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Breaking News: Lawmakers Rally Votes to Pass Housing Package

Posted by Taylor Thompson in Blog, Legal Articles, Legal Updates, News | 0 comments

 

By Ernie Cowan- NSDCAR Vice President of Government Affairs

 

 

LAWMAKERS RALLY VOTES TO PASS HOUSING PACKAGE

In the waning hours of the 2017 legislative session, state lawmakers rallied the votes necessary to reach agreement on a package of housing bills designed to help alleviate the state’s historic housing crisis. The Legislature’s vote to approve the package will provide up to $4.1 billion in bond funding, plus another $250 million annually from a real estate transaction fee, altogether the largest amount of state financing for affordable housing in California history. The package is projected to generate an estimated 70,000 housing units by 2022.

The vote followed amendments to Senate Bills 2 and 3, which were the subject of intense negotiation as leaders statewide sought to stimulate development and respond to growing public pressure to improve housing affordability. Both SB2 and SB3 required a two-thirds approval by the Assembly to pass.

Building Homes and Jobs Act

The Building Homes and Jobs Act (SB 2), authored by Sen. Atkins (D-San Diego), will create a permanent revenue source to fund affordable housing by charging $75 to $225 in document fees on real estate transactions, such as mortgage refinancing. Home and commercial property sales are exempt from the fee. SB 2 is expected to generate approximately $5 billion over the next five years when matched with federal, local, and private funds.

SB 2 was amended August 29th to provide greater local control over the funds. In 2018, half the funds will be made available to local governments to support community planning and half to the Department of Housing and Community Development to fund programs for people experiencing or at risk of homelessness. Beginning in 2019, local governments will receive 70% of the funds, with the remaining 30% appropriated to the California Housing Finance Agency to create mixed-income multifamily residential housing for lower to moderate income households.

“There is no single silver bullet that will solve the crisis; however, SB 2 is a step in the right direction,” said Atkins following the bill’s passage. “It will generate new, ongoing funding to create permanent supportive housing for people who are experiencing chronic homelessness, providing them with services they need to address their physical and mental health issues and relieving pressure on our courts, jails, and emergency rooms.”

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