California moved a step closer to having a permanent funding source for affordable housing Wednesday.

The state Senate passed the California Homes and Jobs Act (SB 391) 27-12.

The bill seeks to create an ongoing source of funds for affordable housing by setting a $75 recording fee on real estate-related documents, excluding all home and commercial property sales.

The bill would generate an estimated $500 million in state investment and leverage $2.78 billion in federal and local funding and bank loans. It would help create 10,000 affordable homes each year.

The money would help make up a large gap left by the elimination of the state’s 400 local redevelopment agencies (RDAs). The demise of the RDAs, a move to balance the state budget deficit, wiped out California’s largest single source of funding for affordable homes. The agencies used to generate about $1 billion per year for affordable housing.

“We cannot turn our back on the millions of Californians who lack the stability of a home. The Homes and Jobs Act will help strengthen both our economy and our communities today, and for many years to come,” said Sen. Mark DeSaulnier, the bill’s author. “This bill will get California building affordable homes again, creating 29,000 thousand jobs annually in the construction industry. Putting homes within reach of all Californians will help both business and our working families. We cannot expect business to succeed if there are not homes within reach of California’s workforce.”