BACKGROUND (Courtesy of the Pacific West Association of Realtors®)
SB 679 creates a finance agency to fund the construction of subsidized housing developments. The agency can also purchase existing residential properties, including single family homes further contributing to the shortage of homeownership opportunities.
SB 679 grants an unchecked tax and bond authority to a 21 member “governing board” that could authorize local ballot initiatives to impose: a parcel tax, gross receipt tax, documentary transfer tax or authorize the issuance of bonds. Any of those taxes or costs on their own would create new burdens for homeowners struggling in a tough economic environment. Furthermore, the bill has no cap on the maximum amount homeowners can be taxed and these taxes could be layered on top of each other.
SB 679 is completely unnecessary and duplicative. There is no need for a costly new bureaucracy to do things that can already be undertaken by Los Angeles County in conjunction with its cities.
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Susan Shelley, VP of Communications at the Howard Jarvis Taxpayer’s Association, was previously on with the AOA USA to discuss SB 679. You may recognize her from her appearance on my program. You can see my discussion with her below.