Title
Approve City Council Letter in Support of SB 2 (Atkins) Building Homes and Jobs Act
Summary
The League of California Cities recommends that cities send letters in support of SB 2 regarding Building Homes and Jobs Act, stating:
ACTION REQUESTED: Please send your CITY LETTER of SUPPORT for SB 2 as soon as possible. A hearing date has not been set for SB 2 as of this date; however, it will be heard in the Senate Transportation and Housing Committee. Senator McGuire sits on the Senate Transportation and Housing committee and he needs to hear from his cities. Sample letter is attached or you may use the ’Leagues Take Action Center <http://www.cacities.org/takeaction> to submit a letter online.
SB 2 (Atkins) Building Homes and Jobs Act:
Background:
Increased and ongoing funding for affordable housing is critical to stabilize the state’s housing development and construction marketplace. If developers are able to rely upon a sustainable source of funding, they will take on the risk that comes with development. The Building Homes and Jobs Act will utilize a pay as you go approach and generate hundreds of millions of dollars annually for affordable housing, supportive housing, emergency shelters, transitional housing and other housing needs through a $75 recordation fee on specified real estate documents.
Although an important source of funding in the past for affordable housing, voter-approved bonds are not a permanent or reliable source. To provide for a stable and permanent source of funding, several states have set up state housing trust funds funded by a document recording fee.
Cities are eager to help spur the construction of new affordable housing units, but with the loss of over $1 billion per year of redevelopment housing funds they lack the resources to do so. This measure would provide an ongoing, permanent source of funding that would allocate 50% of the proceeds to local governments, so that they may be used to address housing needs at the local level.
This measure is a significant step in the right direction.
Talking Points:
• SB 2 would create an ongoing, predictable source of funding to fund the state housing trust fund. Until now California’s housing trust fund has been funded by periodic, voter-approved housing bonds that eventually run dry.
• Funds will be used for the development, acquisition, rehabilitation, and preservation of housing, including transitional and permanent rental housing, workforce housing, supportive services, foreclosure mitigation, and homeownership programs.
• With funds from successful state housing bonds (Prop. 46 and Prop. 1C) exhausted and the complete elimination of redevelopment, the availability of state dollars that leverage private investment and federal and local funds is at a historic low.
• The Building Homes and Jobs Act is a much needed measure that would provide a key incentive for the construction of affordable housing.
Upon approval of this Consent Calendar Item, the attached letter would be transmitted to Senator Atkins.