Senate Bill 2 -The Building Homes & Jobs Act was approved by Governor Brown on September 29th, 2017 and will be put into effect starting January 1st, 2018. This bill will affect many documents recorded at local county recorder’s offices. The Building Homes & Jobs Act imposes a fee of $75 dollars for “every real estate instrument, paper, or notice required or permitted by law to be recorded, except those expressly exempted from payment of recording fees, per each single transaction per parcel of real property.” This includes mechanics’ liens and mechanics’ lien releases.
The money generated from the fee will be transferred to The Building Homes and Jobs Trust Fund. The fees possessed from January 1st, 2018 to December 31st, 2018 will be split in two for the local government in California and the Department of Housing and Community. The local government funding will be used to advance the production of multi-income homes, shelters, and the accuracy of real estate evaluations. The Department of Housing and Community will finance programs to assist households retain their homes.
On January 1st, 2019, The Building Homes and Jobs Trust Fund will be split differently. 70% will go to the local government in California and 30% will go to The Department of Housing and Community.
The bill’s objective is to help forge low to moderate income households and decrease the burden of obtaining/keeping a home.
For more information on how this might affect the recording of your mechanics’ lien or mechanics’ lien release, give CNS a call at 800-366-5660.