The People’s Republic of Berkeley California is preparing a to level a tax on “affordable housing.” I am not making this up.
The Berkeley Town Council is now considering leveling a one-time $10,000 fee (plus a $450 annual fee per unit) on apartment buildings offering below market rate (a.k.a., affordable housing to lower and middle income families) housing options. The fees would be paid by the landlord who would, of course, then turn around and raise rates on the “affordable housing.”
As reported by Curbed.com, these new fees would go toward paying for additional government resources to oversee, among other things, how much property managers charge their tenants. So, landlords will either have to eat the costs of the new five-figure fee or risk getting in trouble with the Berkeley Town Council for raising rents to cover the new government fee.