Our current massive city budget shortfalls threaten not only essential city services but also existing jobs for many dedicated city staff. Oakland is looking at a historic $122 million dollar deficit while Berkeley is facing a $30 million dollar deficit. During the financial crisis Oakland had to lay off 1500 city staff,

For the city, TOPA means drastically reduced revenue. Buildings with deed restrictions limiting rent levels and future sale price will be worth hundreds of thousands less compared to those without. Lower property value also means lower property tax revenue for the county and city. Special interest developers also aim to exempt their buildings entirely from paying property taxes. When special interest exempt their buildings from property taxes, critical city programs supporting seniors and libraries would be at risk while homeowners would have to pick up the slack in property taxes.

TOPA’s interference at the point of sale and open market pricing, will also result in fewer numbers of transactions as most residents would be hurt by selling at a drastic loss due to extended time delays and increased legal fees, killing city revenue even more. There is a whole entire local economy tied to city revenue with multiple weak links that will quickly unravel. While facing reduced revenue streams, the city will also be faced with defending expensive lawsuits for infringing on property rights, privacy rights, and basic constitutional rights. The TOPA proposal in Richmond and a prior draft of Berkeley’s TOPA legislation allows for a city-approved appraiser to set property sales price. Allowing the city government to dictate property the sales price is hugely problematic legally, as is the forced deed restrictions components placed on properties.