HOUSING BOOM AHEAD? $1 BILLION BOND MEASURE MAY SPUR MASSIVE PROJECTS.Byline: KERRY CAVANAUGH Staff Writer At the bottom of the Nov. 7 ballot is a $1 billion affordable-housing bond measure that could spur a massive, publicly funded building boom in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. over the next decade. Measure H -- the biggest bond in the city's history -- also touches on some of the controversial issues of development, density, homelessness and population growth. Supporters argue that its passage would allow the city to coherently address those issues by concentrating denser, below-market housing near transit lines and moving transients from Skid Row skid row a run-down area frequented by alcoholics. [Am. Culture: Misc.] See : Alcoholism Skid Row district of down-and-outs and bums. [Am. Usage: Brewer Dictionary, 1008] See : Failure into supportive housing Supportive housing is designed to support individuals, not just socially but with basic life skills. Housing is coupled with social services such as job training, alcohol and drug abuse programs and case management. complexes. ``Think about this, a billion-dollar investment in housing with a $6 billion economic impact. We'll see the face of the city change before our very eyes. We'll reconfigure what our city looks like,'' Mayor Antonio Villaraigosa Antonio Ramon Villaraigosa (born Antonio (Tony) Ramon Villar, Jr. on January 23, 1953) is the mayor of Los Angeles, California. He is the first Latino mayor of Los Angeles since Cristobal Aguilar in 1872. said last month at a housing summit to promote Measure H. ``It's an incredible opportunity to remake re·make tr.v. re·made , re·mak·ing, re·makes To make again or anew. n. 1. The act of remaking. 2. Something in remade form, especially a new version of an earlier movie or song. Los Angeles.'' The measure would cost property owners roughly $15 per $100,000 of assessed value -- about $53 for a $350,000 home, and $75 annually for a median-priced $500,000 home. And that bothers Walter Moore, a real-estate broker and high school teacher who is among the most vocal opponents of Measure H. ``I don't see why I have a duty -- having worked hard and saved to buy a home -- to work harder to pay for other people,'' he said. ``It really boils down to what is your vision for the future of the city. Do we tax everyone who lives here to accommodate everyone who wants to live here?'' Too expensive With the average monthly rent in Los Angeles at $1,500, low-income units are priced according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. tenant income, with sample rents ranging from $400 for a two-bedroom apartment to $950 for a four-bedroom unit. ``At times, people don't really remember there are security guards, food service workers, bank workers and a whole lot of people not served by our current housing situation. That's why we've targeted this more to the less well-off, lower-income workers,'' said G. Allan Kingston, president of nonprofit housing developer Century Housing and a co-chairman of the Homes for L.A. Families campaign committee. Kingston and others say Los Angeles is suffering a housing crisis because not enough homes have been built over the past decade to meet population growth -- and the homes that are available are too expensive for most Angelenos. Housing need Just 20 percent of Los Angeles residents can afford to buy today's median-priced, $500,000 house. Still, the need for affordable housing is much greater than the 10,000 units the Measure H bond would provide, said Valley Village resident and apartment owner Victor Viereck. ``There's so much more demand for what is there. You can't overcome that by subsidizing things,'' said Viereck, who sat on the city's housing task force in the late 1990s. ``You're taking from other people who need the money, from a lot of people who are struggling and there's a relatively small percentage of people who would get the benefit.'' Plus, the city has lost more than nearly 12,000 affordable, rent-controlled units over the past five years as property owners demolished de·mol·ish tr.v. de·mol·ished, de·mol·ish·ing, de·mol·ish·es 1. To tear down completely; raze. 2. To do away with completely; put an end to. 3. buildings to develop condominiums or converted rental apartments to condos. Supporters acknowledge that government assistance will still be needed for low- and moderate-income residents despite the cooling real estate market and construction of more market-rate units. ``You cannot provide low-income housing without a subsidy. In a city like Los Angeles, which has very high land prices, you can't even come close on a low and moderate income,'' said Michael H. Schill, dean of the UCLA School of Law The UCLA School of Law is the law school of the University of California, Los Angeles. It is generally regarded as the top law school in Southern California, as well as one of the top fifteen law schools in the United States. and an expert on housing policy. But skeptics counter that Los Angeles, state and federal governments already fund Section 8 rental assistance, low-income housing subsidies and first-time homebuyer First-Time Homebuyer An IRA owner who is exempt from the early-distribution penalty (which applies to IRA distributions that occur before the IRA owner reaches age 59.5) for distributing funds from his or her IRA to buy, build, or rebuild a home when having had no interest in a programs. Plus, there are 626,000 rent-controlled units in the city. ``We're doing plenty now to help, but if you're hellbent on spending money on the poor, take the city's tax revenues and spend some of that on Section 8,'' said Moore, who signed the ballot argument against Prop. H along with anti-tax groups. ``Three quarters of the (bond) money goes to developers, the rest you're taking money to pay for homes for yuppies.'' Developer view Developers scoff at the idea they'll make big bucks building low-income housing. ``All the tax-credit people and affordable-housing-credit people, their profits are regulated by the state and federal government,'' said developer Jeff Lee, who builds condos and houses for low-income and market-rate buyers. ``This is not a get-rich-quick scheme A Get-rich-quick scheme is a plan to acquire high rates of return for a small investment. Most such schemes promise that participants can obtain this high rate of return with little risk. Most get-rich-quick schemes also promise that little skill, effort, or time is required. by building affordable housing. Most of these people would be better off if they went to Palmdale and built $250,000 tract homes.'' And supporters note that Measure H also would require regular audits and an oversight committee appointed by the mayor and council president to advise the Housing Department on how to dole out Verb 1. dole out - administer or bestow, as in small portions; "administer critical remarks to everyone present"; "dole out some money"; "shell out pocket money for the children"; "deal a blow to someone"; "the machine dispenses soft drinks" dollars. The measure also promises criminal penalties for misuse of the funds. Bond supporters say the Housing Department has a good track record of managing the Affordable Housing Trust Fund, and every Los Angeles dollar has been matched by $4 to $5 in private, state and federal dollars. ``It's one of the most successful government programs that we can look to in Los Angeles, and third parties, like the state, reinforce how well we've done,'' said City Council President Eric Garcetti Eric Garcetti (born 1971) is the son of former Los Angeles county district attorney Gil Garcetti, and was elected to the Los Angeles City Council in 2001. He was reelected in 2005. . More importantly, Garcetti said, the trust fund created a transparent, point-based system to award funds, which took politics and influence out of the selection process. ``Quite frankly, if it had been the Housing Department with that money 10 years ago it would have been `Who do you know?' It was very political,'' Garcetti said. ``It's a really clean process now.'' However, there hasn't been a full, independent analysis of the trust fund in recent years. City Controller Laura Chick is auditing the trust fund, but her review will not be complete until later this year. Spending history Records show that since 2003 Los Angeles has spent $183 million in city and federal funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve to help build and rehabilitate re·ha·bil·i·tate v. 1. To restore to good health or useful life, as through therapy and education. 2. To restore to good condition, operation, or capacity. 4,679 rental units in 79 projects. The trust fund generally has paid less than 20 percent of the total construction cost and most developers have received between $1 million and $6 million from the fund, depending on the size and cost of their building. So far, most of the money has been spent in downtown, Central, East and South Los Angeles South Los Angeles is the official name for a large geographic and cultural area lying to the southwest and southeast of downtown Los Angeles, California. The area was formerly called South Central Los Angeles, and is still sometimes called South Central. , in neighborhoods with lots of low-income residents and rundown Rundown A summary of the amount and prices of a serial bond issue that is still available for purchase. rundown A list of available bonds in a municipal issue of serial bonds. rentals. Roughly 12 percent of the funds have been spent on 12 projects in the San Fernando Valley San Fernando Valley Valley, southern California, U.S. Northwest of central Los Angeles, the valley is bounded by the San Gabriel, Santa Susana, and Santa Monica mountains and the Simi Hills. , largely in the communities of North Hills, Pacoima, Van Nuys and Canoga Park. In Van Nuys, L.A. Family Housing received $2 million from the Affordable Housing Trust Fund to build the 30-unit Cecil Younger Gardens apartment house on a vacant lot. The nonprofit paired that with $2.3 million in tax credits, $1.4 million from the state housing bond, and other sources to cover the $7.2 million project. The result is a clean, modern building with roomy apartments, a play area, and a child-care center. Pilar Pilar strong-minded female leader of a group of guerrillas in the Spanish Civil War. [Am. Lit.: Hemingway For Whom the Bell Tolls] See : Female Power Pilar Luna and her three children were crammed cram v. crammed, cram·ming, crams v.tr. 1. To force, press, or squeeze into an insufficient space; stuff. 2. To fill too tightly. 3. a. To gorge with food. into a one-bedroom North Hollywood apartment before they were accepted into Saticoy Gardens. Now they enjoy a brand-new unit with three bedrooms -- enough room to play hide-and-seek in the apartment, 9-year-old Brandon Luna joked. ``When I saw the apartment for the first time, I cried,'' Luna said recently. ``We were uncomfortable and life was stressful before. This is good for my kids.'' kerry.cavanaugh(at)dailynews.com (213) 978-0390 Proposition H A housing bond proposed by the city of Los Angeles
$350 million to provide rental housing for residents earning less than $55,450 annually for a family of four. $250 million for rental housing for the homeless and residents earning less than $20,800 annually for a family of four. $250 million for first-time homebuyers for those earning less than $104,000 a year for a family of four. $150 million to be spent according to a work plan developed by an oversight committee. CAPTION(S): box Box: Proposition H (see text) |
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