What is TOPA?
TOPA empowers tenants with options when the property they live in is going to be sold (see 3/16/21 Berkeleyside Op-ed). Tenants can purchase the property or assign rights to a qualified organization (QO), such as a community land trust, nonprofit housing developer or cooperative. Tenants will be able to explore different ownership options (limited equity homes, condos, cooperatives, etc.) as well as choose to remain renters at an affordable rate.
Right of first offer & refusal – TOPA will create legal rights for tenants to make the first offer to purchase the property they live in when the owner decides to sell. Alternatively, tenants can assign their rights to a QO to make an offer. If tenants waive their rights, QOs have an opportunity to make an offer on the property, for the purpose of stabilizing housing for the tenants and preserving the property as permanently affordable. If a seller rejects the initial offer from tenants/QO and subsequently receives a third-party contract on the market, then tenants/QO (whoever made the initial offer) have the right to match the offer and purchase the property.
Extended timelines – Alameda County is one of the least affordable housing markets in the country. The rapid rate of home sales coupled with cash offers, results in bidding wars that privileges all-cash investors over buyers who use conventional financing. TOPA levels the playing field with timelines that make it possible for tenants and QOs to organize, negotiate a contract, secure financing, and close a deal. (See timelines and timeline FAQs)
Technical assistance – If tenants decide to make an offer, they will work with a Supportive Partner (such as a tenant rights nonprofit, legal service provider, etc.) to understand the steps for completing a purchase or assigning rights. Supportive Partners will help tenants understand financing and ownership options.
Permanent affordability - Many tenant TOPA purchases will happen with subsidy that requires that TOPA buyers keep the property affordable for generations to come. And when qualified organizations are the TOPA buyer, TOPA requires that they commit to keeping properties purchased through TOPA permanently affordable for future generations, regardless of the funding source. TOPA will lead to the creation of more permanently affordable housing in a place that is experiencing an affordable housing shortage.*
*Note: This reflects proposed changes to the policy; see “Proposed Changes to the TOPA Policy.”
Berkeley TOPA Timeline
Since 2015 - Tenants rights groups, community law centers, and land trusts began exploring TOPA as an anti-displacement strategy locally and regionally, using Washington D.C.’s TOPA and other similar policies as models.
Starting in 2019 -The East Bay Community Law Center (EBCLC), Northern California Land Trust, and Bay Area Community Land Trust worked closely with Mayor Jesse Arreguin, and consulted with tenants, tenant advocates, lending institutions, real estate brokers and others, to develop a TOPA policy tailored for Berkeley – one that stays true to Berkeley’s vision of democratic, community controlled affordable housing.
Early 2020 - The City of Berkeley and EBCLC are awarded a Partnership for the Bay’s Future Challenge Grant to support implementation of TOPA.
February 20, 2020 – Mayor Arreguin announced TOPA at a Southwest Berkley property where tenants had partnered with a community land trust to purchase their homes and keep them permanently affordable.
March 5, 2020 – TOPA was presented to the Land Use, Housing and Economic Development Committee followed by public comment and initial discussion/questions by committee members. See detailed background information and legislation here, as well as the presentation.
January 27, 2021 - Community Forum on Berkeley’s TOPA Proposal - Preventing Displacement & Creating Homeownership Opportunity - see YouTube video here.
March 18, April 26, May 6 & May 20, 2021 - TOPA was reintroduced and discussed at the Land Use and Economic Development Committee on March 18, April 26, and May 6. TOPA was voted out of the committee on May 20th - see the bottom of this webpage for agendas and corresponding documents for all of these meetings.
January 27, 2022 - An updated version of TOPA will be discussed at Work Session of the Berkeley City Council - see agenda for Jan 27 meeting here.
Stay tuned for future events and public meetings, and visit the Take Action webpage!