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League Supports Key Elements of Assembly Speaker’s Affordable Housing Funding Package

Cities Encouraged to Support AB 35 and AB 1335

April 1, 2015
The League has joined a coalition in support of an effort led by Assembly Speaker Toni Atkins (D-San Diego) to dramatically expand state resources for affordable housing.
 
Other coalition members include the California Building Industry Association, the California Housing Consortium and the Western Center on Law and Poverty.

With the loss of redevelopment and the exhaustion of past state affordable housing bond funds, California has virtually no resources to construct affordable housing. AB 35 and AB 1335 propose to fill that void with up to $1 billion per year in affordable housing funds. AB 35 (Chiu and Atkins) would increase available affordable housing tax credits by $300 million and AB 1335 (Atkins) would provide a permanent source of funding for affordable housing generating up to $700 million per year.  
 
AB 35 (Chiu/Atkins), proposes to increase the state’s Low Income Housing Tax Credit from $70 to $370 million annually, providing a $300 million boost to this popular program that is always heavily oversubscribed. 
 
AB 1335 (Atkins), the Building Homes and Jobs Act, would establish a permanent source of funding for affordable housing by placing a $75 fee on real estate transaction documents, excluding home sales. This proposal is similar to SB 391 (DeSaulnier) of the 2013-14 Legislative Session, which the League also supported, and is projected to generate up to $700 million annually while leveraging billions more in federal, local, and bank investments.
 
The Building Homes and Jobs Act makes legislative findings about the need for permanent, ongoing funding for affordable housing. Total fees on any transaction are capped at $225. Revenues from this fee, less county administrative costs, would be sent quarterly to the Department of Housing and Community Development for deposit in the new Building Homes and Jobs Fund and spent for affordable housing, home ownership opportunities, and other housing-related programs. The bill imposes additional auditing and reporting requirements.
 
The fact sheets below provide additional details on the bills. Next Steps
 
AB 35 is set to be heard in the Assembly Housing and Community Development Committee on April 15 at 9 a.m. 
 
AB 1335 has also been referred to the Assembly Housing and Community Development Committee and is set to be heard on April 29. 
 
Cities are encouraged to send the authors support letters on AB 35 and AB 1335. 
 
Additional information on AB 35, along with the League’s support letter and a sample support letter are available online.
 
Additional information on AB 1335, along with the League’s support letter and a sample support letter are available online.


 
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