June 5, 2017

June 2017 Legislative Update


June 2nd was the last day for bills to make it out of their house of origin.  Here is a brief status update on a few key bills that SV@Home has supported:

Two priority bills – SB 2 and AB 71 – are still alive though they did not move from their house of origin.  SB 2 is the “perm source” bill, which would create a $75 document recording fee on non-point of sale real estate transactions to fund affordable housing.  AB 71 would expand the State’s Low Income Housing Tax Credit program by eliminating the mortgage interest deduction on vacation homes. Because the bills are both fiscal bills requiring a 2/3rds vote, they weren’t required to meet the June 2nd deadline and can be revisited at a later date.  Their fate is uncertain, however, as after the recent vote to increase taxes for transportation, members have expressed concern about additional tax increases. Fingers crossed.

The following bills made it out of their house of origin and are now winding their way through the process:

  • AB 1397 – Assemblymember Low’s bill to require local governments to maintain an inventory of land and adequate sites for housing sufficient to meet their need for housing at all income levels passed on to theSenate with a vote of 51 Yay, 25 Nay, and 4 not voting.
  • SB 35 – Senator Wiener’s streamlining bill passed the Senate with a vote of 25 Yay, 12 Nay, and 3 not voting.  The bill was amended to require that large projects use skilled and trained labor and small projects pay prevailing wage.  100% affordable developments are exempt from labor requirements.  More amendments are expected as the bill moves through the Assembly.
  • SB 3 – Senator Beall’s $3 billion bond bill passed on to the Assembly with a vote of 30 Yay, 9 Nay, and 1 not voting.  The bill’s fate is uncertain, however, as the Governor has indicated that he will veto any bond measures.
  • AB 1505 – the “Palmer Fix” bill passed the Assembly with a vote of 47 Yay, 24 Nay, and 9 not voting, and is now in Senate Transportation and Housing.

Late last week, the Budget Conference Committee took action that doomed the $400 million in General Funds proposed by the Assembly, so funding for affordable housing this year is dependent on the movement of SB 2, SB 3, or AB 71.

Photo: Wayne Hsieh via Flickr