Tell city council members and the mayor to stand up for homeowners and tenants and oppose TOPA / OPA.

The Oakland, Berkeley and East Palo Alto City Councils are currently considering a radical ordinance misleadingly called TOPA / OPA (Tenant’s Opportunity to Purchase Act). It’s being sold as a way to prevent displacement and promote ownership opportunities for tenants; but in reality the ordinance will not create opportunity for any of our residents. It uses our underprivileged as a front to grant government the power to dictate how properties are sold, to whom they can be sold, and even how much they can be sold for. The text of the ordinance is being withheld in Oakland from the public by its authors, yet all indications point to the legislation being similar, if not identical to, the defeated Richmond TOPA ordinance after overwhelming non-partisan opposition. You can also read the Berkeley TOPA proposal here. There have been multiple TOPA / OPA proposals, including in East Palo Alto, and all fundamentally flawed, lacking adequate public outreach.

Renters: Does buying a property that the city controls but you have to pay for sound good to you? TOPA / OPA would essentially remove all the financial benefits and freedom of ownership (appreciation, income, tenancy control), and leave you with all the responsibilities. How is that a worthwhile investment? Once the city forces the deed restriction on the property to make it “permanently affordable”, what is that property then worth to you and others? Would a bank even grant a borrower a loan under these conditions?

Homeowners/property owners: How would you feel if the sale price you must offer your property to a tenant was dictated by a “city approved” appraiser? And how about regulation that could delay a sale indefinitely? What if you need to sell quickly, or want to sell your property to a friend, neighbor, or family member? Under TOPA / OPA, the freedom to sell your property in the manner in which you choose for the price which you choose would go out the window.

So who looks to benefit from this ordinance? If you read the fine print, it’s the special interests groups. TOPA / OPA developers that can have the tenant’s rights transferred to them, leverage them against the owner, then later claim a potential exemption from all the "permanent affordability regulations", property taxes or normal rent control limits. The recent May 20th (2021) TOPA proposal in Berkeley allows developers to drastically increase rent on tenants (a 40% rent increase over 5 years).

Everyone who cares about our city should be against it.

Key issues of the ordinance are listed below:

Gives tenants Right of First Refusal/Offer to purchase property before any rental property may be sold in an open, free market.

• TOPA / OPA can delay transaction time up to a year or more. Multiple TOPA developers can EACH take turn with extended time delays.

• Drastically devalues properties and harms home equity. Homes without TOPA restrictions are worth much more.

• Reduces housing stock which will drive up rents and harm renters.

• Prevents a property from going on the free market for sale until every renter waives his or her rights in writing, and creates lengthy, unpredictable time periods in which a sale, or lack thereof can be delayed indefinitely.

• Allows qualified tenants to transfer these rights to a third party "non-profit" organization for each potential sale of property.

• Gives special interest developers first dibs on properties and prevents sales to family or friends at a reduced price.

• Undermines a tradition of homeownership in minority communities, to keep black properties in black hands. Many black owners leave property for below market to community members, a tradition that originally arose when banks would not offer loans to minorities. Minority residents demand an Equity Study!

• TOPA takes away the ability for owners to leave their own homes to relatives like nephews or nieces and discriminates against non-traditional households and the LGBTQ community.

• Any owner who is found in violation of the regulatory process could be fined $1000/per day per unit.

• TOPA / OPA is extremely convoluted, bureaucratic and expensive to administer. In Berkeley, it will cost $10-15 million each and every year going forward — this money could go directly to tenants as rental assistance instead of going to bureaucracy.

• After 40 years of experience with TOPA, Washington DC is defunding it in favor of effective affordable housing programs such as rental assistance for low income renters, downpayment assistance to promote home ownership, and shelters to help homeless residents. TOPA strips money away from these affordable housing programs.

This ordinance is not a progressive way to promote ownership opportunities for existing tenants, it's a blatant attempt to seize private property through a coercive set of regulations. We can not let this action by the city council fly under the radar, that is why it's imperative we contact each of the Oakland city council members, Berkeley city council members, East Palo Alto city council members, speak at public forum, and sign the petition to express our opposition to this proposal, and demand alternative methods to be developed amongst all stakeholders.

UPDATE: Although Oakland council members are still committed to proceeding with the TOPA legislation, Berkeley has backed off TOPA upon close examination: “Staff were in the process of studying the amendments, finances and more but [Mayor] Arreguin ultimately decided to pull the plug on the project for the time being.” Due to numerous practical and implementation problems with TOPA as well as strong public opposition there were multiple revisions to the TOPA ordinance in Berkley. However, the TOPA ordinance was ultimately deemed not feasible by Mayor Arreguin who author the legislation in Berkeley and subsequently placed it on hold. OPA is currently being discussed in East Palo Alto. It is vital that you be informed and voice your opinion to council members.

Berkeley TOPA article: https://www.berkeleyside.org/2021/06/27/topa-berkeley-on-hold-until-fall

Please read the public comments on the TOPA article,