California enacts new real estate fees. Can Denver be far behind?

by | Nov 20, 2017 | Blog

In light of Denver’s rise in home prices in recent years, some look to California—where prices have been outsized for decades now—to see what might be in store for the metro area. No surprise, California has been grappling with the lack of availability of low-income housing, as has Denver.

Recently, California Governor Jerry Brown signed a bill that would enact fees on real estate deals to provide a permanent source of funding to pay for affordable, low-income housing.

Citizens will now pay $75 for needed documents, such as deeds and notices. The fees are capped at $225 per real estate transaction.

Will a similar bill be introduced here?

It’s anyone’s guess—although even in California, it wasn’t smooth sailing getting the bill passed. Groups such as the National Federation of Independent Business, the California Mortgage Association and the Howard Jarvis Taxpayers Association were in opposition.

Lawmakers estimate they need to build 1.8 million new units of housing to meet population projections and household growth over the next decade, according to the Wall Street Journal.

Photo Copyright: marigranula / 123RF Stock Photo

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