Key Affordable Housing Measure Clears Second Hurdle in Senate
On March 15th, the approval of SB 2 (Atkins) by the Senate Governance and Finance Committee signified an important step to beginning to address California’s devastating housing shortage. The Senate Transportation and Housing committee approved the measure last month.
“SB 2 is an important measure to begin to right the ship in California after years of failing to invest in affordable homes. This measure will provide thousands of new affordable rental homes in California while protecting general funds and boosting our economy,” said California Housing Consortium Executive Director Ray Pearl. “We are experiencing a massive housing shortage in California and it is time for a commitment to policies that can affect real change. California’s families, children, seniors, veterans and vulnerable residents deserve nothing less than access to safe and affordable homes.”
California has seen a 69 percent overall decline in state and federal investment in production and preservation of affordable housing since the Great Recession in 2008. A new California Department of Housing and Community Development statewide housing assessment finds that California families are facing a harder time finding a place to live than at any point in our history and homeownership rates in California are at their lowest since the 1940s.
SB 2 (Atkins) would enable thousands of affordable rental homes to be built through a $75 fee on real estate transaction documents, capped at $225 per transaction. Sales of homes and commercial properties would be exempted.
CHC is also calling on lawmakers to approve AB 71 (Chiu), which would end a costly vacation home tax subsidy to provide affordable apartments and homes while protecting the mortgage interest deduction crucial for families to afford their first home. These common-sense measures do not dip into the General Fund and would generate additional federal, local and private investment.