Proposals include eliminating the state mortgage interest deduction on second or vacation homes
Legislators in Sacramento recently introduced 130 bills to avert what could be the worst housing crisis in California. This comes amid the Bay Area’s standing reputation as the country’s most expensive housing market.
“In the Bay Area in recent years, we’ve had the highest home prices, the highest rents and the highest eviction rates in the country,” Assemblyman David Chiu (D-San Francisco) told The Mercury News. “But now … every pocket of California is experiencing this crisis.”
Chiu, chair of the Assembly Committee on Housing and Community Development, penned Assembly Bill 71, which aims on getting rid of the state mortgage interest deduction on second or vacation homes, according to the report. This will cause the state to lose an annual revenue loss of $300m, but the bill would help redirect $300mn per year to affordable housing.
Another bill – Senate Bill 2 – by Sen. Toni Atkins (D-San Diego) would put a $75 recording fee on real estate documents and could generate up $150m to $300m in annual revenues.
According to the California Department of Housing and Community Development the Golden State built an average of 80,000 homes per year over the last decade. To keep up with demand 180,000 homes per year need to be constructed.
Related stories:
Bay Area residents in search of cheaper pastures – Redfin report
Expensive housing could drive millennials away from Bay Area
“In the Bay Area in recent years, we’ve had the highest home prices, the highest rents and the highest eviction rates in the country,” Assemblyman David Chiu (D-San Francisco) told The Mercury News. “But now … every pocket of California is experiencing this crisis.”
Chiu, chair of the Assembly Committee on Housing and Community Development, penned Assembly Bill 71, which aims on getting rid of the state mortgage interest deduction on second or vacation homes, according to the report. This will cause the state to lose an annual revenue loss of $300m, but the bill would help redirect $300mn per year to affordable housing.
Another bill – Senate Bill 2 – by Sen. Toni Atkins (D-San Diego) would put a $75 recording fee on real estate documents and could generate up $150m to $300m in annual revenues.
According to the California Department of Housing and Community Development the Golden State built an average of 80,000 homes per year over the last decade. To keep up with demand 180,000 homes per year need to be constructed.
Related stories:
Bay Area residents in search of cheaper pastures – Redfin report
Expensive housing could drive millennials away from Bay Area
