Well, California is going broke, but the governor recently signed into law a $10,000 tax credit for first-time homebuyers and for homes that have never been previously occupied. The Franchise Tax Board plans to begin accepting applications on May 1, 2010 for the tax credits. However, the California Association of Realtors economics team has forecast that it will take only 10 to 20 days to deplete the $100 million allocation for first-time homebuyers. This is based on estimated May sales figures and other parameters. It does not take into account the possibility that buyers scheduled to close escrow in April may delay closing until May to qualify for the credit. One of my clients is delaying his closing till May 4 to take advantage of the credit. For specifics related to this plan, visit www.ftb.ca.gov/individuals/new_home_credit.shtml or feel free to send me an e-mail.

SPOSF Institute: What is it?

Advocating for reasonable rules governing the operation of rental housing is the mission of the Small Property Owners of San Francisco Institute (SPOSFI). With over 1,100 members and representing over 3,000 rental housing units, this organization focuses on maintaining the viability of operating rental housing in a political climate that tends to view rental housing providers in a less than positive light.

Unlike large property owners, a preponderance of the SPOSFI membership lives in the buildings in which their rental units are located and there are many of them in Cow Hollow and the Marina. A great number of these buildings are duplexes and triplexes built from 1890 to 1925 – the buildings that make our neighborhoods charming and desirable. These buildings also tend to be more costly to operate than newer buildings. As a consequence, rent control and other regulations tend to affect small property owners more than they do large corporate property owners who can count on turnover to increase income and who can spread maintenance and repair costs over a greater number of units.

“Members of SPOSFI believe in rental housing and are proud to be rental housing providers,” says Noni Richen, SPOSFI president. However, they are increasingly being driven from the market by draconian and over-reaching regulations. “Over the years many of our original members have sold their properties and left the area and the rental housing business. Most of their buildings have been converted to condominiums or TICs. In a city that strives to preserve rental housing, this is counterproductive. We do our best to maintain a climate in which our members are able to do business.”

Marina resident Carmel Passanisi, who co-owns a family building with her mother, says, “SPOSF Institute keeps us informed about matters that help me manage our property. SPOSFI talks to people like us and helps balance the scales in a tough political atmosphere.”

Members of SPOSFI attend monthly meetings with a legal Q&A and timely speakers, receive a monthly newsletter, and have access to valuable rental information and forms on the organization’s “members only” section at www.smallprop.org. For more information, call 415-647-2419 or e-mail [email protected].

E-mail: [email protected]