The Berkeley City Council approved amendments to the Building Emissions Saving Ordinance (BESO) with several key modifications in response to concerns about its impact on middle-income and first-time homebuyers.
Thanks to the over 130 members who responded to our call for action and the dozens of members who reached out individually to City Council, we were able to push for meaningful changes that reduce the financial burden on homebuyers.
Key Modifications to the BESO Amendments
Extended Compliance Timeline – Homeowners now have three years to comply, providing more time to plan and budget for upgrades.
Condos and ADUs Exempted – Condominiums and Accessory Dwelling Units (ADUs) will not be subject to BESO requirements.
Reduced Escrow Deposit – The original $7,000 deposit has been lowered to $5,000.
Buyer-Seller Cost Sharing – The deposit must now be split 50/50 between the buyer and seller, reducing the financial burden on homebuyers. (process still in development)
Our Advocacy Made a Difference!
Our messaging resonated with many on the City Council, who acknowledged that the escrow deposit requirement could adversely impact middle-income earners looking to enter the housing market.
However, despite our efforts, many councilmembers glossed over the fact that BESO will have a minimal impact on CO2 emissions and that there are far more effective ways to reduce carbon output which don’t place additional financial barriers on first-time buyers.
What This Means for Homebuyers and Sellers
While these modifications lessen some of the financial strain, BESO still imposes significant costs at the time of sale. Buyers and sellers will need to factor in electrification upgrade requirements and navigate the new compliance process. The Bridge Association of REALTORS® will continue to monitor the implementation of these amendments before they go into effect next year.
Next Steps
After implementation, a two-year evaluation report will assess how BESO is working, including compliance costs and whether additional financial relief options should be considered. We will remain engaged in this process to ensure that the policy does not unfairly burden homeowners and ensure you have clarification on all these new requirements before the 2026 start date.
Your voice made a difference! Thank you to everyone who took action and helped us mitigate some of the adverse effects of the amendments!
Questions? Email kiran@bridgeaor.org
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