California residents have been hearing about the “package” of housing bills pending in the state legislature. The flurry of plans to finance and build “affordable” and “worker” housing comes with a significant price tag – there is no such thing as a free lunch, remember?
We have already seen the passage of Senate Bill 1, the infamous “gas tax,” supposedly enacted to provide funds for roads, and supposedly crucial now that so much housing is being built. The price tag for SB 1 is an annual $5 billion, to be paid by tax and fee payers. California residents will also pay increased prices for goods and services, as businesses will pass their increased costs to consumers.
As brazen as SB 1, is Senate Bill 2, in floor process as of September 14. SB 2 is yet another housing bill,
The bill would impose a fee, except as provided, 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, per each single transaction per single parcel of real property, not to exceed $225. By imposing new duties on counties with respect to the imposition of the recording fee, the bill would create a state-mandated local program.
SB 2 will add to housing costs incurred by developers, homebuyers, and renters – a strange way to help people obtain housing.
Another example of bills in the “package” is Senate Bill 3. SB 3 intends to funnel money into housing by the issuance of bonds, further increasing California’s state debt.
This bill would enact the Veterans and Affordable Housing Bond Act of 2018, which, if adopted, would authorize the issuance of bonds in the amount of $4,000,000,000 pursuant to the State General Obligation Bond Law. Of the proceeds from the sale of these bonds, $3,000,000,000 would be used to finance various existing housing programs, as well as infill infrastructure financing and affordable housing matching grant programs, as provided, and $1,000,000,000 would be used to provide additional funding for the above-described program for farm, home, and mobilehome purchase assistance for veterans, as provided.
We note that bonds under SB 3 have to be approved by voters, giving voters a choice whether they wish to continue losing control of planning of their cities and counties; and whether they want to further mortgage the future of their children and grandchildren.
There must be realization that California is stuck in an infinite programming loop – stack overflow, eventual crash! Stacking people in limited land is bound to raise housing prices. Those who cannot afford to own or rent expensive housing, live on the streets. Planners’ solution is to produce subsidized housing in packed spaces. The subsidies attract more residents, many of them homeless. And the cycle re-starts.