Fail: 407,375 / 62.86% Yes votes ...... 240,703 / 37.14% No votes

See Also: Index of all Measures

Affordable Housing General Obligation Bonds
City of Los Angeles Proposition H

The Issue

To provide safe, clean affordable housing for the homeless and those in danger of becoming homeless, such as battered women and their children, veterans, seniors and the disabled; assist first time homebuyers; provide low income working families safe and affordable housing; shall the City of Los Angeles issue $1,000,000,000 of bonds, with independent citizen oversight, mandatory annual financial audits, and prosecution for criminal misuse of funds?

The Situation

Affordable housing is scarce in Los Angeles.

More than 88% of City residents cannot afford to buy a median-priced home. Today, a family needs to earn more than $100,000 to buy such a home in the City. People such as teachers, construction workers, and nurses do not earn enough to buy a home in the City.

Rental housing is unaffordable by Federal standards if a family spends more than 30% of its income on rent. Almost half of City renters spend more than 41% of their income on rent.

50,000 homeless people and families live in the City.

The Proposal

The City would issue $1,000,000,000 of bonds to provide about 10,000 new homes and rental units over ten years. These funds would be placed in the Affordable Housing Trust Fund to be used as follows:

• $250,000,000 to help working families buy their first home
• $350,000,000 to build rental housing affordable to low-income working families
• $250,000,000 to build housing for homeless people
• $150,000,000 to be allocated for rental or homeless housing based on future needs.

A citizen’s committee and an administrative oversight committee would monitor how funds are spent and would receive an annual independent audit.

A Yes Vote Means

You want to issue $1,000,000,000 of bonds to build affordable housing.

A No Vote Means

You do not want to issue $1,000,000,000 of bonds to build affordable housing.

The issuance of the bonds will result in average annual debt service payments of approximately $58 million for 30 years. This results in the owner of a home with an assessed value of $500,000 having an average annual tax of $73 for 30 years. The issuance of these bonds will not cause the City’s debt service payments to exceed 15% of General Fund revenues, as established in the City’s Financial Policies. Debt service payments will increase from 5.30% to 9.35% of General Fund revenues in the year in which debt service is the highest for this bond program.

Bond proceeds would be deposited into the City’s Affordable Housing Trust Fund and administered by the Los Angeles Housing Department with oversight from a Citizen Advisory Oversight and Accountability Committee (CAOAC) and an Administrative Oversight Committee (AOC). Bond funds would be used only for the stated purposes, and funding commitments would be approved by the City Council and Mayor.

This measure would require the Housing Department, every two years, to develop a work program, which must be approved by the CAOAC, AOC, City Council and Mayor. The work program shall establish the priorities and guidelines for use of the bond proceeds and will take into account conditions of the housing market and areas of greatest need for affordable housing. The first two-year work program must be approved by June 30, 2007.

Funds will be spent as follows:

A. A minimum of $250 million for affordable rental housing for extremely-low income individuals and households, including the formerly homeless, ranging in income from 0% to 30% of the Area Median Income (AMI);

B. A minimum of $350 million for affordable rental housing for individuals and households, ranging from 30% to 80% of the AMI, with not less than $250 million for affordable rental housing for individuals and households between 30% and 60% of the AMI;

C. $250 million to help individuals and households at or below 150% of the AMI to buy their first homes, with $37.5 million to assist individuals and households at or below 80% of the AMI, if feasible;

D. Remaining funds are to be allocated to Programs A and B above in accordance with the two-year work programs.

Priorities for spending bond funds will include serving those most in need of affordable housing, smart growth and transit-oriented development, leveraging of funds from other, non-City sources, such as the federal and State governments, increasing the overall supply of affordable housing, and stabilization of neighborhoods.

This measure would prohibit the use of bond proceeds for eminent domain over single-family homes or parks. Any criminal misuse of the bond proceeds will be referred to the appropriate authorities for investigation and prosecution to the fullest extent possible under the law. Bond funds will not be used to replace funding currently allocated by the City for affordable housing, so long as these current funds remain available.

This measure will require that a financial audit be conducted each year by an independent auditor, which must be made available to the public. The City Administrative Officer will annually report on the status of the programs, funds collected and expended, and projects approved for funding.

The measure would become effective with a two-thirds vote.

L.A. City Election Division

Homes ForLA Families

MooreIsBetter.com

Los Angeles Council Places $1 Billion Housing Bond on Ballot

(Steve Hymon, L.A. Times, 7/27/06; posted by Knowledgeplex.org)

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The middle class is being forced from Los Angeles. Only 12% of our families can afford to purchase the average priced home. Only 35% of renters can afford the average apartment.

Many low-income families who work full time are forced to live in slums or overcrowded apartments and garages.

Businesses leave the community because there is no affordable housing for their workers.

It is time to do something about the housing crisis.

Proposition H will:

• Expand housing opportunities for thousands of families who are homeless or in danger of becoming homeless;
• Provide low- and moderate-income families with financing assistance to become first-time homeowners; and
• Build secure, decent and affordable rental housing for low income working families, seniors and the disabled.

Business and economic leaders agree that investing in affordable housing is one of the best ways to create new jobs and improve our local economy.

“Secure housing and homeownership strengthens neighborhoods and improves public safety,” Police Chief William Bratton

Proposition H is a good deal for local taxpayers.

Every local $1 will be matched with up to $5 in state, federal and private investment.

Proposition H prohibits the use of funds to destroy parkland or single-family homes.

Proposition H requires tough independent citizens’ oversight with public audits and the law requires criminal penalties for fraud and the misuse of public funds.

That’s why one of the largest bipartisan coalitions of community leaders in Los Angeles history urges you to vote YES on Proposition H.

For more information: http://www.HomesforLAfamilies.org

The bond increases the property taxes of homeowners for 20 years, regardless of their income, making housing less affordable for everyone who has already worked hard to buy a home.

The bond gives millions to the well-off.

Unlike normal housing programs, which help only the poor, Section C of Proposition H makes available millions of taxpayer dollars to upper income people.

Don't be fooled by the bond proponents' talk about the homeless. This bond increases your taxes and constitutes "welfare for the rich."

The bond is unnecessary.

The city is taking in $717 million more this year than last. That money should be used to pay for housing programs for the truly needy -- instead of forcing homeowners to repay a billion-dollar loan, plus another billion in interest.

For more reasons to vote NO on Proposition H visit: http://www.MooreIsBetter.com/VoteNo.htm

JON COUPAL
President, Howard Jarvis Taxpayers Association

RICHARD CLOSE
President, Sherman Oaks Homeowners Association

JOEL FOX
President, Small Business Action Committee

ERNEST DYNDA
President, United Organizations of Taxpayers, Inc.

WALTER MOORE
Real Estate Broker

If Measure H passes, homeowners' tax bills will go up to subsidize those who, in some cases, have not yet arrived in Los Angeles.

Homeowners are already paying higher taxes for four Los Angeles Unified School District bonds, two Los Angeles Community College District bonds, bonds for police facilities and the zoo, several assessments for parks, one of the highest utility user taxes in the state, and a parcel tax that county officials promised would maintain trauma centers. In addition to the local property tax, some homeowners already are already paying an extra $1000 a year, or more, to meet these obligations. And they are about to see a 154% increase in their city trash bills.

As if taxpayers don't have enough to worry about, look at your ballot. Voters are being asked to approve over $41 billion in state bonds, including Proposition 1C, a $2.8 billion state bond for housing - that's right, another housing bond. And there are billions more in potential taxes, including Proposition 88 a new statewide property parcel tax.

The purpose of the Measure H bond is to fund a social welfare program. Homeowners and other property owners should not have their taxes increased for social welfare. If needed, the funds should come from all taxpayers. Programs like this should be paid from state and federal funds and grants, not city money. Local taxes are for police fire, sanitation and other local services, not for subsidized housing for some who may not yet live in Los Angeles.

The city has a budget of $6 billion a year. We are already paying more than enough.

Vote no on Measure H.

JON COUPAL
President, Howard Jarvis Taxpayers Association

RICHARD CLOSE
President, Sherman Oaks Homeowners Association

JOEL FOX
President, Small Business Action Committee

ERNEST DYNDA
President, United Organizations of Taxpayers, Inc.

WALTER MOORE
Real Estate Broker

Proposition H will cost the average homeowner less than $50 a year, only about $4 a month.

Every dollar of local money can be matched with as much as $4 or $5 in state and federal funds to create desperately needed affordable housing. If we do not pass Proposition H, those state and federal dollars will be spent in other communities.

Proposition H will address our city’s terrible homeless crisis and help thousands of families get off the street and into safe housing.

Proposition H will assist low and moderate income first time home buyers and revitalize our neighborhoods.

Proposition H will provide quality affordable rental housing.

And Proposition H contains tough independent audits and full public accountability.

That’s why one of the broadest coalitions in Los Angeles history says vote Yes on Proposition H.

In the first fiscal year after the first series of bonds has been issued, the estimated tax rate will be 0.12% per every $100 of assessed valuation. In the 11th year, the first fiscal year after the issuance of the last series of bonds and the year in which the tax rate will be the highest, the estimated tax rate will be 2.6% per every $100 of assessed valuation. In the 11th year, the year of highest debt service, a home with an assessed value of $500,000 will have a maximum annual tax of $129.

Over the life of the bonds, the average annual tax rate is 1.5% per every $100 of assessed valuation. A home with an assessed value of $500,000 will have an average annual tax of $73 for 30 years.

A. $250,000,000 or more for affordable rental housing for extremely low income individuals and households, including the formerly homeless, ranging from zero income to 30% of Area Median Income (AMI), as established and revised by the U. S. Department of Housing and Urban Development.

B. $350,000,000 or more for affordable rental housing for individuals and households, ranging from 30% of AMI to 80% of AMI, with not less than $250,000,000 for affordable rental housing for individuals and households between 30% of AMI and 60% of AMI, with the remaining $100,000,000 for affordable rental housing for individuals and households between 60% and 80% of AMI.

C. $250,000,000 to help individuals and households at or below 150% of AMI to buy their first homes, of which $37,500,000, if feasible and an efficient use of funds, shall be for individuals and households at or below 80% of AMI.

Funds not committed above shall be allocated to programs A and B in accordance with the Two-Year Work Program policies and guidelines, as recommended by the Citizens Advisory Oversight and Accountability Committee and the Administrative Oversight Committee, subject to approval by the City Council and Mayor. The Two-Year Work Program shall also establish standards as to if and when bond proceeds should be re-allocated among the programs so that recommendations may be made to the City Council and Mayor for approval on re-allocating bond proceeds to programs A and B.

A Two-Year Work Program shall be developed by the Housing Department with recommendations and approval by the Citizens Advisory Oversight and Administrative Committee and the Administrative Oversight Committee, subject to approval by the City Council and Mayor. It shall establish priorities and guidelines for use of the bond proceeds. Priorities shall include, but not be limited to, serving those most in need of affordable housing, smart growth and transit oriented developments, leveraging of funds from non-City sources, increasing the overall supply of affordable housing, and stabilization of neighborhoods. The first Two-Year Work Program shall be approved by June 30, 2007 and be revised every two years.

Additional Provisions:

1. Bond proceeds shall be administered by the Housing Department with oversight from a Citizens Advisory Oversight and Accountability Committee and from an Administrative Oversight Committee, with funding commitments to be approved by the City Council and Mayor.

2. The Citizens Advisory Oversight and Accountability Committee shall be comprised of three members appointed by the Mayor and four members appointed by the President of the City Council.

3. The Administrative Oversight Committee shall be comprised of a member of the Mayor’s Office, the Chief Legislative Analyst, and the City Administrative Officer.

4. A financial audit shall be conducted each year by an independent auditor and be made available to the public. The City Administrative Officer shall annually report on the status of the programs, funds collected and expended and projects approved for funding.

5. Bond proceeds shall not be used for purposes of eminent domain over single-family homes or parkland.

6. Bond proceeds shall not be used to supplant funding for affordable housing from existing sources currently allocated by the City, including but not limited to the Community Development Block Grant program, the Home Investment Partnership Program (HOME) subject to the continued availability of these funds.

7. Any criminal misuse of the bond proceeds shall be referred to the appropriate authorities for investigation and prosecution to the fullest extent possible under the law.