SB 1462 (Glazer)

Supporting HWG Member: California YIMBY

Condominiums have historically provided more affordable starter-homes for first-time homebuyers, but some aspects of state law make it difficult to finance condo projects, discouraging their construction. 

Historically, condominiums have provided affordable starter-homes for first-time homeowners. Condos are on average 2.7 times less expensive than a typical single-family home.

However, current state law increases the risk and costs to building new condominium projects, discouraging their construction and making higher-cost luxury and rental projects much more attractive for developers.

SB 1462 will reduce financing costs and risks for new condominium projects by allowing developers to use deposits made by buyers during the pre-sale process to cover construction costs. The bill also requires that the California Department of Real Estate oversee projects that make use of this provision, and that the developer is financially insured so that deposits are fully repaid in the event the project is not completed.

Read more and find the template support letter here.

Reach out to Emily Jones, Campaign Manager at California YIMBY, with questions or to support.