Lawmakers have returned to Sacramento for the final weeks of the state legislative year. They say the top priority is to pass a package of bills to ease the affordable housing crisis. There is turmoil surrounding the proposal with some legislators complaining that the move will burden the real estate market and others say the housing bill is not big enough to solve the need for affordable housing. Joining me is Guy Marzorati. He is a producer at KQED. Welcome to the program. Thank you for having me. There are three bills that lawmakers are considering to help make housing more affordable in California. They break down into two buckets with proposals addressing the funding side of the funding crisis as well as proposals to get at the streamline and local rules. That is sent bill dirty five. Basically, we make it harder for local governments to block housing development if they have not met the goals of building housing and a pass. You have the funding measures to find construction of affordable housing. It was first proposed around $3 million. That could increase. There is a proposal from Tony Akin's that places a fee of up to $225 on certain transactions like the finance of a mortgage. Those are the pieces that leadership is playing with as they negotiate with Jerry Brown on a final package. SB2 would need a supermajority to pass. All Democrats need to vote for or some Republicans need to vote for it. How much support does it have? I mean, as you said, a two thirds vote, which is a difficult proposition and remember, the legislature has passed a gas tax and a cap and trade and they could trickle down to consumers. For this, there is not likely to be Republican support to raise a fee on those transactions. Moderate Democrats and liberal Democrats have come out against it. That does not bode well for the two thirds vote. Legislative sources said that this is the last sticking point in the housing deal that Democrat leaders are working on as they try to figure out a way to come up with an ongoing source of funding for affordable housing but they are dealing with the two thirds vote. Is there a chance that this will pass? Right now, it seems difficult, given the two thirds threshold. There might be some amendments that could move the bill forward and there are other funding proposals on the table including raising corporate tax rate. That does not set well with Republicans. It may become the major funding source and the bond may go beyond $3 billion that was originally proposed. As legislatures look at what they can do with the measures, if you take a step back and moderation and compromise can be dangerous to your career in Sacramento. Anthony is facing a recall effort in his own Democratic party after the -- after he prevented a vote on the health plan. On the GOP side, the state GOP is earning Chad Mays to step down after he made a deal with Jerry Brown on cap and trade. Why are they basing so much pressure from within their own parties ? It is safe to say that may is a hot seat. You mentioned the party board recommendations last week, that could carry a large weight within the party. Republican caucus could vote to replace Mays. It shows the dangers of crossing party lines which Mays did. I would say there is a strong political center in Sacramento. You see that with the Democratic caucus and the power that they hold. For a lot of Republicans, having Mays make the deal with other Republicans to support the extension. They saw it as giving Democrats a huge political victory, even though Democratic leaders try to emphasize that the Republicans were huge part in getting this done. Getting back to the housing package, Governor Brown is leery of signing big bond issues. What is his stance on the housing package with a big bond issue in SB3? Legislative leaders have made it clear they need a huge funding source to be able to meet the need of affordable housing funding and estate. It might be the easiest way to a college that is by putting forth a bond in front of the voters and let them approve it. It could be that a dollar figure amount is set for a combined amount of bonds that are on the table but the housing by -- there is a separate opposed parks bond that they set a dollar figure for the bond. Leadership will figure out how to distribute the amounts between each. One of the other bills lawmakers are expected to consider? Is the sanctuary state law under consideration ? Definitely. Once housing gets worked out, that will become a major priority. It is carried by Kevin Kelly on. This would limit local law enforcement cooperation with federal immigration enforcement. It has been amended throughout the summer. It needs a majority vote. It has to be with the majority. If Jerry Brown will sign the bill, he has had issues that he wanted to amend and work with the office on but giving the majority vote threshold, it is likely to make it to his desk. There is a crush as the session nears the end. There are other bills that lawmakers are considering. One is not as expensive as what we have been talking about but it could be important. Tell us about Gonzales Fletcher's bill for a voting system upgrade. This is a nether bond proposal that voters would weigh in 2014. -- 20 bit -- voters will go to cast ballots. This bond measure would upgrade old equipment and may have a stronger argument at the ballot in light of attempts to compromise the integrity of the elections and it may make a stronger case. I know one of the bills would affect how late California bars can stay open. This shows that nightlife is a bipartisan issue. This would let counties let bars serve alcohol until 4 AM. It is currently 2 AM. This is carried by Scott Weiner. This is a rare issue when you see Republicans and Democrats on different ends of the spectrum trying to get together to make sure they can keep the night going. A bipartisan issue? Yes. I have been speaking with Guy Marzorati . Thank you. Thank you.
Gov. Jerry Brown and Democratic legislative leaders have promised to tackle California’s affordable housing crisis in their final weeks of work this year by pushing a package that includes regulatory reforms and money for low-income housing.
But some moderate Assembly Democrats are resisting pieces of the deal, particularly a new fee on real estate transaction documents to generate housing dollars.
There’s widespread agreement that a variety of solutions are needed to address the housing shortage, which lawmakers say impacts millions throughout the state at nearly all income levels. Not enough housing is being built to accommodate the growing population and, as a result, California has higher housing prices and higher rates of homelessness than most parts of the United States.
More than a dozen bills are in play, and votes on them could start coming this week. Lawmakers’ opportunity to pass legislation this year ends Sept. 15, when they leave for another recess.
“We need to take up this housing package as soon as we can,” said Assemblyman David Chiu, a San Francisco Democrat who chairs the Assembly’s housing committee. “The fact that the governor, our speaker and the Senate president have committed to a comprehensive housing package is indicative of how committed we are to getting this done this year.”
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Brown, Assembly Speaker Anthony Rendon and Senate President Pro Tempore Kevin de Leon said last month that the final plan will include a bond and an ongoing funding source for affordable housing.
Theresa Winkler, 54, has lived in subsidized housing in Los Angeles for about seven years and said she thinks the government needs to fund developments like the one she lives in. Winkler, who was homeless for much of her life and now works to raise awareness of mental illness and homelessness, said she wouldn’t have been able to stabilize her life without access to housing.
“I understand that recovery centers and halfway housing costs money, but graveyards and hospital beds cost money too, which the taxpayers end up paying anyway,” she said. “If a person is already destitute or at the bottom of the barrel, you can’t just tell them to climb to the top. People need help.”
The housing bond currently on the table would provide $3 billion to fund affordable housing. The money would have to be paid back with interest over time and would require voter approval in 2018.
A “heavier lift” will be establishing an ongoing funding source, said Tom Collishaw, who runs an affordable housing development organization in the Central Valley. He said he has spoken with lawmakers who are undecided about parts of the deal.
The main funding proposal on the table, SB2 by state Sen. Toni Atkins, would impose a $75 fee on real estate transaction documents such as deeds and notices, with a cap of $225 per transaction. It’s expected to generate between $200 million and $300 million annually for affordable housing projects.
“Some of the moderate Democrats are wary of another funding bill that could be perceived as a tax,” Collishaw said. “(But) putting a bond before the voters is probably going to be OK with them.”
Atkins’ bill would exempt documents related to property sales, but would apply to other transactions such as refinancing a mortgage.
Opponents argue it will increase costs for middle-class homeowners.
Some moderate Democrats are reluctant to vote for the new fee after already having to vote on two other big measures that will drive up prices for consumers: a gas tax hike and an extension of the cap-and-trade program that charges polluters, Collishaw said.
Atkins, a San Diego Democrat, said she has been speaking with lawmakers on the fence about her bill after the gas tax and cap-and-trade votes to try to assuage their concerns.
A spokeswoman for Merced Assemblyman Adam Gray, who leads the informal caucus of moderate Assembly Democrats, didn’t respond to a request for comment.
The bill has already passed the Senate but requires a two-thirds majority in the Assembly, meaning if any Democrat votes against the bill, it will need Republican support to pass.
Leadership has promised the housing package will also include efforts to reduce burdensome regulations on housing construction. The main bill on the table to streamline regulations, by San Francisco Democrat Sen. Scott Wiener, would eliminate some local development restrictions in communities that fall behind on their housing goals.
The package could also include tax credits related to affordable housing and measures to pressure communities to comply with existing laws that require them to plan for housing production.
The bills on the table won’t fix the housing shortage, advocates say, but they represent a critical step.
“We have a deep and growing housing crisis in many parts of California where people just can’t afford to live. They can’t afford housing,” Wiener said. “It has to be a high priority.”
