For those in the real estate industry in California, Nick Vertucci is a household name. After attending a seminar on real estate with a friend in the early 2000s, my dedication to real estate has never been waived. For more than ten years, I have garnered experience and knowledge in real estate developing and flipping. It takes strategy to succeed in the competitive real estate market. One of the main hurdles in this business is the law. Without understanding the laws behind any business, it is difficult to succeed. Well, talking of legislation, there are new laws affecting the real estate industry in California. Here are the new legislation and their impact to stakeholders in the industry.
Senate Bill 2
Proposed as part of the package by Sen. Atkins (San Diego), the bill will introduce a documentation fee ranging from $75 to $225 depending on the establishment. Projections show that the bill will generate more than $200 million annually. 70% of the amount will be remitted to cities and counties while a goodly portion of the balance left to the state will be used to provide low-income housing. The California Escrow Association and California Mortgage Associated opposed the bill saying it will negatively affect record keeping. They continued to say that poor record keeping will impose on financially burdened homeowners seeking to refinance.
Senate Bill 3
Proposed by San Jose’s senator Beall Jim, the bill will be put on the ballot for voter approval in November 2018. The bill seeks to set up a four-billion-dollar housing bond. The bill will come as good news to veterans because a third of the money will be used to subsidize the amount they pay for a house. The rest of the money will be used to finance affordable housing in the state. The senator also added that the funds would do more for the city cleanup and park programs.
Senate Bill 1505
Strongly criticized by members of the real estate society, the bill will require that developers set aside some portion of their Multi-family housing projects of low-income units. This is an outright no for developers who seek to attract a certain type of clientele. For developers, this means that the cost for development will go up in the process of incorporating these units. No developer will want to invest in a project that will not break even.
Senate Bill 35
Good news for those prospecting to get into the real estate business. This bill by Senator Scott will help developers in dealing with the legislative hustle that comes with building property in the state. The approval process needed by developers to build multi-housing units in certain zones as well as the agreement of paying the prevailing wage for construction workers. For cities that cannot provide enough housing, the bill will give developers the leeway of bypassing local government review without reproach. This is certainly good news for developers who must wait long periods for approval and have to go through a number of reviews before being allowed to break ground.
In as much as the senate believes that the funding bills will go a long way in dealing with the housing problem, there is still too much to be done. California has more than 1.5 Million people unable to afford housing because of their low income. Some of the funding bills have set some strict regulation on developers such as setting aside a portion of their multi-housing units for low-income housing. This is a move by the government to deal with the issue housing. If the bill is approved, it is estimated to have the potential to produce more than 70,000 housing units.
Looking at the legislative package as a whole, it is safe to say that the interests of all stakeholders involved have been taken care of. With the leeway given to developers, we will have a better time at starting new projects that were earlier restricted by long and tedious government reviews. Homeowners will no longer face housing problems if the funding bills are assented to. Proper documentation in as much as is expensive will improve transparency in the business and weed out the corrupt. The local government will in the process be able to provide housing and reduce the housing menace. Find Nick’s company on Facebook, and other social media like Twitter.