Feliciano Realty Group

As I look back on 2022 – I ask myself – where did it go. It seems like 2022 just flew by. It appears 2022 was a tale of two stories.

Coming into 2022 the housing market was booming. Interest rates remained low, values continued to climb and wall street was racing to new records. As the markets raced up, inflation took off as well. Energy prices, food and fuel hit new highs.

To curb inflation the Fed instituted significant rate hikes and the market responded. By summer Wall Street was declining and housing prices were cooling significantly.

As we ponder the financial decisions made, we begin to question when the markets will return to some normalcy.

Looking ahead in 2023, The California legislature enacted legislation to make housing more affordable and to increase the availability of housing.

An example is SB 197, a bill to improve housing affordability, which allocates additional funds to CalFHA to fund a down payment assistance program entitled the California Dream for All Program plus provides funding for low-cost loans to homeowners seeking to construct auxiliary dwelling units (ADUs).

SB 6 is a Bill that help increase the availability of housing which provides a statutory allowance for housing development projects on a parcel that is in a zone where parking, retail, or office space are principally permitted; AB 2221 seeks to resolve some of the roadblocks to obtaining permits for ADUs; and AB 1410 bans HOAs from placing restrictions on an owner who wants to rent out a portion of their property when the owner still lives at the residence

For Feliciano Realty, we continue to provide valuable consulting services to property owners/buyers, real estate investors/developers, and assist first-time home buyers.

We said goodbye to a few friends in 2022 and welcomed many more friends. 2023 will be challenging and provide an opportunity to expand your real estate and financial investments.

We are truly grateful for the trust all of you have put in our company and we are honored that you trust us with your real estate and investment needs.

Have a Happy Holiday Season and a Prosperous New Year!

Founded in 2011, Feliciano Realty is a respected, privately owned, residential and commercial real estate firm in Northern California. The company continues to grow and expand through sales, leasing and acquisition of well located properties throughout the region.

Feliciano Realty believes that "a logical approach, fair dealings and strategic marketing" will continue to be the foundation that will organically grow the company.

Feliciano Realty owns and manages commercial and residential properties in the Greater Sacramento Area. Feliciano Realty Group has completed the sale and purchase of residential and commercial properties in the San Diego, San Francisco Bay Area and Northern California Regions. Feliciano Realty is qualified to complete First Time Homer Buyer and Veteran Administration Home purchase.

For more information contact Ernest Feliciano at 916.730.1662 or [email protected].

The Credit Card Monkey and Inflation.

I am often asked about what to do with the rising cost of everything. Housing, Food, Gas, etc.

The first step is to get the Credit Card Monkey off your back.

Start with a financial check up and a plan for getting the credit card monkey off your back:

Step 1: Reality check

Over the years, with the blessing of Congress and federal regulators, the credit card industry has created a repayment system that was skillfully engineered to put its customers deeper and deeper into hock.

By keeping credit limits high and monthly payments artificially low, the financial services industry created a dangerous sense of well-being among borrowers.

The first step to getting control of credit card debt is to remove yourself from the fantasy mindset that as long as you can make the minimum monthly payment, your debt is under control.

For example, that $18,000 balance — at a fairly generous 18 percent interest rate — would require a $360 monthly payment, based on 2 percent of the outstanding balance. At that rate, you’ll pay roughly $52,000 in interest before the balance is finally paid off. And it will take you 56 years.

Step 2: Make a plan

If you haven’t already done so, make a budget. You really have no idea if you’re truly broke until you understand where your money is going.

Gather three months' worth of bills and make a list of where it goes. If you’re a heavy ATM user, keep a “cash journal” for a month or make your best guess about where you spend. Include all family members to make sure they get the same reality check.

If your monthly expenses are bigger than your income, you have to make some tough choices.

There are no right or wrong choices as long as you can get your budget to balance. Try to classify as many budget items as you can as "non-essential." Consider a list of things you can sell.

You may not have to make all these cuts, but look for as many as you can. Your goal is to find enough savings to make a meaningful dent in your credit card and other debts, not just the minimum payment.

Depending on the outcome of this exercise, you have to take a courses of action to address the Credit Card Monkey.

I often get inquires from clients seeking information on how to deal with the Transfer of real property of a deceased property owner.

New California Law change on the Transfer on Death Deed ( Deed Upon Death) deed ( as of January 1, 2022

California law allows individuals to bypass estate planning and leave real property to a beneficiary via a revocable Transfer on Death Deed, which is codified in Probate Code section 5600.

What is a Transfer on Death Deed, you ask?

A Transfer on Death Deed is an instrument that makes a donative transfer of a real property to a named beneficiary on the death of the transferor which remains revocable until the transferor’s death. The transferring instrument is required to be notarized and recorded with the county recorder within 60 days of ex*****on.

Basically, an individual with no estate planning documents, can sign a Transfer on Death Deed, which includes language that makes the transfer revocable during the transferor’s lifetime and is valid so long as the document is notarized and recorded within 60 days of ex*****on. The beneficiary can then successfully bypass probating that real property upon the death of the transferor. A simple notification of the death of the transferor to the county recorder signed by the beneficiary was all that was needed to transfer the property into the beneficiary’s name.

Prior to January 1, 2022, the Transfer on Death Deed forms required statutory “common questions” relating to the use of the form, but these “common questions” and the 60-day recording requirement were originally intended to become inoperative as of January 1, 2022.

Recently however, Legislature amended these statutes and revised the requirements, making them remain operative until January 1, 2032. The new revisions include redefining and newly defining certain terms such as “beneficiary,” “subscribing witness,” “unsecured debts” and “real property,” among others.

Also, the amendment changes how the transfer or revocation becomes effective.

Going forward, the Transfer on Death Deed will need to be signed by the transferor before a notary public, dated and signed by two witnesses. Prior to the transfer becoming effective at the death of the transferor, the beneficiary must serve notice on the transferor’s heirs and the amendment creates a new statutory form for that purpose.

Although a Transfer on Death Deed seems simple, there are a number of complexities that someone who is thinking of using a Transfer on Death Deed needs to consider. These complexities, if not navigated correctly, can cause a Transfer on Death Deed to not work as intended.

To avoid any potential problems arising from solely relying on a Transfer on Death Deed and to avoid the time and expense of probate, it is strongly advised to have an estate plan in place leaving any real property to a designated beneficiary or beneficiaries.

If you have elderly parents with real estate holdings, it is advisable to discuss and establish an Estate Plan in Place. Review your unique situation with an experienced in Estate Planning Professional.

For more information, please contact Feliciano Realty at [email protected] or 916.730.1662

DISCLAIMER

The information presented in this Article is not to be taken as legal advice. Every person’s situation is different. If you are facing a legal issue of any kind, get competent legal advice in your State immediately so that you can determine your best options.

FOR IMMEDIATE RELEASE
SACRAMENTO, CA.-Feliciano Realty Team today announced the completion of sale of single family residence (Sacramento, CA.).

Feliciano Realty represented the Seller, and Downtown Realty represented the seller.

The California Stay-at-Home Order has forced real estate agents to adjust their business plans and innovate in order to remain productive. Homes are selling faster than they did in 2020, and bidding wars have diminished as more inventory has come on market and first-time and trade up buyers are have limited competing with other buyers as mortgage rates continue to hit record lows.

Feliciano Realty assisted the seller to prepare the home for sale and locate to another property in their desired area and into a smaller house.

As a result of record low home mortgage interest rates and limited large home, the seller reached out to Feliciano Realty to capitlize on the market demand for a 5bdr/3ba single story family home in the highly desirable "Arden Park )" area of Sacramento. The Seller obtained an offer above the list price.

Feliciano Realty has assisted many clients to find an affordable home in a real estate market with limited supply of affordable homes, and qualify their clients for a low interest rate home loan program.

Feliciano realty works with a variety of mortgage lenders to assist buyers to qualify for a home loan. Its starts with reviewing your credit report and working with a lender to get pre-qualified to determine how much you can afford to spend on your home.

If you are thinking of buying a home, call Feliciano Realty today to start the pre-qualification process.

About Feliciano Realty
Founded in 2011, Feliciano Realty is a respected, privately owned, residential and commercial real estate firm in Northern California. The company continues to grow and expand through sales, leasing and acquisition of well located properties throughout the region.

Feliciano Realty believes that "a logical approach, fair dealings and strategic marketing" will continue to be the foundation that will organically grow the company.

Feliciano Realty has real estate agents and employees dedicated to assist with the sale, purchase, and lease of residential and commercial properties. Feliciano Realty is qualified to complete short sales, FHA First Time Homer Buyer and VA Home purchase.

For more information, please visit http://www.felicianorealty.com/ or contact Ernest Feliciano at [email protected]

California Extends Eviction Moratorium Again

A new Assembly Bill was approved by the Governor of California as of June 28, 2021, taking effect on July 1, 2021.

The statewide eviction moratorium was previously set to expire on June 30, 2021, but has now been extended through September 30, 2021.

Unlike previous extensions of the moratorium, this new Assembly Bill (AB 832) announced the new COVID-19 Rental Housing Recovery Act, which provides up to 100% rental assistance to tenants that are income-based eligible.

California has taken a tenant protection approach during this unprecedented time.

Below are some key dates and changes that were approved of through AB 832:

The eviction moratorium is extended through September 30, 2021.

What does this mean? It means that tenants cannot be evicted for nonpayment of rental debt through September 30, 2021, if they have been financially impacted by COVID-19. A landlord is permitted to serve a 15-day notice to pay unpaid rent, however, the landlord must include a COVID-19 Financial Distress Notice with the Notice to Pay Rent.

If a tenant has been negatively impacted by COVID-19, the tenant is able to sign the Financial Distress Notice, under the penalty of perjury, to notify the landlord that they are unable to pay the entire unpaid rental debt. If this is the case, the tenant has until September 30, 2021, to pay 25% of the rental debt that has accrued from September 1, 2020.

If the tenant does not submit this form and pay 25% of their unpaid rental debt by September 30, 2021, their landlord may proceed with an unlawful detainer action.

There are new notice requirements that landlords must abide by during the moratorium, including new language for Notices served after July 1, 2021.

Landlords cannot initiate a small claims action for unpaid rental debt until November 1, 2021. Under the previous and new assembly bills, the small claims court has jurisdiction over all COVID-19 rental debt cases no matter the amount of rental debt (small claims court retains jurisdiction over all other claims up to $10,000).

Starting October 1, 2021, a landlord may serve a 3-day Notice to Pay Rent or Quit on a tenant, in which the tenant must pay 100% of the rental debt prior to the expiration of the Notice.

However, under the new Rental Housing Recovery Act, the tenant may apply for government rental assistance to receive up to 100% of the amount due.
The criterion for the assistance is based on the tenant’s income.

In the event a tenant does not pay the unpaid debt by the end of three (3) days of being served with a Notice, the landlord must apply for the governmental rental assistance. Per the amended regulations, it appears the landlord is required to fill out their portion of the assistance application, and the remainder of the application will be sent to the tenant to be filled out by the tenant so the government agency can determine if the tenant is income eligible.

If the application is denied, or left incomplete by the tenant for 15 days, the landlord should receive a letter denying the application. At this point, the landlord may proceed with an unlawful detainer action.

At this time, this process is required through March 31, 2022.

Staying a head of changes in the law is vital during times of uncertainty. If you have questions or concerns regarding landlord/tenant rights and protections, Feliciano Realty is available for consultation.

Note: The information presented is not to be taken as legal advice. Every situation is different. If you are facing a legal issue of any kind, get competent legal advice in your state immediately so that you can determine your best options.

Feliciano Realty Group Secures Industrial Lease for United Towing Service of Sacramento LLC.

Sacramento, CA - Feliciano Realty Commercial represented United Towing Service of Sacramento LLC, a new, start up expansion service in leasing a 7,000-square-foot industrial building and yard at Vinci Parkway, in the McClellan Industrial Park area in North Sacramento. Jim Esway with Crossroads Development represented the ownership group.

United Towing Services of Sacramento had a unique set of needs for a new business location. The company needed to find a new space with an exterior yard to allow for onsite storage of vehicles and accommodate four to eight working tow trucks. In addition, the company had to start the business towing operation within two months of securing towing service contracts with major insurance companies. It’s very rare in an urban area to find industrial space that will allow for an auto storage and transportation.

Feliciano Realty was able to find a new industrial off-market space that met their criteria in only one month,”

Feliciano Realty negotiated a commercial contract for United Towing of Sacramento, LLC with tenant improvements to build-out a reception area, private office, and employee break room.

It was important for United Towing Service to secure a location that was centrally located to would allow for contract and service expansion to Roseville and the Greater Sacramento areas.

The Vinci Parkway location was a great choice for United Towing Services LLC for their new home. The property was in the final phase to complete the new build construction and the property was in compliance with the state and local government regulatory, building safety, and environmental requirements for a new start up operations

The economic impacts of COVID-19 has stifled business expansion and frozen commercial leases to allow distress businesses more time to weather the economic storm impacting the California business climate.

As part of the Commercial Services Team, Feliciano Realty specializes in sales and leasing transactions for commercial retail, office and industrial properties in the Sacramento region and Northern California.

About Feliciano Realty

Founded in 2011, Feliciano Realty is a respected, privately owned, residential and commercial real estate firm in Northern California. The company continues to grow and expand through sales, leasing and acquisition of well located properties throughout the region.

Feliciano Realty believes that "a logical approach, fair dealings and strategic marketing" will continue to be the foundation that will organically grow the company.

Feliciano Realty owns and manages commercial and residential properties in the Greater Sacramento Area. Feliciano Realty Group has completed the sale and purchase of residential and commercial properties in the San Diego, San Francisco Bay Area and Northern California Regions.

Feliciano Realty has real estate agents and employees dedicated to assist with the sale, purchase, and lease of residential and commercial properties. Feliciano Realty is qualified to complete First Time Homer Buyer and Veteran Administration Home purchase.

For more information, please visit http://www.felicianorealty.com/ or contact Ernest Feliciano at [email protected].

CA Enacts SB 91 (COVID-19 Tenant Relief Act)
February 2, 2021

At the end of August 2020, California passed the COVID-19 Tenant Relief Act of 2020 (AB 3088). That legislation codified an “eviction” moratorium that ran through January 31, 2021. As part of that law, landlords were required to serve notices to pay or quit with 15 day response deadlines, provided tenants with the ability to complete a COVID-19 financial distress declaration, lower required rental payments in some situations, and placed restrictions on filing of eviction lawsuits until February 1, 2021.

The COVID-19 pandemic has been hard on not only tenants but also on landlords who depend on the rents to cover mortgage payments, pay insurance and property tax bills, and provides for income to live on. A recent survey from the National Multi Housing Council indicates that approximately 12% of renters made no rent payment during January 2021 and it unclear of the renters who made payments how many were full payments and how many were partial payments. Landlords who are collecting the limited 25% of contractual rents allowed under AB 3088 but still paying the expense of their rental properties were looking to the expiration of the moratorium on February 1, 2021, to be able to get the property back to full rent. Unfortunately, that will not be the case. On January 29, 2021, the Governor signed SB 91 into law.

While this statute is similar to the prior AB 3088 there are some very important distinctions that California landlords and property managers must be aware of. The most important item to understand is that under SB 91, the eviction moratorium that was to expire February 1, 2021, has now been extended to June 30, 2021. That means that so long as tenants comply with the declaration process related to COVID rental debt, that a landlord cannot file an eviction lawsuit before July 1, 2021 (Code of Civil Procedure “CCP” 1179.03(g)(2)(A)) nor can a tenant be found liable for unlawful detainer prior to June 30, 2021 if the tenant pays (through one or more payments) an amount equal to 25% of the rent for the period between Sept. 1, 2020 – June 30, 2021 (CCP 1179.03(g)(2)(B)). This law effectively extends the moratorium for another six (6) months.

In addition to the moratorium, like AB 3088, there are several notice restrictions that landlords must comply with related to non-payment of rent. Under 1179.03 there are two notices that must be given related to non-payment of rent that identify the 15 day time period to respond and notifying tenants that even if they pay the 25% reduced rent now, they will have to pay the full amount later. Additionally, the notices will now have to address to possibility that tenants might have rental assistance available to them and provide information about where additional information can be located about rental assistance. Under the revised law, failure to properly provide this information (these new notices) will be a fatal flaw in a landlords eviction case, which means, that without strict compliance, the Court will not be able to find in favor of a landlord in an eviction action. (CCP 1179.03(a)(1)).

In addition to the above two notices that landlords are required to serve for non-payment of rent to preserve eviction rights, a third notice must also be served. Pursuant to CCP 1179.04(b) landlords are required to provide to “tenants who, as of February 1, 2021, have not paid one or more rental payments that came due during the covered time period (March 1, 2020 – June 30, 2021) a notice related to the passage of SB 91. This notice must be provided on or before February 28, 2021. A landlord cannot serve a non-payment of rent notice as until this new notice has first been served.

Further, the law extended the small claims jurisdiction of unpaid rent claims to July 1, 2025. Additionally, landlords cannot charge late fees related to non-payment of COVID-19 rental debt if the tenant has provided the COVID-19 financial distress declaration. (Civ. Code 1942.9(a)) and a landlord may not consider “alleged COVID-19 rental debt” as a negative factor when considering a prospective tenant. (Civ. Code 1785.20.4).

An important change to the law deals with the limitation on recovery of COVID-19 rental debt. Under CCP 871.10(a) the newly added section requires landlords to provide documentation showing how the landlord made a “good faith effort to investigate whether governmental rental assistance was available to the tenant, seek governmental rental assistance for the tenant, or cooperate with tenant’s efforts.” This statute goes further than most and requires a landlord to potentially seek the assistance on behalf of the tenant prior to any action. More problematic is that the statute gives the Court discretion to reduce damages for unpaid rent if the Court determines “that the landlord refused to obtain rental assistance from the state rental assistance program.” (CCP 871.10(b)).

This is of significant importance because SB 91 created the State Rental Assistance Program (“SRAP”), codified in the Health and Safety Code (“HSC”). Under this program, the State has allocated $1,500,000,000 towards rental assistance. Through the program the State has created a 3-round system for rental assistance. The first round is targeted to assist households with income less than 50% of the area median income; the second round is targeted to assist communities disproportionately impacted by COVID-19; and, the third round is targeted to assist households with an income less than 80% of the area median income. For informational purposes, the US Census Bureau reports that the median household income for 2019 in Sacramento County was $67,151.

The application process is to open on March 15, 2021 and for applications that are approved, funds disbursed are limited to use for rental arrears, prospective rent payments, utilities (arrears and prospective utility payments), and limited other housing expenses allowed under the Consolidated Appropriations Act. Rental arrears will only be allowed for the period between April 1, 2020 – March 31, 2021. If your tenant has arrearages that go back to before April 1, 2020, those are covered by this program. However, like every good governmental program, there are strings attached. For landlords that take advantage of this program, landlords will only be able to collect 80% of the eligible rental debt and as a condition of accepting the assistance payment, a landlord will be required to waive the remaining unpaid debt. (HSC 50897.1) This means that for the landlord who accepts the rental assistance they (1) cannot pursue the remaining unpaid rental debt, and (2) may not use the remaining unpaid rental debt as a basis for an eviction. (HSC 50897.1(d))

Additionally, a landlord seeking a judgment for unpaid rent must state under the penalty of perjury that (1) that the landlord has no pending applications for rental assistance; and (2) that the landlord has not received any rental assistance from any other source related to the amount sought under the complaint. (HSC 50897.3(e))

While landlords are not obligated to participate in SRAP, one thing to consider is the limitations related to Civ. Code 871 above. As discussed above a landlord’s failure to seek governmental assistance can be considered by the Court as a means to potentially reducing the amount of unpaid rental damages a landlord may be entitled too in the future. It’s a bit of an unintended “catch-22”.

SB 91 creates a complex web of requirements that landlords and property managers need to be aware of and comply with related to COVID-19 rental debt. There may be some benefits for landlords willing to compromise rental arrears for payment now related to eligible tenants.

If you would like a consultation with us, please contact our office at 916-730.1662.

The information presented in this article is not to be taken as legal advice. Every situation is different. If you are facing a legal issue of any kind, get competent legal advice in your state immediately so that you can determine your best options