California’s State Legislature recently passed Senate Bills 2, 3, and 35 all related to affordable housing. The bills await Governor Brown’s signature before becoming law and the Governor has indicated previously that he would be willing to sign them.
SB 2 creates a new revenue stream of roughly $250 million per year to aid in financing low-income housing developments. The revenue is derived from a new $75 fee on mortgage refinances and other real estate transactions except for home and commercial property sales. During the 2018 calendar year, 50% of the revenue will go to local governments for specified purposes and 50% will go to the state Department of Housing and Community Development to be used towards alleviating homelessness. During subsequent years, that ratio increases to 70% for local governments and changes purposes to a degree, with objectives including low- and moderate-income households as well as owner-occupied workforce housing.
SB 3 will put a $4-billion bond on the November 2018 ballot, with $3 billion to subsidize the construction of low-income housing and the remaining $1 billion for home loans for veterans.
SB 35 bill does a number of things to streamline the zoning process, including doing away with conditional use permits for affordable multifamily housing and replacing it with a “streamlined ministerial process.” The bill also ensures measures to document and record the production of housing.
