The Tenant Opportunity to Purchase Act (TOPA) is a proposed local law that community members have worked on since 2017. It will finally come to a vote at the Berkeley City Council this fall. As this progressive housing and anti-displacement policy nears the finish line, community support is needed to ensure it passes as introduced and is not watered down by last-minute amendments.
For updates on the timing of the City Council decision process, stay in touch with Berkeley Speaks at BerkSpeak@gmail.com or the Berkeley TOPA Working Group at yes2TOPA@gmail.com.
Berkeley Speaks thanks the Berkeley TOPA Working Group for providing the following analysis of the Tenant Opportunity to Purchase Act. [Ed. Note: the endorsement of specific legislation is the opinion of the writers and not necessarily of Berkeley Speaks.]
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The legacy of redlining practices, racially restrictive housing covenants, discriminatory policies, and high rents continue to impact the Berkeley community. The city government must adopt proactive policies that address systemic racism, displacement, and impoverishment of Black and Indigenous communities and other communities of color. We also need to ensure our limited housing supply is available to those who need it most. TOPA will help retain renters from diverse backgrounds within the community and create pathways to homeownership.
Here’s how it works: TOPA offers residents the chance to stay in their homes when their building is up for sale by granting them the first right to make an offer, or match any purchase offer from the open market. TOPA fully respects property owners’ voluntary participation – it is not eminent domain, and it will never force an owner to sell their property before they choose to do so. Additionally, TOPA does not reduce property values. In San Francisco and Washington D.C., where similar policies have been implemented, property values continue to rise.
The process that TOPA provides offers benefits for everyone involved. Here’s what will happen when certain homes go up for sale:
For tenants, TOPA champions housing stability and reduces the pressures of displacement. By giving tenants the chance to buy their residence, TOPA both saves their living space and also gives them a shot at homeownership. This legislation isn’t merely about immediate protection; it’s about fostering lasting community ties and opening doors to a future rich with possibilities.
For property owners, TOPA would offer an opportunity to sell properties while they are fully tenant-occupied. This would allow owners to avoid the typically costly, time-consuming and contentious process of marketing the property while occupied, offering “buy-outs”, or waiting until tenants move out before listing the property. Property owners can also receive a rebate on the property transfer tax if they sell to the tenants through the TOPA process.
For community members – for all of us – TOPA provides an opportunity to preserve the social fabric of our neighborhoods by preventing the displacement of low- and moderate-income tenants. TOPA purchases would also keep ownership within our community and prevent the extraction of wealth that results from speculative purchasing, ensuring that housing in our community is actually used as shelter and not merely as assets for absentee investors.
TOPA will also create an opportunity for tenants and non-profits to make use of outside government funding that’s intended to acquire homes and make any needed repairs. Currently, the open market moves too quickly for tenants and nonprofits to compete against speculative purchasers who wish to demolish and redevelop these properties, and so this funding cannot be fully utilized. TOPA will complement these “housing preservation” funds by giving tenants the time, as well as the rights, to have a fair shot at purchasing the house where they already live.
A TOPA policy holds this promise because so many in our community have helped to shape, refine, and polish the policy. In particular, the timelines that apply to each step of the TOPA process have been fine-tuned to ensure that tenants and qualified nonprofit organizations have the time needed to successfully make a purchase without unduly disrupting the sales process.
At the same time, the TOPA Working Group worked with community members to understand the myriad sizes and types of housing in Berkeley and to ensure that as many tenants have opportunities to purchase as possible, while avoiding any impact on small property owners.
These vital provisions must remain in place for the full impact of the policy to be realized.
This unusual, inclusive process has brought labor unions, faith-based organizations, community groups, affordable housing developers together with property owners and real estate professionals.
TOPA will not move forward without community support. If you live in Berkeley and are ready to ask City Council to take action on the policy, please write to your City Council member and Mayor today: https://topa.good.do/yes2topa/berkeleyTOPA/. Tell them you favor a strong TOPA that creates opportunity for all, and that they should support the policy as introduced.
If you or an organization you work with is interested in learning more about TOPA, please reach out to the Berkeley TOPA Working Group! We would be thrilled to set up a time to share more about the policy.
The Berkeley TOPA Working Group can be reached at yes2TOPA@gmail.com, and is on the web at https://yes2topa.org/.
The Working Group includes the Northern California Land Trust, Bay Area Community Land Trust, Berkeley Tenants Union, Friends of Adeline, Urban Habitat, and the East Bay Community Law Center.