Press Release
From: Valley VOTE
Valley
Voters Organized Toward Empowerment
14622 Ventura Blvd. #424, Sherman Oaks, CA. 91403
Contact: Joe Vitti
Email: javittisr@cs.com [818] 366 1668
Valley
VOTE Press Release
Date:
10/30/06
The Valley VOTE Board of Directors has voted overwhelming to recommend a NO vote on Measure H.
After significantly helping to create a shortage of affordable housing, elected officials, nonprofit housing providers, and contractors are promoting Measure H to cover their prior actions. While a booming population certainly impacts demand and prices, antibusiness rental housing policies have been a major cause of the shortage. According to Vic Viereck, Valley VOTE's Chief Financial Officer "Anti-investment local, state, and federal housing policies are a main cause of the Los Angeles shortage of affordable housing. Measure H would force taxpayers to pay for such failed policies while eroding the city's tax base."
If Measure H passes, the owners of all real estate in Los Angeles would have to pay a yearly average additional $14.66 per $100,000 of assessed valuation. In the 11th year (according to the Voter Information Pamphlet), the tax per $100,000 of assessed valuation would grow to $25.80 ($129.00 for a $500,000 assessed value).
That means all citizens would not only pay additional property tax on their homes, but every product and service they pay for in Los Angeles would include a price increase to cover the increased property tax. This will negatively impact the buying power of the lowest income earners in the city that are intended to be helped by this plan. In addition, many tax producing properties would be replaced with buildings that would be exempt, or substantially exempt from property taxes, eroding the city's property tax base making it more difficult to provide needed city services.
Just as the Los Angeles Business License Tax makes locating in Los Angeles more expensive, the debt service tax to pay the Billion Dollar Bond would have the same effect. It would make it more difficult to attract employers to the City of Los Angeles.
Due to the way in which tenants would be selected for the new “affordable” units, many taxpayers would in effect be subsidizing more affluent people. Section C of the bond earmarks $250 million for people who make up to 150% of the Area Median Income (AMI) as determined by the U. S. Department of Housing and Urban Development. According to that provision, a family of four, earning up to $103,950 would qualify for a subsidized unit.
Owners of rent controlled apartments would have to absorb the tax increase without being allowed to pass it through to the tenant. This further discourages business investment in Los Angeles, and prevents employment for rehabilitation of older apartments.
(Valley VOTE members were pleased to hear from Wendy Greuel at our last monthly meeting that the city is reviewing the present Rent Stabilization Ordinance,)
As with the case with Measure R, the Los Angeles City Council did not provide early notification, as required by the City Charter, to the Neighborhood Councils that Measure H was being planned for the November Ballot. The City Charter Section 907 states that decisions by the City Council shall include "notice to neighborhood councils as soon as practical, and a reasonable opportunity to provide input before decisions are made"
However, Measure H backers did find time to ask Focus Groups in the West Valley for their views but not the Neighborhood Councils, Chambers of Commerce, Homeowner Associations and many other interested organizations in the Valley.
Valley VOTE Mission Statement
Valley VOTE, a diverse coalition of San Fernando Valley residents, business people, educators, community activists, and organizations, is committed to exploring and implementing programs that empower the people of the San Fernando Valley and the City of Los Angeles, including opportunities to improve local governance, education and public participation on policy matters.
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