COUNCIL PUTS HOUSING BOND ON FALL BALLOT.

Byline: KERRY CAVANAUGH Staff Writer

With support from the business community and housing advocates, the Los Angeles City Council voted Wednesday to put a $1 billion bond measure on the Nov. 7 ballot to fund construction of affordable rental housing and help first-time homebuyers.

The bond measure joins a list of 13 measures already on the state ballot, including a $2.85 billion state housing bond request. City leaders are also considering putting a $1.5 billion bond measure on the ballot to pay for street paving.

If the city housing bond issue is approved by 66 percent of voters, Los Angeles property owners would pay an average of $15 per year per $100,000 assessed value, or $45 annually for a house valued at $300,000.

``For the price of a Frappuccino per month, we can turn the tide of traffic, pollution and housing,'' said Council President Eric Garcetti, who has led the effort for the housing bond measure.

``Every 20 cents we put in produces a dollar, so it's a great investment.''

Business groups, homeless advocates, unions and developers have lined up to support the bond issue, saying the lack of affordable housing has impacted all areas of the city -- from the poorest residents who can't find reasonable rentals to companies whose workers leave the region because they can't afford to buy a home.

``As a lack of work force housing is impacting our communities, companies are not willing to locate or expand in Los Angeles, nor are they able to retain employees because of this deficiency,'' said Michelle Garakian, assistant director of program and policy with the Los Angeles Business Council.

The groups argue the high cost of land and construction material makes it virtually impossible to build affordable housing without some public assistance.

Already the Homes for L.A. Families campaign has raised more than $600,000 from businesses, developers and unions, and expects to raise $3 million for outreach and television ads.

L.A. is among the few cities that have attempted a housing bond measure. San Francisco voters narrowly defeated a proposed $200 million affordable housing bond issue there in 2004.

City voters have generally supported bond measures, approving nine since 1989 to raise money for public libraries, police and fire stations and the zoo. Property owners now pay around $51 per year $100,000 assessed property value on their taxes to fund those city bonds, or roughly $154 for a house valued at $300,000.

Together with property taxes, bonds for school construction, community colleges, flood control and water improvements, city property owners pay about $1,155 per $100,000 in assessed property value.

The $1 billion housing bond would be split this way:

$250 million to provide rental housing for the formerly homeless and residents earning less than $20,800 annually for a family of four.

$350 million to provide rental housing for residents earning less than $55,450 annually for a family of four.

$250 million to provide first-time home buyers assistance to families earning less than $104,000 a year for a family of four.

The rest would be spent according to a work plan established by a citizen and administrative oversight committees.

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SOURCES: Los Angeles County Assessor, Los Angeles County Auditor-Controller

Daily News research