On Tuesday, May 8th, the San Jose City Council took action to support SB 1220, which creates the Housing Opportunity and Market Stabilization (HOMeS) Trust Fund to provide an ongoing, dedicated funding source to address the State's need for affordable housing for its lower- and moderate-income residents.  See the letter from Mayor Reed to the bill's sponsor, Senator Mark DeSaulnier.

SB 1220 would generate an estimated $500 million in funds through a $75 fee on the recordation of real estate documents, with the exception of point of sale transations.  This legislation comes at a particularly critical time for affordable housing, with the elimination of the 20% Low and Moderate Income Housing Fund, the depletion of State bond funds for affordable housing, and continued reductions in federal housing and community development funding.  The new funds would help to ensure that working families have affordable places to live, provide needed jobs for the construction industry, and pump millions of dollars into the State's economy.  Additionally, by funding housing close to jobs and transportation, the State can help achieve its goals for reducing greenhouse gas emissions.

Currently, the bill is working its way through the State Senate and Assembly where it will need a 2/3rds majority vote by June 1, 2012.  If approved, California would join 38 others states that already have housing trust funds with permanent ongoing revenues that have dedicated ongoing revenues generated by document recording fees.