sr-032712-3kCity of City Council Report
Santa Monica
City Council Meeting: March 27, 2012
Agenda Item: 3—
To: Mayor and City Council
From: Andy Agle, Director of Housing and Economic Development
Subject: Letter of Support for SB 1220
Recommended Action
Staff recommends that the Council support Senate Bill 1220, the Housing Opportunity
Trust Act of 2012, and forward a letter of support to our Sacramento delegation.
Executive Summary
This report recommends that the Council support the Housing Opportunity Trust Fund
Act of 2012 (SB1220). The bill would establish a permanent source of funding for
affordable housing by establishing a $75 fee on the recordation of all non - exempt real
estate transactions.
Background
On December 29, 2011, the California Supreme Court issued their opinion to uphold
AB 26, dissolving redevelopment agencies effective February 1, 2012. The
consequences of AB 26 are profound as nearly 75 percent of the city's affordable
housing production and preservation activities were financed by redevelopment funds.
To address the loss of this critical funding source and establish a permanent source of
funding for affordable housing, Senate President Pro Tern Darrell Steinberg and
Senator Mark DeSaulnier introduced SB 1220. The California Housing Consortium and
Housing California joined together to sponsor the bill.
Discussion
SB 1220 would impose a $75 fee on the recordation of each real- estate document.
These funds will be deposited into a state - administered Housing Opportunity and
Market Stabilization (HOMES) Trust Fund to support the development, acquisition,
rehabilitation, and preservation of housing affordable to low- and moderate - income
households. The funds could be used for emergency shelters, transitional and
permanent rental housing, and foreclosure mitigation, as well as homeownership
opportunities.
1
Revenues from this fee would be sent on a quarterly basis to the California Department
of Housing and Community Development for deposit in the Housing Opportunity Trust
Fund. Staff recommends Council support this bill to secure new funding sources to
sustain the important work of creating affordable housing opportunities.
Financial Impacts & Budget Actions
There are no financial impacts associated with Council support of this bill.
Prepared by: Barbara Collins, Housing Manager
roved:
Andy Agle, C
Housing and
'►:
Forwarded to Council:
Rod Gould
City Manager