The Bay Area is at an enormous risk of losing our neighbors who make it such a diverse and vibrant region. Currently, 51% of Black households and 42% of Latino households are in danger of being priced out of their communities. Additionally, 60% of Black households and 55% of Latino households face rent burdens, meaning their housing costs exceed 30% of their income.
One solution to this crisis is being developed in cities such as San Jose, Oakland, Berkeley and East Palo Alto that can help save the homes that are already affordable. The Tenant or Community Opportunity to Purchase Acts (TOPA/COPA) empowers tenants with options and opportunities when their rental property owner decides to sell. These policies give either tenants or nonprofit housing developers the first chance to purchase the rental property and keep homes affordable.
Some worry that TOPA/COPA is unrealistic because low-income residents often can’t afford to buy their homes. But these policies can connect tenants with mission-oriented nonprofit organizations that can acquire the building. In these cases, the nonprofits will be required to keep the building affordable permanently. And in the cases that tenants decide to purchase on their own, they will be offered technical assistance, education and financing to help make these purchases possible.
For so many tenants who already live in affordable housing, there is a threat that they may lose their homes. A recent report found that the Bay Area loses an average of 32,000 unprotected affordable homes every year. While building more housing for all income levels seems obvious (and necessary), the reality is that building affordable housing is incredibly costly and slow-moving. Policies like TOPA/COPA can preserve homes in only 1-2 years compared to around five years to build new housing and can cost 50%-70% of what it takes to build new housing.
We need to give our neighbors the opportunity to improve their lives and build the future they deserve, which depends on having a decent and affordable place to live. Protecting affordable housing allows those who live there the chance to prosper, which strengthens our communities and provides our children with a better chance to succeed in school, get jobs and build their own strong families. And protecting these homes will keep people of color in our community and build a future for their children.
Landlords and real estate developers believe TOPA/COPA infringes on property owners’ rights. They are concerned that TOPA/COPA will force them to sell, or that they can’t control the price, transfer property to their family or advertise the property. The reality is that owners have the right to reject an initial offer from tenants or nonprofits in search of the most favorable offer possible. If an owner receives a higher offer from another buyer, the tenants or nonprofit have an opportunity to match, but TOPA/COPA will not prevent the owner from getting the best price offered. COPA was adopted in San Francisco in 2019, and the evidence shows that overall market conditions rather than a singular local policy drive property values; in San Francisco, property values remain healthy post-COPA.
Everyone has the right to a comfortable and affordable place to live. Encouraging our local governments to enact TOPA/COPA policies is critical to extend that opportunity with the benefit of advancing equity and inclusion.
The Bay Area has an incredible record of innovation and problem-solving. Let’s tap that talent to build the futures where people have stable homes and are free to pursue their dreams and raise their families. TOPA/COPA is a vital step toward preserving the Bay Area as the diverse and thriving community we all love. Our local governments must muster the courage and vision to help our neighbors now.
Jesse Arreguín is mayor of Berkeley. Keith Carson is an Alameda County supervisor. Peter Ortiz is a San Jose City Councilmember.
Source: www.mercurynews.com