Buyer and Lender Beware: Financing Measure 37 Property
Eight months after taking effect, Measure 37 still triggers more questions than answers. Perhaps the most significant unresolved question is whether waivers of land use regulations granted to the current owner of property may be transferred to a subsequent owner. Measure 37 property owners, developers or lenders may not realize that waiver transferability has profound implications for the appraisal value of property and its eligibility for financing.
Property owners, developers, and lenders alike should be wary about expectations of large windfalls from the development of property pursuant to Measure 37 waivers. This article explores the issue of waiver trasferability and the implications for real estate financing.