As we have reported in the past, California Democratic lawmakers, led by Speaker Toni Atkins (D-San Diego), are working to find a way to find monies for more affordable housing.  Earlier this year, AB 1335 was introduced which seeks to create permanent funding for affordable housing through a new real estate fee and increasing tax credits to spur new building.

We are still seeking advice from our members on this measure.  The bill attempts to limit the impact by putting a monetary cap per parcel, and, setting aside the question of whether or not there is nexus for commercial real estate transactions to fund affordable housing, are the mechanisms the bill creates workable?  Is the exclusion of residential properties creating a de facto split roll property tax?

As an industry we want to play a positive role in helping solve issues related to affordable housing in this state, and are amenable to several ideas that have been floated, but ultimately were unable to come to agreement on the measure last year.  We look forward to working with the Speaker on this issue this year, and hope we can be part of a positive solution that works for all parties.

Identifying statewide permanent funding sources to backfill the loss of redevelopment is a critical issue, especially because many local jurisdictions are actively pursuing fee and tax hikes on our industry locally to pay for affordable housing.  We hope a fair and comprehensive solution can be found.

© 2007-2012 Building Owners and Managers Association of California (BOMA Cal)