Federal Legislative Update The theme of housing-as-a-right has been growing around the country. Similar to the Right-to-Medicine or Rightto-Care efforts that developed into the Affordable Care Act (often referred to in common parlance as Obamacare), Right-to-Housing efforts have been growing as the progressive wing of the Democratic Party has expanded. The proud announcement of several prominent Democrats as members of the Democratic Socialists of America Party as far back 2018 highlights the Socialist influence on modern policy. Examples of the anti-capitalist push are evidenced by a move to stake-holder capitalism, which is in effect, socialism and is anti-capitalist. Why does this matter? If a business person desires a return on investment, specifically, profit – then the investor needs to be aware that the socialist efforts believe they have a right to your work and investments, with you forgoing any profits…or for that matter the initial investment as well. In late 2021, San Francisco moved beyond the standard rhetoric of demanding affordable housing. Not only to they require property owners to partner with the government and accept the local housing authority as a business partner by treating Source of Income as a protected class
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(contrary to the federal development of the program), or even implementing rules state- or city- wide on rent increases, as more leftist states have started doing, their latest petulance is to require a property owner to meet with and “satisfy” residents’ concerns. If not, the City can lower rents to it’s satisfaction. No concern about investments or returns, or even increasing tax and utility costs. Simply put if the owner doesn’t meet with residents at least four times a year and meet their satisfaction on maintenance, amenities and price, the City will step in and lower the rent. Afterall, if the stakeholders aren’t taken care of, why should the capital benefit the owner. Needless to say, the result will be similar to impact of rent control in New York City during the 50s and 60s. Tenement buildings will be rundown due to lack of investment, communes will take over with capital lost, and only those with the wealth to take over the maintenance of the buildings will have decent housing. What business would ever want to invest in San Francisco housing again? Welcome to Socialism, and it will be coming to a blue city or state near you soon.
REAL ESTATE OPPORTUNITIES IN INVESTING
