The California State Senate on Thursday approved a new fee on real estate transactions that lawmakers said could generate as much as $300 million in funding to build more affordable housing statewide.

The bill passed 27-12 and now heads to the state Assembly. As it is written now, it would impose a $75 fee on real estate transaction related documents like deeds a notices, with a $225 cap. It would not apply to commercial or residential transactions but would be required for other real estate deals such as mortgages or refinancing.

Lawmakers said the new could generate as much as $300 million in funding to build more…

"When you use this money to build more housing, you generate more income more tax, more jobs and it helps spur the economy," Sen. Toni Atkins (D- San Diego), who penned the bill, told the Associated Press."This will make a difference for middle income families."

Democrats have championed the bill, which they say will help the estimated 1.5 million California families that are shut out of an affordable housing market. But Republicans have pushed back against it, saying it would disproportionately affect young families and businesses.

"I want to solve that problem, but I can't do it on the backs of the emerging people who have worked hard, trying to get their first house or move their family into a home that would accommodate their growing family," Sen. Joel Anderson (R-Alpine), told the AP.

Separately, the Senate also passed a controversial bill by Marc Levine (D-Marin County) which would exempt the Bay Area county from housing density laws until 2028.