California SB 2 Real Estate Transaction Fee Hike An Attempt To Fund Affordable Housing DevelopmentUncategorized
California Senate Bill 2 was was enrolled and presented to Governor Jerry Brown on September 21, 2017. As it awaits his decision to sign or not, and he has indicated he will sign it along with other legislation designed to address the affordable housing crisis in California, what is it and why is it important?
If signed, California SB 2 will put into effect a $75 fee on real estate transaction documents when they are filed, capped at $225 per transaction. The fee would not apply to sales of residential and commercial but instead to other transactions like mortgage refinancing.
The purpose of the fee hike is to attempt to address the affordable housing crisis in California by raising money for affordable housing development, an estimated $250 annually. A quick review of this 2017 Top 10 list of most expensive cities to live in around the WORLD—not just here in the USA but the world!—and you’ll find three California cities on the list: San Francisco, Los Angeles and San Jose.
So, while there is consensus on the housing crisis’ existence, there are differing perspectives on the bill and its impact. Those perspectives are explored here in two July 2017 articles, one from a U.S. News & World Report article, and one here from the San Jose Mercury News.