Sacramento – This morning, the Assembly Judiciary Committee passed AB 1139 with unanimous bi-partisan support by a vote of 11-0. The bill would require that when a property has a Private Transfer Fee (PTF) attached to it, the consumer would be notified regarding potential financing limitations.
“AB 1139 will better inform and protect consumers” said Assemblymember Eloise Gómez Reyes. “Potential first time homeowners deserve to have full disclosure regarding any factors that may impact the financing of their property.”
PTF’s have been typically used to fund things from environmental mitigation and affordable housing, but also providing a deferred profit for developers or property owners by simply imposing this fee. A 2012 Federal Housing Finance Agency ruling required that any PTF associated with the home would have to provide “a direct benefit” to the property to be eligible to obtain a Fannie Mae or Freddie Mac backed mortgage.
AB 1139 will be heard next and voted upon on the Assembly floor. For more information on the bill, click here.
Assemblymember Eloise Gómez Reyes represents Assembly District 47 which includes the cities of Fontana, Rialto, Colton, Grand Terrace, San Bernardino and the unincorporated areas of Muscoy and Bloomington.
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Contact: Galen Dobbins, (916) 319-2047, galen.dobbins@asm.ca.gov