L.A. Council OKs Homeless-Funding $1.2 Billion Bond Measure For November Election

LOS ANGELES -- The Los Angeles City Council voted today to place a bond measure on the November ballot aimed at raising money to address the city's homelessness problem, but postponed consideration of a related parcel tax measure until Friday.

The council agreed to ask voters to authorize $1.2 billion in bonds to be issued over 10 years, but is also considering an alternative parcel tax measure that could raise $90 million per year until 2027 for homeless housing and services.

The council has yet to decide which revenue-raising strategy to advance and is being asked to place both the bond and tax measures on the ballot, at least for now. The council would have until Aug. 12 to withdraw one of the measures.

At least two City Council members -- Jose Huizar and Marqueece Harris- Dawson -- are pushing for the bond proposal, with both pointing to recent polling indicating the public would be more receptive to it over a parcel tax measure.

Harris-Dawson, who chairs the Homelessness and Poverty Committee, said the goal is to help get 10,000 units built to house the homeless. The revenue from the bond measure would be used to spur such housing projects, with the city acting as partner and the purchaser of the property where the housing is to be built.

"The council has decided to put before the voters an opportunity to make an investment in dealing with the homelessness crisis that we see in our city,'' Harris-Dawson said. "Every indication that we have is that people are eager for a solution and are willing to pay for it.''

Harris-Dawson said the hope was to have a regional funding approach, but the governor has "turned his back'' on the county's proposal to tax high-income earners.

Huizar, who also sits on the homelessness committee, said in a statement that the vote to put the bond measure on the ballot was a ``huge leap forward in addressing homelessness.''

Mayor Eric Garcetti said he is leaning toward supporting the bond,rather than the parcel tax measure. He cited polling numbers and the amount of revenue that would be brought in to explain his preference. Garcetti said he feels voters will have a self-interest in approving the measure this fall.

"I have seen seven polls in a row where people say homelessness is their number one concern, where people are going to say yes, I'd rather dig in my pockets and prevent it because it's going to save me more in the long run,'' Garcetti said.

The parcel tax would be calculated based on the square footage of improvements, while the bond measure would be paid back through taxes based on a property's assessed value.

City officials estimate that under a $1.2 billion bond measure, property owners would generally need to pay an additional $4.50 to $17.50 per year for every $100,000 of assessed value, with the payments lasting for as many as 28 years.

If approved, the proposed bond amount would be the largest voters have ever authorized the city to issue. The biggest bond amount approved thus far was $600 million to pay for citywide security improvements. Voters have also approved city bond measures to build public facilities for the library, police and fire departments, animal shelters and the zoo, and to make seismic upgrades.

City leaders last year vowed to tackle homelessness and to put about $100 million toward the effort. They estimate it will cost about $1.85 billion over a decade to adequately house and provide services to homeless individuals and families in Los Angeles. A recent count put the city's transient population at about 27,000.

While city leaders point to polling, the president of an apartment owners group said members will likely be against the measures.

"We're taxed to death already,'' said Dan Faller, president of the Los Angeles-based Apartment Owners Association of California. "The city of LosAngeles already puts a cap on our income with our rent control, harass us with property inspections, and now they want to put more tax on us.''

He added that "apartment buildings have a lot more square footage than single-family houses, so they're asking us to carry a lot more of the load.''

Faller said the council members should focus on what they are personally doing to help the homeless, rather than forcing property owners to put up the money.

"If they have this feeling for the homeless, let me see their tax returns and how much each of them who are going to vote for me and my members to pay more money -- how much do they contribute now to the homeless and people who are not fed?'' Faller said. "They're professionals -- they talked people into voting for them, they are going to talk people into voting for this,'' he said.

"But apartment owners are not going to be voting for it.''

Faller said his group will likely look to the Howard Jarvis Taxpayers Association to fight the proposed measures.

Councilman Mike Bonin said this week -- prior to a preliminary vote on the bond measure -- that there is a "hunger for solutions" to end homelessness, and the city should "strike now, while that window of public support is open."

He said the city is moving forward despite a countywide proposal to put a "millionaires" tax on the ballot that would have high-income earners helping to pay for homeless housing and services. That proposal is stalled because Gov. Jerry Brown is "stubbornly not allowing the county to pursue" the measure, Bonin said.

Council President Herb Wesson also pointed to the need for the city to move forward, despite the county proposal.

"We all agree the best approach should be a regional approach, but it does not look like that regional approach is going to occur," he said.

City Administrative Officer Miguel Santana said that with the bond measure, the individual bonds would only be issued when "projects surface."

"We're trying to avoid a situation where we're borrowing more than what we need," he said.

The money from either the parcel tax or the bond measure would be spent on housing for people who are homeless or in danger of being pushed onto the streets. The funds would also be earmarked for facilities that provide mental health services, drug and alcohol treatment and other assistance.

City leaders are hoping to submit the proposed measure or measures by July 1 so that they can be placed on the November ballot.

Also for upcoming elections:

• Marijuana Initiative Qualifies for November Ballot
• He's In! Green Dot School Founder Steve Barr To Run For L.A. Mayor In 2017

Previous coverage: Homeless-Funding Bond Measure May Be Headed To November Ballot

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