California to Address Affordable Housing Issues

Affordable Housing

The State of California is the most populated state in the United States and has several major popular cities. Some of these cities, including San Francisco, San Diego, and Los Angeles, also possess some of the most expensive housing markets in the country. While there is a lot of glamorous real estate in the state, the high real estate pries have made it unaffordable for many people. Due to this concern for many residents in these cities, the state is looking to make some legislative changes that will help to provide further assistance (https://www.usnews.com/news/best-states/california/articles/2017-08-20/h...).

After a short summer break, state legislators will gather back this week to discuss a number of issues. The affordable housing crisis in California is expected to be the most heavily discussed issue. At this point, it appears that the state will do their best to provide more affordable housing by providing a few different regulatory reforms and provide direct money to those that are in need of low-income housing.

The main regulatory control in California will help to reduce the costs that go along with buying a property. At this point, there is no cap on some costs that go into buying or selling a property. The regulatory changes could change this by reducing the potential costs of filing for a deed to no more than $225 per transaction. This could save a buyer or seller hundreds of dollar with each transaction.

The more significant issue at hand is how to provide residents with a more affordable way to buy housing in California, or even rent an apartment. It could also provide incentives to developers. The main way that they will do this is through the issuance of a bond. The current proposal is for a $3 billion bond that will be raised and will be given to buyers and renters in a form of a subsidy. This money would then have to be paid back to tax payers, which makes it a more attractive option compared to simply raising money through a new tax.

Once the proposal is finalized, it will still be a bit away from going into law. The state will have to receive approval from voters, which likely will not be on the ticket for at least another 12 months. Once it is approved, the plan will go into effect within a few months and could start benefiting residents almost immediately thereafter.

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