On Thursday, July 6, the California state Senate approved of a new fee on real estate documents. The $75 fee would be placed on real estate law documents such as notices and deeds and would come with a cap of $235 per transaction.
The legislation was created as a means of generating $200 to $300 million annually for affordable housing in California.
“When you use this money to build more housing, you generate more income tax, more jobs and it helps spur the economy,” said Senator Toni Atkins to the US News. “This will make a difference for middle income families.”
It will also make a difference for low income families as California’s rate of homelessness continues to be disproportionately high. Foreclosure in business property law has increased in California as middle income families struggle to find housing that is affordable what with residential zoning restrictions rendering houses out of their budget.
Zoning restrictions have been determined to take a large part in the foreclosure crisis. When too much housing is placed in the same high-price zone, homebuyers who are unable to move to another area are forced to purchase a home they cannot afford only to fall to foreclosure within a series of years.
Republican senators disagreed with Atkins regarding the real estate document fees and how they would help middle income families. “I want to solve that problem, but I can’t do it on the backs of the emerging people who have worked hard, trying to get their first house or move their family into a home that would accommodate their growing family,” said Senator Joel Anderson to the US News.
Many Republicans as well as some Democrats expressed concern over the regulations of housing construction in California, seeing the spending on subsidized housing as a better potential start to fixing the housing market rather than placing fees on real estate documents.
The legislation of the real estate document fee has been passed on to the Assembly where it will await for approval or denial. Whichever the decision, change is essential for the success of the housing market. In 2013, there was at least one foreclosure reported out of every 96 homes.
However, a foreclosure can be stopped before it starts. For assistance with during your foreclosure process, eviction process, or boundary dispute contact Dijulio Law Group for a consultation.