The Speaker was joined by California Treasurer John Chiang, Los Angeles Mayor Eric Garcetti, as well as Assembly Members Ed Chau (D-Alhambra) Jimmy Gomez (D-Los Angeles) and David Chiu (D-San Francisco).
The plan announced this afternoon seeks to recompense for the loss of over $1 billion per year of redevelopment housing funds, a critical state funding source. Speaker Atkins said that her plan provides a more permanent source of funding that would allow the state to fund existing programs at dependable levels, and create a more reliable and efficient mechanism than the occasional housing bond.
The proposal would:
- Establish a permanent source of funding for affordable housing by placing a $75 fee on real estate transaction documents, excluding home sales;
- Increase the state’s Low Income Housing Tax Credit by $300 million;
- Provide legislation to create a framework for how California will spend any funds received from the National Housing Trust Fund that are expected to flow to states in 2016; and
- Use a portion of the Proposition 47 funds to reduce recidivism through investment in rapid rehousing and housing supports for formerly incarcerated Californians.
According to estimates, the proposal would generate approximately $500 million annually statewide for affordable housing needs via the proposed $75 recordation fee on real estate transactions with the exception of home sales —a provision identical to a failed bill the League supported last legislative session, SB 391 (DeSaulnier)
. The Speaker’s plan also estimates that for every $500 million spent on affordable housing, approximately 29,000 jobs would be created.
Detailed provisions of the bill package have yet to be released, but are expected sometime later this week. The League will monitor the progress of the proposed bill package and inform members of developments as it makes its way through the legislative process.