Senate Bill 670 (Correa), “Private Transfer Tax Prohibition” was defeated by the California Senate Transportation and Housing Committee.  The legislation would have protected consumers by placing responsible restrictions on private transfer taxes levied by developers and limiting the proceeds to environmental and affordable housing efforts related to the new development on which the private transfer taxes are imposed.

Currently, there are no restrictions on where or how proceeds from private transfer taxes can be spent; no accountability or oversight of the recipients of the private transfer tax funds; no limits on how long a private transfer tax may be imposed; no limits on the amount of private transfer taxes that can be imposed on home buyers; and no clear mechanism for disclosing the existence of a private transfer tax obligation to home buyers. This was defeated in the California Senate Transportation and Housing Committee.

H.R. 1852, a bill passed by the House Financial Services Committee to reform the FHA mortgage insurance program.  The bill increases the FHA loan limits nationwide, eliminates the 3% downpayment requirement for first time homebuyers, streamlines FHA purchases of condominiums, allows FHA to risk-based price loans, eliminates the cap on the number of reverse mortgages FHA can insure, and increases the loan limits for multifamily properties in high cost areas.  The bill also includes a provision that would take excess revenues created by these changes and puts them into housing counseling, technology improvements for FHA, and an affordable housing fund.  The bill is expected on the House Floor in early June.

The industrial real estate market got off to a slow start according to a report by Colliers International.  Occupied space increased by just 27.3 million square feet, compared with 36.9 million square feet in the fourth quarter of 2006.  Fewer buildings were completed during the quarter than were expected, keeping the rise in vacancies to just four basis points.  Thirteen percent of markets are forecasting demand to drop further in the current quarter.

Nine out of 10 Americans say affordable housing is a top priority, and a majority believes U.S. housing policy fails to address this issue, according to a survey commissioned by a coalition of public, private, and nonprofit advocacy groups including the NATIONAL ASSOCIATION OF REALTORS®. 

This report was released in conjunction with the kickoff of Housing America 2007, a national affordable housing campaign; the survey also brings attention to the housing dilemmas facing a growing number of Americans.  According to the coalition, on any given night, 754,000 persons are homeless, and minimum wage earners are unable to afford a one-bedroom home anywhere in the country.

Americans also want the government to more actively address affordability, according to the survey.  Nearly seven in 10 said they would be more likely to vote for a candidate who articulated a detailed plan to provide affordable housing and 75 percent say a candidate’s ideas on how to provide more affordable housing will be an important factor in deciding who they will vote for in the 2008 presidential race.

Wednesday, June 6^th, REALTORS® from across California will gather in Sacramento for the CALIFORNIA ASSOCIATION OF REALTORS® 37^th annual Legislative Day.