California bill: $75 fee would help fund affordable housing

A new bill could add an additional $75 per page for real estate documents.

Refinancing or changing the title on your home soon? 

Well, a new bill in the state Legislature would add a $75 fee to these real estate recording documents.

SB 2 would establish an affordable housing trust fund using the fee revenue, which is capped at $225 -- in other words, three pages.

"All in all, throughout Sacramento County and the surrounding areas, we have seen a lack of supply, which has created this crisis," Sacramento Association of Realtors President Franco Garcia said. 

Under the proposal, a governing board -- including six people appointed by the governor -- would oversee the money. The fee excludes property sales. 

Here's how the money would be doled out: 

  • 20 percent for workforce housing.
  • 10 percent for affordable housing and renting opportunities for agricultural workers and their families.
  • The remaining 70 percent would include rental housing for low-income households, transitional housing and buying up foreclosed and/or vacant homes. 

According to state Senate floor analysis, the bill creates "a permanent and ongoing source of funding." 

If approved, the law would take effect Jan. 1, 2018. 

The legislation is expected to go before a full vote in the state Senate by week's end. 

© 2017 KXTV-TV


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