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The Professionalist Real Estate Investing Podcast
Housing Laws 2025: What You Need to Know
Podcast Intro
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Welcome everybody. It's the Professor's Real Estate Investing Podcast. I'm Wednesday one and only Marcus Heredy. Yes, sir, how's it going? Oh good, today we're going to talk about you know, it's a new month the new housing laws, effective of this year, of July 1st, 2025. Let's do it All right. The first one In this beautiful state of California, because everything changes all the time. Yep, the number one is the California statewide reform. It's the CEQA streamline, the AB-130 and SB-31. 131. 131.
Speaker 2:Excuse me, it's all good. I've heard of this. One or both of them, actually, I am familiar with this one.
Speaker 1:This one is the infill projects in urban areas are now exempt from full CEQA environmental review. Yes, Qualifying projects to get a 30-day deadline for approval Projects nearly missing exemption will have to review will have a review limited to specific environmental impacts. Yes, what's that? What's that one deal with? I really don't know much about that.
Speaker 2:So, like CEQA and environmental like, they are the people that control, like you know, when you're building and stuff like that. They have to come and do tests and, from what I understand, they make sure that where you're building at um is good and sound for the environment. Um, as as far as like, maybe, uh, soil testing and stuff like that, what you're building on um, materials that you're using and stuff like that. They just want to make sure that when you're building that you're following environmental guidelines. From what I understand, CEQA I think they call it CEQA Okay, so that's what I get.
Speaker 1:All right, yeah, the next one builder's's Remedy and ADU reforms. It says streamline.
Speaker 2:You go ahead, it's all good. Streamline, a ministerial permitting, expanded via AB 2011 or 2011 and SB 684. A new 18-month entitlement extension A new 18-month entitlement extension allows deferral of fees until occupancy, which this is also really good for housing. The ADUs is a new thing that people are getting into and wanting to build, especially in California. 18-month entitlement extension it's awesome because you know when you're building and you go over your timeline or you go over depending on what's going on if it's weather, or you just go over your timeline period of building. That extension will help out a lot. Instead of just having, like the 12-month, you might need that extra six months to be able to have until you're done building and then you get the thing occupied.
Speaker 1:And I think that's good too, especially with the ADUs, because the ADUs I don't know what the percentage is going to help out with the housing crisis, but it's helping out some. So, with this right here, giving people an extension, you know, allow deferral of fees until occupancy is done.
Speaker 2:I think that's good and beneficial for the ADUs. Yeah, yeah, I think it'll work out in the build as far as the new process of building ADUs and it's going to help out a lot of investors, so a lot of just people who are building.
Speaker 1:ADUs period. Oh yes, the next one balcony inspections SB 721BA and 2579. Buildings with three or more units must have elevated exterior structures Inspected. Deadline moved from January 2025 to January 2026.
Speaker 2:Expected deadline move from January 2025 to January 2026. Yeah, this is like just a basic little bit of reform or basic law, for the codes are for building, for the area and for what you're building on. If it's single family, you've got to follow those guidelines and codes and this looks like it. Like I said, buildings with three plus units must have elevated exterior structures inspected and that's including balconies.
Speaker 1:so, um, that's a new law just take, just took effect and on july 1st, sb, sb 721 and ba 2579 yeah, I have a quick story about that too, because I'm glad they do check balconies, because, uh, it was years back my parents, they lived in an apartment down in the Bay Area and they were on the second floor and actually somebody in their apartment complex it was a good-sized apartment complex they literally went down from the third floor down.
Speaker 1:So like that was huge, like it was so bad that they basically no one in the apartment complex could not use their balconies at all.
Speaker 2:wow, well it sounds like what happened in that situation is they maybe built a cell building, but when it came to outer structures or exterior structures, they, they just like cut corners. Yeah, right, because that was on that building.
Speaker 1:Yeah, indeed, the next one ADU, it's the AB2533. Extends amnesty I can't smell nothing today. Amnesty for unpermitted ADUs built before 2020, requiring local agencies to provide clear permitting pathways yeah, yeah, cause, uh, this is good.
Speaker 2:This is a good one because I remember when ADUs were just being talked about and I think that permitting offices and County places were were too clear on on how to, to, to do the permitting for ADUs so like, um, you know before 2020, um, it wasn't a clear uh, you didn't have a, a, a clear, um, a pathway to get permitted, the ADU permitted. There was always some kind of, I believe, hang up, because, you know, everything was so new.
Speaker 2:Yes, so I think there was like hangups and permitting offices with well what can we, you know, uh, what's the law on this or what's the rules on this for adu? So they were still kind of maybe sounds like getting things like situated in those offices for them to to um be able to do it. The right way to to have clear, permitting pathways, like it says, you know, extends amnesty for unpermitted ADUs that were built before 2020 because a lot of people were building these ADUs and not thinking they needed a permit.
Speaker 2:Yes, and they were building them the wrong way. So I think this helps right here.
Speaker 1:Yeah, it was an uncharted territory at that time because people were like how are you going about doing this? I guess the ADU is like I'm doing it. I'm doing it extended at my house or behind my house for people to live in.
Speaker 2:Yeah, and it's just all brand new and people didn't know the clear rules and the permitting process on it for builders, and now they've got everything kind of streamlined with the laws and bringing it together.
Speaker 1:And I was thinking also too, like when the government probably didn't know much about it either, especially around here. But then when people started doing it like, all right, how are we going to get our hands in this? We've got to get our money made also.
Speaker 2:Yeah, we've got to figure out what the laws are going to be with building ADUs and we're going to figure out the permitting process with the ADUs. So I think it's coming up with this one, the ADU amnesty, giving amnesty for those ADUs built before 2020. Like I said, it's still in kind of the beginning stages of it being kind of popular. It's more popular now of the beginning stages of it being kind of popular. Very true, it's more popular now the ADUs.
Speaker 1:And this one. It's the local zoning updates. This one I didn't know about either, the single family zoning bans. They said cities like Berkeley and Cambridge now allow duplexes, multiplexes and middle housing by right. In California, statewide similar reforms also continued. I didn't know that Berkeley and Cambridge they're allowed now to have duplexes and multiplexes.
Speaker 2:Yeah, I wasn't too familiar with the area, type flexes. Yeah, I'm, I wasn't too familiar with the area. I'm still kind of not, but um, just to see this uh update and their local, local zoning area is awesome because it gives options for more builders and stuff and it gives more options for more people um to invest in, um, you know the, the single family zoning um have allowing duplexes and more multifamily. That's awesome. That's awesome that it adds more affordable hopefully more affordable housing, excuse me in.
Speaker 1:California in those areas. Yeah, definitely, because we definitely need it. Yeah, the next one is going to be the rental tenant protections here in California. Credit history Very important right here. Yeah right, credit history bans SB 267. Yeah, landlords cannot use credit history alone for rental subsized housing eligibility without alternative proof of method, bro Right, they can't just sit there and go off your credit alone.
Speaker 2:You know what I mean. They have to, you know, be able to go off of a previous rental history, of course, you know, that's like really important.
Speaker 2:You know, not just someone's credit, because you know anything can happen to someone's credit within the time that they're living where they're living. Like stuff happens, man. You know people, medical stuff, that you just unforeseen stuff that may take a hit on your credit. So I think this is really good. They can't just you know they can still go off credit, but they can't just alone go off credit. They have to be able to maybe use that as a last factor to be able to get into a place. Now you know, especially subsidized housing.
Speaker 1:You know what I mean.
Speaker 2:You should be able to just get in off of being low income. You know what I mean. You know some people that are low income struggle with having or struggle with rebuilding their credit and getting out of certain situations that kind of messed their credit up in the beginning.
Speaker 1:You know, life happens, man oh yeah, I mean there's Swiss and tourists. Everybody's situation is completely different. Oh, I mean, they're Swiss and tourists, everybody's situation is completely different. Oh yeah, oh yeah. The Disability Rights. Sb 1620. Tenants with mobility-related disabilities may request accessible unit transfers at same rent rate.
Speaker 2:Yes, yes, I think this is excellent. People with disabilities you know, sometimes they get the short end of the stick on stuff because of how properties are set up and how it's hard for them to move. A rail Act is good for for landlords and owners not to get overall people with disabilities charging them more for a different type of unit than they're in or just because For extra accessibility, yeah, so it's just. I think it's a good thing, this is excellent Me too.
Speaker 1:And the next one just cause eviction limits. Reinforces state rent control with good cause eviction, it says protections in many jurisdictions and eviction limits.
Speaker 2:I think it's good, because you can't just be evicting people because you want to, just because you think you can. That's it. In this state of California, we have laws in place for tenants. This is not a landlord-friendly state no, it's not. Yeah, so so the tenant laws here are really strong in california and you can't just you know, with housing already the way it is and it's short. There's a shortage across the nation here in california. There's a portable housing crisis here as well. So like just just being able to evict somebody because you can is just not right. Like people have to be protected and not become homeless because of someone's personal opinion or they feel like you know they're going to go off someone. Oh, you've had too many evictions so you cannot live here based on your past. So, yeah, just cause and eviction limits. Yeah, that's really good protection for California tenants and residents yes and Nick.
Speaker 1:This other one is outside spotlights HUD zoning back rollback Federal yes, that would put a lot of pain.
Speaker 2:What's that? The federal?
Speaker 1:Affirmatively.
Speaker 2:Yes, that's weird Right federal?
Speaker 1:Oh, affirmatively, yes, that's weird. Right Furthering fair housing rule. This is scrap, allowing local jurisdictions more control over zoning without federal equity conditions.
Speaker 2:Okay. So this sounds like let's see out of state spotlight. It sounds like HUD zoning rollback and it sounds like, uh, that the fed um cannot um, um, exercise, um, um, like certain jurisdictions and can't like what come up with their own zoning.
Speaker 2:yeah, or the area it seemed like it's, it's more open now. Yeah, yeah, it seems like it, they're, they're, they're stepping back or stepping off of, uh, the zoning situation where, um, you can't, uh, you can't uh, it's not as hard. I'm guessing to, to, to result something. Is that, what? This? Yeah, that that's, that's what I'm doing. When it comes to that, yes, they're not going to make it as hard to rezone certain areas.
Speaker 1:Which is definitely right, because how else are you going to deal with this housing shortage?
Speaker 2:Yes, exactly Like certain places and builders are going to want to get a certain lot of land rezoned, depending on where they're at, if, if they're trying to build multi-family, if they're trying to build big, uh, build uh townhomes, you know whatever. So like if this is saying. From what I understand, it says scrapped, allowing local jurisdictions more control over zoning without federal equity conditions. So so, without the Fed being involved, the local county jurisdiction has more control over changing the zoning of a certain lot or a certain area without the boys being involved being down your throat.
Speaker 2:That's where I get out of that, yes.
Speaker 1:And the last and least, gender identity discrimination. Iowa, sf 418,. Federal protection limited in certain public accommodations from July 1st 2025 based on gender identity. This is great man, the. The gender identity. That's huge right now. Yeah, it's very huge. It's uh, it can be a very touchy subject. So, basically, I tell people I'm like you know what, all of us are people, we are god's children, and just keep and you just treat everyone how you would be treated exactly.
Speaker 1:Exactly Show love and respect. You know what I mean? Yeah, because it goes a long way and I tell people there's two sides. I mean people talk about karma in a bad sense. No, karma is good also. Yeah, there's two sides to karma. Either you get that good karma or that bad karma. Yeah, exactly.
Speaker 2:Exactly and this kind of. I don't even know why we even have to like this, right? I don't either, because I mean, why care about someone's gender just because they're trying to live somewhere? Exactly, right. You know, a human being trying to find a roof over their head cares what their gender identification?
Speaker 1:is like Exactly.
Speaker 2:I'm not worried about it. No, no. Lgbqt and gender identity gender identity, um, uh, and people that who are trying to fight for their gender so they don't get discriminated against. So there's a lot of like laws and there's a lot of fight over, um, you know, being equal to someone who's trying to like, just be a human being. Like, if they change their gender, they change their gender. Like shouldn't be related to housing to me.
Speaker 1:But no, no, right, it shouldn't at all. But with the gender, you know, the disability act, all of it yeah, it's to this very day still plays a key part and it shouldn't play the housing yeah, it plays a key part in housing to make sure, like you're just not getting discriminated against race disability, your gender your religion, all of that.
Speaker 2:So it all comes together with with making sure you get a fair chance at housing.
Speaker 1:Yes, and then this this is off topic, but right now you know it's the beginning of July. Yeah, what do you feel is going to happen with the interest rate?
Speaker 2:So the interest rates. Are talking about what Like maybe another cut here soon and then that's it for the year.
Speaker 2:Yeah, I tell a lot of people there's not going to be much movement this year with the interest rate, right, right, we're going to have to ride this one out and it might be another cut, small cut, towards the end of the year. But I guess from what would you say, jerome Powell saying he ain't making no cuts next year unless this tariff stuff goes away? But Donald Trump already has the tariff stuff in place and it's happening right now. So, um, um, you know, the the fed is just gonna have to wait it out and see what's gonna happen. Um, and that's what they're waiting on.
Speaker 1:they don't want to, they don't want to be influenced by donald trump's and what he has going on yeah, you know how I tell people, powell is a very interesting person and he he holds a lot of power in his position because, you know it, whatever half he does, it has a whole dynamic effect, even with everything, with our market and everything that goes on right right, right, and I was telling you earlier we should just go ahead and just talk about, have another episode and talk about, like you know, uh, just stuff that's going on as far as, like, the fed, the, the, um, what's going on a little bit with with the administration and policies, and we did the new laws that took effect today and we did that.
Speaker 2:but, uh, we should touch on that a little bit more too. We should touch on the, the, the, the federal reserve, maybe, uh, what we've been hearing and we'll, we'll probably would do another episode on just talking about it.
Speaker 1:Oh, yeah, I think too, how the Federal Reserve, how it affects everything, everything, everybody, the spending, just everybody, in general yeah. Before they do a forecast of what they think it is, and then they go about like, okay, this is what it is, and then they do their future projections.
Speaker 2:Yeah, yeah, talking about like I okay, this is what it is and then they do their, their future projections. Yeah, yeah, talking about like I've seen all the new seven cuts coming in the next couple years or the next in 2026 or something like that, going into 27, also have like seven cuts or something like that but who's to say they might not they, they might change that, you know.
Speaker 1:Oh, exactly right, it's always it's always speculation, always, always speculation, but Always, always speculation. But, yes, that's the laws for this new year, right here, of housing that's going on right now. In July, the July 1st, new housing laws, yeah, but rather than that, off the top of my head, I can't think of anything else.
Speaker 2:New construction is still booming, yeah, there's still building out there. You know, new construction still booming, yeah, yeah, there's still building out there. Other areas, other states are still booming. There's still building. Here in California, here locally too, there's still a lot of building going on. It's just, you know the different price points of building if you're building affordable housing, if you're building just custom homes and stuff like that building still happening.
Speaker 1:Yeah, and I want to shout out to anybody who's doing any type of real estate investing in north carolina, because I just seen that they are doing, uh, uh, an ai complex there in north carolina. Yeah, north carolina, and mr bezos he's a contributor leads $10 million, wow, yeah, and I heard something about also, too, that North Carolina is going to be doing too Like they're having a lot of people, a lot of jobs, come through for a lot of people, which helps out the economy so much more in that state too. Yeah, yeah, it's those southern states and those Midwest states right there.
Speaker 2:Yeah, yeah, southern states and those midwest states right there, yeah, yeah, creating jobs and creating opportunity for people just all over america um, not just here in california, but just everywhere, because people need to be able to feed their families and and and be a part of something that's not gonna go away anytime soon. They want, like salon longevity, to be able to take care of their families and be in a nice area to work in. Yes, that generational wealth, exactly exactly.
Speaker 1:And then, if anybody wants to be on the Professional Real Estate Investing Podcast, go to professionalrealestateinvestingcom, to the website. And right now I'm changing my email because, for some reason, the platform that I'm on is acting up, so I'm going to have a new professional email that's going to be sent out so I can get everybody on, because I'm ready to take on some experts All of the mortgage brokers, real estate agents yes, yes, and editors, yes. Indeed, indeed, and on that note, as me and my guy would say everybody have a blessed day.