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Home My WebLink AboutMINUTES - 04032007 - C.55 TO: BOARD OF SUPERVISORS Contra FROM: JOHN CULLEN, COUNTY ADMINISTRATOR Costa DATE: April 3, 2007 °s'A coiiK `� County SUBJECT: SPONSOR AB 239 (DeSAULNIER), RECORDING FEES for a HOUSING TRUST FUND SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: SPONSOR AB 239 (DeSaulnier, principal co-author Torlakson) which would provide authority to Contra Costa County and San Mateo County to establish a dedicated source of revenue for an affordable housing trust fund from an additional fee on recorded documents. BACKGROUND/REASONS FOR RECOMMENDATION: The shortage of affordable housing in Contra Costa County is forcing approximately 50% of all renter households and 30% of all homeowner households to either live in substandard or crowded conditions, or pay an inordinate percentage of their income for housing. In December 2005, only 10% of Contra Costa County residents could afford the median priced home, $570,000. To help address this issue, the County is working with a coalition of elected officials, civic leaders, businesses, faith, labor, nonprofit organizations and builders to develop a plan and strategy to establish a Housing Trust Fund. On November 4, 2003 the Board of Supervisors approved a contract with FaithWorks! to undertake a Countywide Housing Trust Fund Initiative. In October 2005 the Board accepted the Housing Trust Fund Proposal recommended by a broad stakeholder Steering Committee. The core of the Proposal was to pursue establishment of a countywide Housing Trust Fund with base funding through an additional document recording fee. In 2006, Senator Torlakson introduced SB 521 to provide such authority to Contra Costa County only. SB 521 was ultimately not successful in the legislature due, primarily, to opposition from the California Association of Realtors on a statewide basis. The 2007 State Legislative Platform adopted by the Board of Supervisors included sponsoring legislation for the establishment of a document recording fee for a Housing Trust Fund in Contra Costa County. The Housing Trust Fund would be a permanent dedicated funding source for affordable housing developments. Assembly Member DeSaulnier has agreed to carry the bill for Contra Costa County. It is now being considered in the legislature as AB 239. San Mateo County has expressed an interest in joining Contra Costa in this legislation. CONTINUED ON ATTACHMENT: J_YES SIGNATURE /_X��4' ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- -- __L.e+CLCOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE ✓AVPROVE OTHER SIGNATURE(S): ------------------------ -- - ------------- ------- --------------------------------------------------------------------------------------------------------------------ACTION OF BOARD ON Q-3 C '_+ APPROVE AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN UNANIMOUS(ABSENT 1CT AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE AYES: NOES: SHOWN. ABSENT: ABSTAIN: ATTESTED 0*1A:?> O 3- CONTACT: L.DeLaney 5-1097 JOHN CULL N,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR CC: County Administrator/ Cathy Christian(NM)via CAO Jim Kennedy,Redevelopment Steve Weir,Clerk-Recorder 1 DEPUTY AB 239 Sponsor—April 3,2007 Page 2 The County is requesting authority to collect a document recording fee of $25 per transaction for documents greater than one page only and charged only once per real estate transaction. AB 239 would also allow for reimbursement of administrative costs for the Clerk-Recorder's Office. The document recording fee would generate approximately $2.5 million annually for the Contra Costa Housing Trust Fund, based on the current volume of recordings. Generally, Housing Trust Funds leverage revenues at a rate of 10 to 1. Created in the early 1970s and primarily funded with public dollars dedicated to increasing a region's housing supply, housing trusts have produced thousands of units of affordable housing across the nation. There are now more than 400 housing trusts operating in 37 states, and that number is expected to grow as states such as California search for ways to make homeownership a reality for residents. Housing trust funds have become one of the leading vehicles for addressing critical housing needs in this country. Housing trust funds have demonstrated their ability to provide flexible funding for the preservation and development of affordable housing, as well as the ability to thrive throughout economic hardships and tough political climates. Local jurisdictions increasingly turn to housing trust funds as a key tool to meet their housing needs. I�rltiler '�e>�d�vt��Fs be �r4cow'lacis bi(1 arc%s 'Mak�ll ctmv ��tG t9 AB 239, as amended,DeSaulnier. Recording fees: Contra Costa County. SECTION 1. Section 27361.10 is added to the Government Code, to read: 27361.10. (a)In addition to any other recording fees specified in this code,the Contra Costa County Board of Supervisors and the San Mateo Colnity Board of Supervisors may increase the fee for recording every real estate instrument,paper,or notice required or permitted by law to be recorded in Contra Costa County and Sari Mateo County,except those expressly exempted from payment of recording fees. The additional fee, if authorized by the Contra Costa County or Sari Mateo County Board of Supervisors,shall be a flat fee not to exceed twenty-fivc�ldollars($25)not-eTceed on -dollar-($1)-pe4Lf�age-for each-}aa-g��tli"Pst page ofe recorded document in excess of one page. When it can be readily determined that multiple documents relate to one transaction the authorized fee shall be charged only once. (b)(1)All moneys raised pursuant to subdivision(a)shall be deposited in an account established by the Contra Costa County Board of Supervisors, if it authorizes the additional fee,to be used to assist in the development of affordable housing for very low income households, lower income households,and moderate-income households. (2)For purposes of this section,the following definitions apply: (A) "Very low income household" means a household whose income does not exceed the very low income limits applicable to Contra Costa County and San Mateo CAuntV adjusted for household size,as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50105 of the Health and Safety Code. (B) "Lower income household" means a household whose income does not exceed the lower income limits�applicable to Contra Costa County and San Mateo County, adjusted for household size, as published and periodically updated by the State Department of Housing and Community Development,pursuant to Section 50079.5 of the Health and Safety Code. (C) "Moderate-income household"means persons and families whose income does not exceed the moderate income limits applicable to Contra Costa County and San Mateo County,adjusted for household,size, as published and periodically updated by the State Department of Housing and Community Development pursuant to Section 50093 of the Health and Safety Code. (c)All moneys raised pursuant to subdivision(a),after deduction of any actual and reasonable and necessary administrative costs incurred by the Counh�Clerk-Recorder shall be used only to help finance the construction, rehabilitation, or purchase of housing for very low income households, lower income households,and moderate-income households and to fund any local matching contributions required pursuant to federal law. (d)Housing constructed'with funds made available pursuant to this section shall meet at least one of the following requirements: (1)Be housing located within the urban limit line. (2)Be multifamily with an average density of at least 14 units per acre. (3)Be designed in a manner that complements existing neighborhoods, promotes social interaction, is pedestrian friendly,and allows for the potential for mixed use. SEC. 2. The Legislature"finds and declares that there are unique circumstances concerning the need for developing more affordable housing for very low income households, lower income households, and moderate-income households in Contra Costa County and San Mateo County necessitating the enactment of the procedures contained in this act. It is therefore declared that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the Constitution, and that the enactment of this act as a special law is necessary.