The Accidental Pandemic Landlords

Did a lot of people make pandemic house purchases? Yes. Did some of them overpay? If you call bidding $560k over asking overpaying, then yes. Are many of them happy? For those who are locked into the most ridiculous interest rates ever and are not renting anymore, heck yes. 

Do some of these people regret their purchases? Of course. I personally don't know of anyone in this boat, but some are feeling remorse because they reacted in a panic. And some of these new homeowners are wanting to move, relocate, etc. But rather than give up the house and their stupidly low mortgage lock, they are opting to rent out their homes while the rental market is hot. They're becoming accidental landlords, and as a result, discovering the joys of landlord tax writeoffs. 

Mills Act Contracts - City Wants to Re-assess the Impact of the Mills Act

The city is contemplating modifying the Mills Act, and hopefully not, end the program. This is a big issue since it affects a huge number of homeowners of single family homes as well as renters and owners of condos in many building in DTLA, Hollywood, Mid City, etc. 

Contact the City Planning Dept to voice concerns: https://bit.ly/3yregJF

The Mills Act:

In California, the Mills Act can be linked with the 20% historic preservation investment tax credit provided by the Federal Historic Preservation Tax Incentives Program and the Tax Reform Act of 1986. Federal affordable housing tax credits may also be utilized with these incentives to offset rehabilitation costs. Over a half billion dollars of private investment in California’s historic buildings is due in a large part to this program. Preservation tax incentives used on under-utilized or abandoned hotels, offices, stores, schools, warehouses, and factories give new uses that maintain their historic character and revitalize the property.

Benefits of the Mills Act:

- Historic Preservation 

- Housing Affordability via tax incentives

- Revitalization of once-derelict buildings

- Restoration instead of tearing down and increasing landfill waste

- Contributions to city economy due to restoration efforts

- Contributions to city in terms of historic and cultural monument status 

- Reversal of blight in many areas

Mills Act Building in DTLA (in addition to the many structures and single family homes around LA!)

https://reinventingdtla.com/search-by-feature

Learn more about the Mills Act:

https://planning.lacity.org/preservation-design/historic-resources/incentives-resources/mills-act

Buyers Taking Advantage of Softening But Not Crashing Market

Interest rates may not go down for a while, and buyers are taking advantage of the softening market before it begins to head up again. 

Some buyers are waiting it out, seeing if the market will implode like it's 2009. But that doesn't seem to be happening while supply remains tight. 

I don't know anyone who is giving up their 30-year fixed 2.5% interest rate anytime soon. 

Frank Gehry designed GRAND LA opens!

The Frank Gehry designed GRAND LA is now open, along with LA's first Conrad Hotel, and the fantastic San Laurel restaurant by chefs Jose Andres. This will be a fantastic addition to the Grand Arts Corridor, within a few steps to The Broad, Walt Disney Concert Hall, MOCA, Dorothy Chandler Pavilion, Mark Taper Forum, Redcat Theater, etc.