Seeking to stem the rise of homelessness in the nation’s second largest city, the Los Angeles City Council voted Wednesday for a plan to add a property tax bond measure to the November ballot that’s expected to raise about $1.2 billion to build housing.
The City Council voted 14-0 to put the bond measure to voters. Councilman Mitch Englander was absent from Wednesday’s vote.
The measure, which needs to pass by a 2/3 threshold in November, comes as city officials grapple with a 5 percent increase in homelessness in Los Angeles compared to last year and a noticeable spike in encampments across the city.
If approved by voters, the measure would allow for a new property tax on both residential and commercial properties. A $1 million home would be taxed about $40 to $80 a year with the new fee, according to city analysts.
Property owners could pass on the tax to their commercial or residential tenants. However, owners would not be able to charge the tax to renters covered under the city’s rent stabilization ordinance, said Larry Gross, executive director of the Coalition for Economic Survival, a tenant advocacy group.
The City Council is also considering a parcel tax to raise money for homelessness as an alternative and will take up consideration of that item on Friday.
If voters approve the bond measure, the city will use the money to build at least 10,000 units of affordable housing throughout Los Angeles, officials said.
The county is also considering revenue streams for the homeless, including a possible ballot measure. However, a proposal for a county-wide “millionaires’ tax” stalled because Gov. Jerry Brown hasn’t shown support for the plan, city officials said Wednesday.
“We preferred a regional approach,” Councilman Marqueece Harris-Dawson told reporters. “We thought the best way to do this was through the county of Los Angeles.”
Faced with only local fundraising options, the new property tax “is the best way that’s available,” he added.