Public officials, like California Assembly member Alberto Torrico, play a significant role in clearing the way for affordable housing development.
With a pervasive budget crisis in the state of California filtering down to the counties and cities, it’s hard to be hopeful about the continued funding of affordable housing projects. Yet state Assembly member Alberto Torrico is very optimistic. In this episode of the “Affordable Housing” podcast, Torrico proposes an alternative method to secure a continuous flow of funding that would involve a flat fee on all real estate transactions in the state. Torrico authored a bill that was signed by Governor Schwarzenegger last year that defers fees for developments where at least 49% of the units are low or very low income housing. Deferring these fees improves the feasibility of affordable housing projects by reducing the amount of money the develop must borrow during construction.