SB 2 (Atkins). Building Homes and Jobs Act.

document-recording

Would impose a fee of $75 to be paid at the time of recording of every real estate document, including association governing documents, and collection documents. Would increase the cost to a delinquent homeowner attempting to resolve the debt to the association.

Current Status: Pending

FindHOALaw Quick Summary:

Under existing law, there are programs providing assistance for emergency housing, multifamily housing, home ownership for very low and low-income households, and down payment assistance for first-time buyers. SB 2 (Atkins) would add Government Code § 27388.1 enacting the “Building Homes and Jobs Act.” The bill would make legislative findings and declarations relating to the need for establishing permanent, ongoing sources of funding dedicated to affordable housing development.

The bill would impose a fee of $75 to be paid at the time of the recording of every real estate instrument, paper, or notice required or permitted by law to be recorded. This would include, but is not limited to, the following: deed, grant deed, trustee’s deed, request for notice of default, abstract of judgment, notice of default, assessment lien, release of lien, easement, notice of trustee sale, notice of completion, mechanic’s lien, maps, and CC&Rs. The fee shall be reduced, so that the fee, together with any charges or recording fees, shall not exceed a per parcel maximum charge of $225. Increasing the fees on recording documents that are generated in connection with an assessment delinquency (i.e., an assessment lien) will result in increased costs for the delinquent homeowner, as those fees would be incorporated into the delinquent homeowner’s debt pursuant to Civil Code Section 5650. (See “Collection Fees & Costs.”)

The bill would require that revenues from this fee, after deduction of any actual and necessary administrative costs incurred by the county recorder, be sent quarterly to the Controller for deposit in the Building Homes and Jobs Fund. The bill would provide that moneys in the fund may be expended for supporting affordable housing, home ownership opportunities, and other housing-related programs, as specified.  This bill would declare that it is to take effect immediately as an urgency statute.

**UPDATE: On March 21, 2017, the proposed text of SB 2 was amended to change the department where revenues shall be sent from the “Department of Housing and Community Development” to the “Controller” for deposit in the Building Homes and Jobs Fund:

(b) The county recorder shall remit quarterly, on or before the last day of the month next succeeding each calendar quarterly period, the fees, after deduction of any actual and necessary administrative costs incurred by the county recorder in carrying out this section, shall be remitted quarterly, on or before the last day of the month next succeeding each calendar quarterly period, to the Department of Housing and Community Development to the Controller for deposit in the Building Homes and Jobs Trust Fund established by Section 50470 of the Health and Safety Code, to be expended for the purposes set forth in that section. In addition, the county shall pay to the Department of Housing and Community Development Controller interest, at the legal rate, on any funds not paid to the Controller before the last day of the month next succeeding each quarterly period.
(c) If the Department of Housing and Community Development determines that any moneys derived from fees collected are being allocated by the state for a purpose not authorized by Section 50470 of the Health and Safety Code, the county recorder shall, upon notice of the determination, immediately cease collection of the fees, and shall resume collection of those fees only upon notice that the moneys derived from the fees collected are being allocated by the state only for a purpose authorized by Section 50470 of the Health and Safety Code.

To read the current text of SB 2, click here to the view the bill’s page on the California Legislature’s website. FindHOALaw will continue to track SB 2 as it progresses through the Legislature. 

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View more info on SB 2
from the California Legislature's website