Affordable Housing in California - Back to the Basics
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1 SB 1220 (DeSaulnier and Steinberg) As amended on April 16, 2012 PERMANENTLY FUNDING THE HOUSING OPPORTUNITY AND MARKET STABILIZATION (HOMeS) TRUST FUND Fact Sheet SUMMARY This bill imposes a $75 fee on the recordation of each real-estate document, excluding documents related to the sale of a property, in order to permanently fund the Housing Opportunity and Market Stabilization (HOMeS) Trust Fund that will support the development, acquisition, rehabilitation, and preservation of homes affordable to low- and moderate-income households, including emergency shelters, transitional and permanent rental housing, foreclosure mitigation, and homeownership opportunities. It is estimated that this fee will generate an average of $525 million per year for the HOMeS Trust Fund. BACKGROUND Having a healthy housing market that provides an adequate supply of homes affordable to families and individuals at all income levels is critical to the economic prosperity and quality of life in California. The decline in housing production has played a significant role in creating and prolonging the Great Recession. The lack of sufficient, affordable homes near jobs impedes economic growth and development by making it difficult for California employers to attract and retain employees. In addition, continued affordability gaps mean that California has the second lowest homeownership rate in the nation, that minimum wage earners have to work 120 hours per week to afford the average two bedroom rental apartment, and that California has the largest population of homeless persons in the nation. In the face of these critical needs, California s investment in affordable housing is declining dramatically. In 2000 and 2006, voters approved roughly $5 billion in housing bonds. These funds have financed the construction, rehabilitation and preservation of over 11,600 shelter spaces and 57,220 affordable apartments, including 2,500 supportive homes for people experiencing homelessness. In addition, these funds have helped 57,290 families become or remain homeowners. Nearly all of the voter-approved funding for affordable housing has now been awarded, and no more bond funds are available. In addition, California s redevelopment agencies used to generate $1 billion per year for affordable homes as a result of the requirement that they set aside 20% of tax increment for affordable housing. With the elimination of redevelopment agencies, this funding stream has disappeared completely. The loss of these precious funds means that millions of Californians affected by the state s chronic housing shortage, including seniors, veterans, people experiencing chronic homelessness, working families, people with mental, physical, or developmental disabilities, agricultural workers, people exiting jails, prisons, and other state institutions, survivors of domestic violence, and former foster and transition-aged youth, will remain unhoused or living in substandard and unaffordable conditions. California desperately needs a permanent, ongoing source or sources of funding dedicated to affordable housing development. Such investment will create consistency and predictability in the affordable housing market, leverage billions of dollars in private investment, lessen demands on law enforcement and dwindling health care resources as fewer people are forced to live on the streets or in dangerous substandard buildings, and increase businesses ability to attract and retain skilled workers. In addition, a dedicated revenue source will allow a pay as you go approach, as opposed Page 1
2 to issuing bonds that require additional interest costs. STATUS In the Senate Appropriations Committee. SUPPORT California Housing Consortium (sponsor) Housing California (sponsor) 8 past directors of the Department of Housing and Community Development AARP A&B Painting A Community of Friends Affirmed Housing Group Affordable Housing Associates Aging Services of California Alameda County Developmental Disability Council Alliance for Regional Solutions Alpha Construction Company AMCAL Multi-Housing Amy Hiestad Consulting Anderson and Associates Asian Pacific Environmental Network BAR Architects BAYC Berkeley Food and Housing Project Bernal Heights Neighborhood Center Bonita House Brayer Electric Company BRIDGE Housing Corporation BRC Advisors Building Futures with Women and Children Burbank Housing Corporation Burbank Housing Development Corporation Business Leaders Task Force Cabrillo Economic Development Corporation Cahill Contractors California Association of Housing Authorities California Association of Local Housing Finance Agencies California Association of Realtors California Association of Social Rehabilitation Agencies California Building Industry Association California Coalition for Rural Housing California Coalition for Youth Page 2 California Housing Partnership Corporation California Infill Builders Association California Labor Federation California Rural Legal Assistance Foundation Calistoga Affordable Housing Caritas Management Corporation Center for Elders Independence Center for Sustainable Neighborhoods Center on Policy Initiatives Central Coast Residential Builders Century Housing Charities Housing Christian Church Homes City of Burbank City of Dublin City of Oakland City and County of San Francisco City of San Leandro City of Santa Monica City Heights Community Development Corporation Clifford Beers Housing CLUE-LA Collaborative Project Consulting Community Action to Fight Asthma Community Economics Community Corporation of Santa Monica Community Housing Opportunities Corporation Community Housing Partnership Community Housing Works Community Interfaith Services Comprehensive Child Development Core Companies Corporation for Supportive Housing Dahlin Group Architecture Planning Design Electric EAH Housing East Bay Asian Local Development Corporation East Bay Housing Organizations Economic and Planning Systems, Inc. Eden Housing Enterprise Community Partners Equity Community Builders Eugene Burger Management Corporation EveryOne Home First United Methodist Church of Los Angeles Fred Finch Youth Center Goldfarb Lipman Attorneys Greenbelt Alliance Habitat for Humanity California Habitat for Humanity East Bay
3 Habitat for Humanity Greater Los Angeles Habitat for Humanity Greater San Francisco Hearth Homes Heffernan Insurance Brokers Housing Advisory Group Housing Consortium of the East Bay Housing Leadership Council of San Mateo County Housing Trust of Santa Clara County ICON Builders Interfaith Committee for Worker Justice of San Diego County Islamic Shura Council of Southern California Jacobs Center for Neighborhood Innovation Jamboree Housing Corporation John Burton Foundation for Children Without Homes Koning Eizenberg Architecture Larkin Street Youth Services Law Foundation of Silicon Valley League of Women Voters of California League of Women Voters of Marin County Leddy Maytum Stacy Architects LifeLong Medical Care LifeSTEPS Local Initiatives Support Corporation Bay Area Local Initiatives Support Corporation Los Angeles Los Angeles Business Council L.A Family Housing Many Mansions Marin Environmental Housing Collaborative Marin Partnership to End Homelessness Mental Health America of Los Angeles Mercy Housing MidPen Housing Mikiten Architecture Miller, Morton, Caillat, & Nevis Mill Valley Affordable Housing Committee Mogavero Notestine Associates Morley Builders Move LA Napa Valley Community Housing National Equity Fund National Housing Law Project National Youth Law Center Natural Resources Defense Council Neighborhood Housing Services Silicon Valley New Directions New Image Emergency Shelter for the Homeless Non-Profit Housing Association of Northern California Ubuntu Green Page 3 North County Lifeline Opportunity Fund Northern California Orange County Business Council Palm Communities Palo Alto Housing Corporation Permacity Project Sentinel Pyatok Architects Public Advocates DRA Infill Coalition Regional Asthma Management and Prevention Related California Resources for Community Development Rural Community Assistance Corporation Sacramento Housing Alliance Sacramento Yolo Mutual Housing Association St. Anne s St. Anthony Foundation St. Ignatius Parish, San Francisco St. John the Baptist Catholic Church of Baldwin Park San Diego Building Trades Council Family Housing Corporation San Diego City Councilman Todd Gloria San Diego Housing Federation San Diego LGBT Community Center San Diego Organizing Project San Gabriel Valley Housing and Homeless Coordinating Council San Luis Obispo County Housing Trust Fund Satellite Housing Self-Help Enterprises Shelter, Inc. Sierra Business Council Silicon Valley Leadership Group Sonoma County Task Force for the Homeless South County Housing Southern California Association of Non-Profit Housing Southern California Housing Collaborative Stand Up for Neighborly Novato State Building and Construction Trades Council of California Stocktonians Taking Action to Neutralize Drugs Sun Country Builders Sunseri Construction Tenderloin Neighborhood Development Corporation The Arc Treasure Island Homeless Development Initiative
4 United Cerebral Palsy in California United Homeless Healthcare Partners Urban Habitat USA Properties Veterans Association of North County Walton Construction Services West Bay Housing Corporation Western Center on Law and Poverty Westport Construction Yolo Community Care Continuum OPPOSITION [NOTE: The California Association of Realtors has committed to support SB 1220 as amended on April 12 and April 16. It is anticipated that most or all of the following local Realtor associations will remove their opposition and possibly support the amended bill. It is further anticipated that the two taxpayer organizations, the bankers, mortgage bankers, land title association, and the county recorders will remain in opposition.] Amador County Association of Realtors Asian Real Estate Association of America Bakersfield Association of Realtors Berkeley Association of Realtors Beverly Hills/Greater Los Angeles Association of Realtors Big Bear Association of Realtors Burbank Association of Realtors Calaveras County Association of Realtors California Bankers Association California Land Title Association California Mortgage Bankers Association California Taxpayers Association Chico Association of Realtors Coastal Mendocino Association of Realtors Conejo Simi Moorpark Association of Realtors Contra Costa Association of Realtors County Recorders Association of California Del Norte Association of Realtors Delta Association of Realtors Desert Communities Association of Realtors Downey Association of Realtors El Dorado County Association of Realtors Fresno Association of Realtors Page 4 Greater Antelope Valley Association of Realtors Howard Jarvis Taxpayers Association Humboldt Association of Realtors Idlyllwild Association of Realtors Imperial County Association of Realtors Inglewood Board of Realtors Inland Gateway Association of Realtors Kings County Board of Realtors Lodi Association of Realtors Malibu Association of Realtors Mammoth Lakes Board of Realtors Mariposa County Board of Realtors Merced County Association of Realtors Montebello District Board of Realtors Monterey County Association of Realtors Nevada County Association of Realtors North Bay Association of Realtors North San Diego County Association of Realtors Oakland Association of Realtors Ojai Valley Board of Realtors Orange County Association of Realtors Oroville Association of Realtors Pacific West Association of Realtors Pajaro Valley Association of Realtors Palm Springs Regional Association of Realtors Palos Verdes Peninsula Association of Realtors Paradise Association of Realtors Pasadena-Foothills Association of Realtors Paso Robles Association of Realtors Pismo Coast Association of Realtors Placer County Association of Realtors Plumas Association of Realtors Rancho Southeast Association of Realtors Sacramento Association of Realtors San Benito County Association of Realtors San Francisco Association of Realtors San Luis Obispo Association of Realtors San Mateo County Association of Realtors Santa Barbara Association of Realtors Santa Ynez Valley Association of Realtors Shasta Association of Realtors Silicon Valley Association of Realtors South Bay Association of Realtors Southland Regional Association of Realtors South Tahoe Association of Realtors Southwest Los Angeles Association of Realtors Southwest Riverside County Association of Realtors Sutter-Yuba Association of Realtors Tehachapi Area Association of Realtors Tulare County Association of Realtors
5 Tuolumne County Association of Realtors Ventura County Coastal Association of Realtors Victor Valley Association of Realtors West Contra Costa Association of Realtors Yolo County Board of Realtors Yosemite Gateway Association of Realtors FOR MORE INFORMATION Mark Stivers Senate Transportation and Housing Committee (916) Page 5
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