The California state Senate approved a new fee on some real estate transaction documents that is designed to create a new revenue stream for the creation of affordable housing.
The Associated Press reports
the legislation adds a $75 fee on documents including deeds and notices, with a cap of $225 per transaction. This new fee is projected to bring in between $200 and $300 million annually, which will be used for affordable housing developments. The bill exempts documents related to residential and commercial property sales, but would apply to mortgage refinancing.
The bill passed the Senate in a 27-12 with all Democratic votes and has been sent to the state Assembly.
"When you use this money to build more housing, you generate more income more tax, more jobs and it helps spur the economy," said Sen. Toni Atkins, the San Diego Democrat who authored the bill. "This will make a difference for middle income families."