Most Californians can’t afford their rent.
The state’s affordability crisis has worsened since the recession, as soaring home prices and rents outpace job and income growth. Meanwhile, government funds to combat the problem have evaporated.
Local redevelopment agencies once generated roughly $1 billion annually for below-market housing across California, but the roughly 400 agencies closed in 2012 to ease a state budget crisis. In addition, almost $5 billion from state below-market housing bonds, approved by voters last decade, is nearly gone.
A state bill seeks to replace some of those funds and create more than 10,000 low- and moderate-income homes annually through a $75 fee for recording real estate documents. But the proposal has drawn criticism from some in the real estate industry who say it unfairly saddles homeowners and businesses with added costs.