Councilman Richardson, Joined By Councilmembers Zendejas & Andrews, Seek Property Tax Increase Ballot Measure For "Affordable Housing" And Homeless Facilities; Would Cost Homeowners $100 Annually Per $400k Of Assessor-Assessed Property Valuation; Only Two Other Councilmembers Needed To Advance Jan. 7 Agenda Item Toward Nov. 2020 Ballot When It Would Need 2/3 LB Voter Approval;
Follow the Money: See Who Contributed Over $200k Earlier This Year To Support Richardson's Effort
If LBREPORT.com didn't tell you, who would?
No one in LBREPORT.com's ownership, reporting or editorial decision-making has ties to development interests, advocacy groups or other special interests; or is seeking or receiving benefits of City development-related decisions; or holds a City Hall appointive position; or has contributed sums to political campaigns for Long Beach incumbents or challengers. LBREPORT.com isn't part of an out of town corporate cluster and no one its ownership, editorial or publishing decisionmaking has been part of the governing board of any City government body or other entity on whose policies we report.
LBREPORT.com is reader and advertiser supported. Support independent news in LB similar to the way people support NPR and PBS stations. We're not non-profit so it's not tax deductible but $49.95 (less than an annual dollar a week) helps keep us online.
(December 30, 2019) -- Councilman Rex Richardson, joined by Councilmembers Mary Zendejas and Vice Mayor Dee Andrews, will ask a City Council majority on Jan. 7 -- and they only need two other Council supportive votes -- to prepare a Resolution and related documents (for a subsequent Council vote) for a November 3, 2020 property tax increase ballot measure that would cost LB homeowners $25 per $100,000 of their property's assessor-assessed valuation [meaning $100 per year for a property assessed at $400,000] for "creation of affordable housing in Long Beach, with funds available for extremely low, very low, low, moderate, and workforce housing, crisis shelters and homeless services facilities, motel conversion programs, and other solutions to address the housing and homelessness crisis in Long Beach."
The Councilmembers' agendizing memo says funds would be "dedicated and restricted to affordable housing" and the ballot measure would require approval by 67% percent of LB voters to pass. The ballot measure would let the City Council determine "individual projects and funding formulas" through City Hall's "annual budget and appropriation process and City Council action."
Although the funds couldn't be used for "services," the City Council could spend them for items including:
Construction loans for affordable ownership housing developments
Construction loans for affordable rental and supportive housing developments
Rental acquisition and rehabilitation loans
Preservation of affordable housing with expiring affordability covenants
Acquisition of motel and other sites for housing purposes
Land purchase loans
Adaptive reuse for affordable housing purposes
Homeless projects (must be used for property, not services)
Housing or facilities for mental health programs, substance abuse programs etc.
Homebuyer down payment and second mortgage assistance programs
In their agendizing memo -- visible in full here -- the three co-agendizers also ask the City Manager "to prepare a report on affordable housing needs in Long Beach, strategies to address housing affordability and homelessness, potential types of projects that could be funded with a housing bond, estimates on the number of units that could be constructed with a revenue source dedicated to affordable housing, and report back to the City Council within 90 days."
[Scroll down for further.]
In "Follow the Money" coverage below, LBREPORT.com identifies the individuals and entities who as of June 30, 2019 contributed over $200,000 to the "Lift Up Long Beach" political committee run by CouncilmanRichardson for a ballot measure whose details he didn't publicly disclose at that time [but have become visible now.] Among the larger contributors:was John Molina ($25,000), a founding partner in Pacific 6, the corporate entity that through a subsidiary owns "LBPost.com."
In July 2018, Councilman Richardson and a number of Councilmembers signaled their support -- just not immediately -- for a LB tax increase ballot measure (details not discussed) to provide more "affordable" (low income/subsidized) housing and/or homeless related programs. (LBREPORT.com coverage here.) As LBREPORT.com reported at the time:
[July 26, 2018 LBREPORT.com text] Mayor Robert Garcia, Councilman Rex Richardson and a number of Councilmembers have effectively signaled their support for a Long Beach tax increase of some currently unspecified type on some currently unspecified group of taxpayers to provide what they called a "dedicated local revenue source" -- not for the November 2018 LB ballot [when Garcia seeks voter approval for Charter Amendments] but at some at some future point [after Mayor Garcia says tax increase is supported by sufficient constituencies to mount a successful campaign.] The publicly stated purpose for the "dedicated local revenue source"/tax increase will be to enable more "affordable" (low income/subsidized) housing and provide more homeless-related services.
That was the outcome of two and a half hour Council discussion (including public testimony) on a July 24 item agendized by Councilmembers Richardson, Gonzalez, Austin and Andrews who sought management options -- initially for consideration at the next available Council meeting -- of an unspecified "dedicated local revenue source."
Not one Councilmember supportive of a "dedicated local funding source" publicly uttered the word "tax." (Lead-agendizer Richardson only acknowledged in a single reference that his proposal involved what he called the "t" word.)
Mayor Garcia went so far as to defensively claim that he and the Council aren't responsible for increasing LB taxes.
Mayor Garcia stated: "As a reminder, the City doesn't, we don't tax anybody. The taxes that pass the City are voted on by the voters, and so this Council doesn't go and increase someone's tax or do a parcel tax. That is only decided by voters in the city..." [Editor note: Garcia headed the political committee carrying his name that ran a roughly $600,000 campaign for the June 2016 Measure "blank check" sales tax increase, put on the ballot without dissent by the Council, that brought LB the highest sales tax rate in CA, tied with only a few other cities.]
At the same time as he absolved himself and the Council of responsibility for LB tax increases, Mayor Garcia stated: "Should this City look and work with the community a local source of to fund more affordable housing? The answer in my opinion is absolutely "yes."...[W]hen you put measures like this in front of a community, you have to bring everybody to the table. You don't pass things without some kind of community conversation that involves all the affected people that are going to be part of this type of campaign that would need to take place."
Garcia argued that some type of "dedicated local revenue source" is needed for affordable housing after Sacramento dissolved local Redevelopment Agencies statewide [that had allowed LB City Hall to divert property tax revenue to float debt that enabled City Hall-favored developers to buy "blighted" properties for projects in locations and types approved by City Hall.]
3rd dist. Councilwoman Suzie Price was the only Councilmember to speak the word "tax"...in citing reasons on the merits why she didn't support Richardson's proposal as agendized. Councilwoman Price said the item combined two complex, important but separate issues -- "affordable housing" and "homelessness" that deserved thoughtful but separate discussion. She added that in her view, the agenda item attached "homelessness" to make it sound more attractive politically...and said she couldn't imagine supporting, or her constituents supporting, a tax increase, as proposed in such preliminary form as was agendized.
Councilman Richardson defended his proposal, arguing it reflected previous Council discussions, including a 2017 Council meeting at which a city staff memo listed the option of a "bond" (debt bond) among measures to fund affordable housing. Richardson also insisted that "affordable housing" and "homelessness" are linked.
However, Richardson ultimately backed off proposing a measure for the November ballot, saying it would require a special July 31 Council meeting to hear city management's "revenue" options and select one in time for an August 7 Council vote to meet a deadline for the November 8 ballot. Richardson stopped short of opposing a November ballot measure; instead he invited (effectively dared) any of his Council colleagues to make such motion...and none did. That effectively deferred the tax increase discussion at that time...until now.
Sponsor
Sponsor
Sponsor
Support really independent news in Long Beach. No one in LBREPORT.com's ownership, reporting or editorial decision-making has ties to development interests, advocacy groups or other special interests; or is seeking or receiving benefits of City development-related decisions; or holds a City Hall appointive position; or has contributed sums to political campaigns for Long Beach incumbents or challengers. LBREPORT.com isn't part of an out of town corporate cluster and no one its ownership, editorial or publishing decisionmaking has been part of the governing board of any City government body or other entity on whose policies we report. LBREPORT.com is reader and advertiser supported. You can help keep really independent news in LB similar to the way people support NPR and PBS stations. We're not non-profit so it's not tax deductible but $49.95 (less than an annual dollar a week) helps keep us online.
