Two Committees within the California State Assembly, the Committee on Housing and Community Development and the Labor and Employment Committee, recently approved the California Homes and Jobs Act of 2013 (SB 391). The measure, which would establish the California Homes and Jobs Trust Fund in order to build more affordable housing in the state, was approved by the Housing Committee by a vote of 4-2-1 and made it through the Labor Committee by a vote of 5-2.
Affordable housing production in California has decreased in the last couple years due in part to the complete elimination of the redevelopment authorities (RDAs). SB 391, which was originally introduced by state Senator Mark DeSaulnier (D-Concord), would place a small ($75) recordation fee on real estate transactions, of which the proceeds would be deposited into the California Homes and Jobs Trust Fund to be used to fund affordable housing development in communities across the state. SB 391 also provides that the Trust Fund dollars may be used to administer housing programs and towards the cost of periodic audits. Advocates suggest that this fee could generate an estimated $500 million annually in state “seed money”, which could then leverage an additional $2.78 billion in federal and local funding.
Principal co-authors and sponsors to SB 391 are Assemblymembers Toni Atkins and Raul Bocanegra and co-authors are Senators Lou Correa, Jerry Hill, Mark Leno, Ted Lieu, Fran Pavley, and Assemblymembers Tom Ammiano, Richard Bloom, Susan Bonilla, Rich Gordon, Kevin Mullin, and Sharon Quirk-Silva.
SB 391 now heads to Assembly Appropriations Committee for consideration.