Office of Senator Mark DeSaulnier SB 1220 Fact Sheet
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SB 1220 (DeSaulnier and Steinberg) As amended on April 16, 2012
PERMANENTLY FUNDING THE HOUSING OPPORTUNITY AND MARKET STABILIZATION (HOMeS) TRUST FUND
Fact Sheet
SUMMARY
This bill imposes a $75 fee on the recordation of each real-estate document, excluding documents related to the sale of a property, in order to permanently fund the Housing Opportunity and Market Stabilization (HOMeS) Trust Fund that will support the development, acquisition, rehabilitation, and preservation of homes affordable to low- and moderate-income households, including emergency shelters, transitional and permanent rental housing, foreclosure mitigation, and homeownership opportunities.
It is estimated that this fee will generate an average of $525 million per year for the HOMeS Trust Fund.
BACKGROUND
Having a healthy housing market that provides an adequate supply of homes affordable to families and individuals at all income levels is critical to the economic prosperity and quality of life in
California. The decline in housing production has played a significant role in creating and prolonging the Great Recession. The lack of sufficient, affordable homes near jobs impedes economic growth and development by making it difficult for California employers to attract and retain
employees. In addition, continued affordability gaps mean that California has the second lowest
homeownership rate in the nation, that minimum wage earners have to work 120 hours per week to afford the average two bedroom rental apartment, and that California has the largest population of homeless persons in the nation.
In the face of these critical needs, California’s investment in affordable housing is declining dramatically. In 2000 and 2006, voters approved roughly $5 billion in housing bonds. These funds
have financed the construction, rehabilitation and preservation of over 11,600 shelter spaces and 57,220 affordable apartments, including 2,500 supportive homes for people experiencing
homelessness. In addition, these funds have helped 57,290 families become or remain homeowners. Nearly all of the voter-approved funding for affordable housing has now been awarded, and no more bond funds are available.
In addition, California’s redevelopment agencies used to generate $1 billion per year for affordable homes as a result of the requirement that they set aside 20% of tax increment for affordable housing. With the elimination of redevelopment agencies, this funding stream has disappeared completely. The loss of these precious funds means that millions of Californians affected by the state’s chronic housing shortage, including seniors, veterans, people experiencing chronic homelessness, working
families, people with mental, physical, or developmental disabilities, agricultural workers, people exiting jails, prisons, and other state institutions, survivors of domestic violence, and former foster and transition-aged youth, will remain unhoused or living in substandard and unaffordable conditions.
California desperately needs a permanent, ongoing source or sources of funding dedicated to affordable housing development. Such investment will create consistency and predictability in the affordable housing market, leverage billions of dollars in private investment, lessen demands on law
enforcement and dwindling health care resources as fewer people are forced to live on the streets or in dangerous substandard buildings, and increase businesses’ ability to attract and retain skilled workers. In addition, a dedicated revenue source will allow a “pay as you go” approach, as opposed
Office of Senator Mark DeSaulnier SB 1220 Fact Sheet
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costs.
STATUS
In the Senate Appropriations Committee.
SUPPORT
California Housing Consortium (sponsor) Housing California (sponsor)
8 past directors of the Department of Housing and Community Development
AARP A&B Painting
A Community of Friends Affirmed Housing Group Affordable Housing Associates Aging Services of California
Alameda County Developmental Disability Council Alliance for Regional Solutions
Alpha Construction Company AMCAL Multi-Housing Amy Hiestad Consulting Anderson and Associates
Asian Pacific Environmental Network BAR Architects
BAYC
Berkeley Food and Housing Project Bernal Heights Neighborhood Center Bonita House
Brayer Electric Company BRIDGE Housing Corporation BRC Advisors
Building Futures with Women and Children Burbank Housing Corporation
Burbank Housing Development Corporation Business Leaders Task Force
Cabrillo Economic Development Corporation Cahill Contractors
California Association of Housing Authorities California Association of Local Housing Finance
Agencies
California Association of Realtors
California Association of Social Rehabilitation Agencies
California Building Industry Association California Coalition for Rural Housing California Coalition for Youth
California Housing Partnership Corporation California Infill Builders Association California Labor Federation
California Rural Legal Assistance Foundation Calistoga Affordable Housing
Caritas Management Corporation Center for Elders’ Independence Center for Sustainable Neighborhoods Center on Policy Initiatives
Central Coast Residential Builders Century Housing
Charities Housing Christian Church Homes City of Burbank
City of Dublin City of Oakland
City and County of San Francisco City of San Leandro
City of Santa Monica
City Heights Community Development Corporation Clifford Beers Housing
CLUE-LA
Collaborative Project Consulting Community Action to Fight Asthma Community Economics
Community Corporation of Santa Monica Community Housing Opportunities Corporation Community Housing Partnership
Community Housing Works Community Interfaith Services Comprehensive Child Development Core Companies
Corporation for Supportive Housing Dahlin Group Architecture Planning Design Electric
EAH Housing
East Bay Asian Local Development Corporation East Bay Housing Organizations
Economic and Planning Systems, Inc. Eden Housing
Enterprise Community Partners Equity Community Builders
Eugene Burger Management Corporation EveryOne Home
First United Methodist Church of Los Angeles Fred Finch Youth Center
Goldfarb Lipman Attorneys Greenbelt Alliance
Habitat for Humanity California Habitat for Humanity East Bay
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Habitat for Humanity Greater San Francisco Hearth Homes
Heffernan Insurance Brokers Housing Advisory Group
Housing Consortium of the East Bay
Housing Leadership Council of San Mateo County Housing Trust of Santa Clara County
ICON Builders
Interfaith Committee for Worker Justice of San Diego County
Islamic Shura Council of Southern California Jacobs Center for Neighborhood Innovation Jamboree Housing Corporation
John Burton Foundation for Children Without Homes
Koning Eizenberg Architecture Larkin Street Youth Services Law Foundation of Silicon Valley League of Women Voters of California League of Women Voters of Marin County Leddy Maytum Stacy Architects
LifeLong Medical Care LifeSTEPS
Local Initiatives Support Corporation Bay Area Local Initiatives Support Corporation Los Angeles Los Angeles Business Council
L.A Family Housing Many Mansions
Marin Environmental Housing Collaborative Marin Partnership to End Homelessness Mental Health America of Los Angeles Mercy Housing
MidPen Housing Mikiten Architecture
Miller, Morton, Caillat, & Nevis
Mill Valley Affordable Housing Committee Mogavero Notestine Associates
Morley Builders Move LA
Napa Valley Community Housing National Equity Fund
National Housing Law Project National Youth Law Center
Natural Resources Defense Council
Neighborhood Housing Services Silicon Valley New Directions
New Image Emergency Shelter for the Homeless Non-Profit Housing Association of Northern
California
North County Lifeline
Opportunity Fund Northern California Orange County Business Council Palm Communities
Palo Alto Housing Corporation Permacity
Project Sentinel Pyatok Architects Public Advocates DRA Infill Coalition
Regional Asthma Management and Prevention Related California
Resources for Community Development Rural Community Assistance Corporation Sacramento Housing Alliance
Sacramento Yolo Mutual Housing Association St. Anne’s
St. Anthony Foundation
St. Ignatius Parish, San Francisco
St. John the Baptist Catholic Church of Baldwin Park
San Diego Building Trades Council Family Housing Corporation
San Diego City Councilman Todd Gloria San Diego Housing Federation
San Diego LGBT Community Center San Diego Organizing Project
San Gabriel Valley Housing and Homeless Coordinating Council
San Luis Obispo County Housing Trust Fund Satellite Housing
Self-Help Enterprises Shelter, Inc.
Sierra Business Council
Silicon Valley Leadership Group
Sonoma County Task Force for the Homeless South County Housing
Southern California Association of Non-Profit Housing
Southern California Housing Collaborative Stand Up for Neighborly Novato
State Building and Construction Trades Council of California
Stocktonians Taking Action to Neutralize Drugs Sun Country Builders
Sunseri Construction
Tenderloin Neighborhood Development Corporation The Arc
Treasure Island Homeless Development Initiative Ubuntu Green
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United Homeless Healthcare Partners Urban Habitat
USA Properties
Veterans Association of North County Walton Construction Services
West Bay Housing Corporation Western Center on Law and Poverty Westport Construction
Yolo Community Care Continuum
OPPOSITION
[NOTE: The California Association of Realtors has committed to support SB 1220 as amended on April 12 and April 16. It is anticipated that most or all of the following local Realtor associations will remove their opposition and possibly support the amended bill. It is further anticipated that the two taxpayer organizations, the bankers, mortgage bankers, land title
association, and the county recorders will remain in opposition.]
Amador County Association of Realtors Asian Real Estate Association of America Bakersfield Association of Realtors Berkeley Association of Realtors
Beverly Hills/Greater Los Angeles Association of Realtors
Big Bear Association of Realtors Burbank Association of Realtors
Calaveras County Association of Realtors California Bankers Association
California Land Title Association
California Mortgage Bankers Association California Taxpayers Association
Chico Association of Realtors
Coastal Mendocino Association of Realtors Conejo Simi Moorpark Association of Realtors Contra Costa Association of Realtors
County Recorders Association of California Del Norte Association of Realtors
Delta Association of Realtors
Desert Communities Association of Realtors Downey Association of Realtors
El Dorado County Association of Realtors Fresno Association of Realtors
Greater Antelope Valley Association of Realtors Howard Jarvis Taxpayers Association
Humboldt Association of Realtors Idlyllwild Association of Realtors Imperial County Association of Realtors Inglewood Board of Realtors
Inland Gateway Association of Realtors Kings County Board of Realtors Lodi Association of Realtors Malibu Association of Realtors Mammoth Lakes Board of Realtors Mariposa County Board of Realtors Merced County Association of Realtors Montebello District Board of Realtors Monterey County Association of Realtors Nevada County Association of Realtors North Bay Association of Realtors
North San Diego County Association of Realtors Oakland Association of Realtors
Ojai Valley Board of Realtors
Orange County Association of Realtors Oroville Association of Realtors Pacific West Association of Realtors Pajaro Valley Association of Realtors
Palm Springs Regional Association of Realtors Palos Verdes Peninsula Association of Realtors Paradise Association of Realtors
Pasadena-Foothills Association of Realtors Paso Robles Association of Realtors Pismo Coast Association of Realtors Placer County Association of Realtors Plumas Association of Realtors
Rancho Southeast Association of Realtors Sacramento Association of Realtors San Benito County Association of Realtors San Francisco Association of Realtors San Luis Obispo Association of Realtors San Mateo County Association of Realtors Santa Barbara Association of Realtors Santa Ynez Valley Association of Realtors Shasta Association of Realtors
Silicon Valley Association of Realtors South Bay Association of Realtors
Southland Regional Association of Realtors South Tahoe Association of Realtors
Southwest Los Angeles Association of Realtors Southwest Riverside County Association of Realtors Sutter-Yuba Association of Realtors
Tehachapi Area Association of Realtors Tulare County Association of Realtors
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Ventura County Coastal Association of Realtors Victor Valley Association of Realtors
West Contra Costa Association of Realtors Yolo County Board of Realtors
Yosemite Gateway Association of Realtors
FOR MORE INFORMATION
Mark Stivers
Senate Transportation and Housing Committee (916) 651-4121
