Capitol Weekly Podcast: The California Housing Speculation Act

We are joined today by San Diego Assemblyman Chris Ward. Ward represents the 78th District, which like most of the state, has been hard hit by the lack of affordable housing. While most housing affordability advocates approach this problem by focusing on strategies to increase supply, Ward has introduced a bill, AB 1771, that aims to keep prices in check by deterring house-flippers: AB 1771 would impose a tax of up to 25% on a house flipper’s net capital gain from purchase until final sale.

The bill is currently scheduled to be heard in the Assembly Revenue and Taxation Committee on April 25; We chat with Ward about his proposal, and as always, we tell you who had the Worst Week in California Politics.

Episode Notes

:20 What does AB 1771 do?

2:09 What are the penalties?

4:05 How many houses are “flipped” in California?

5:30 Tax implications?

6:32 Speaking of taxes, what about a Vacancy Tax?

7:47 What’s the status of housing inventory?

9:56 How does this bill fit into NIMBY/YIMBY discussion?

13:35 How does this play in different parts of the state?

18:00 The response in the Capitol?

18:47 The #WorstWeekCA