Affordable housing shortage being addressed in California

California lawmakers and officials are attempting to improve the availability of affordable housing in some areas, leading to new legislation.

Limited government funding and the slow recovery of the housing market are considered to be among the causes for the problem, Multi-Housing News reports. To solve it, lawmakers have put forward the Housing Opportunity and Market Stabilization Act, along with other bills.

This particular law would assess a document recording fee on real estate transactions, meant to raise funds to create construction jobs and support affordable housing. Specifically, officials would use the funds to assist residents with fixed incomes and limited budgets who need help developing, acquiring, rehabilitating or preserving affordable homes.

This may impact the state’s property management companies and owners in a variety of ways, such as supporting ownership over rentals, depending on the final form of the bill should it pass. Industry stakeholders in the state are reportedly watching the bill’s progress.

California’s low vacancy rates may cause difficulty for some prospective tenants, according to the news source. The state is experiencing a lack of properly zoned parcels that impedes development of new multifamily housing, which may increase interest in single-family home rentals.