Local employer affordable housing fees: Affordable Housing Assistance Fund.
Impact
The bill addresses a critical statewide concern by emphasizing affordable housing in a region where the median home price significantly exceeds the national average. By mandating fees based on employment size, the bill encourages larger employers to contribute to local housing programs, thus potentially alleviating some of the financial pressures of housing costs for low and moderate-income families. This legislative item aims to ensure that all cities, including charter cities, can apply these provisions uniformly, advancing consistent local efforts to tackle homelessness and housing affordability across the state.
Summary
Assembly Bill 2843, introduced by Assembly Member Chu, introduces the concept of a Local Employer Affordable Housing Fee that local entities such as cities and counties must collect from applicants for local business licenses. The amount of the fee is determined by the number of employees a business has, establishing a tiered payment structure. This funding mechanism is designed to bolster local initiatives aiming to solve California's significant housing crisis. The funds collected will be deposited into an 'Affordable Housing Assistance Fund,' which has designated uses, including first-time homebuyer programs, rental assistance, and resources for individuals experiencing homelessness.
Contention
Notably, the bill has raised some contention, primarily around the implications of increased costs being passed on to local businesses, particularly those with a larger employee base. While proponents argue that the intent is supportive and vital for community enhancement, opponents may contend that added fees could deter business growth or lead to higher costs for consumers. Furthermore, since the implementation of local programs involves additional oversight and resources, questions remain about the sufficiency of state reimbursement for any mandated costs associated with this new regulation.