Bradley Proposes $2-Billion Fund for Homeless Housing

In an ambitious proposal, Los Angeles Mayor Tom Bradley called Thursday for more than $2 billion in redevelopment funds to be spent over the next two decades to help house the city’s homeless.

In addition, Bradley also proposed that another $100 million be raised through a bond issue to reinforce older buildings--those built before 1933--for additional housing for the homeless. These include structures in the downtown Skid Row area that do not now meet city earthquake standards.

Bradley will unveil his plan this morning at a public hearing on the homeless issue.

The mayor’s plan, however, has a major catch to it. Before any money could be allocated, Bradley would need court backing to lift a 10-year-old order limiting the amount of money that the Community Redevelopment Agency can spend in the Central Business District. State law requires that at least 20% of CRA funds be set aside for low-income housing.

Bradley attorney Mark Fabiani said CRA attorneys are preparing a petition to raise the current $750-million spending ceiling on downtown development to $5 billion. Fabiani said if the court agrees, Bradley will propose that half of the new money--about $2.2 billion--be earmarked for new low-income housing stock, either new construction or rehabilitation, as well as other services for the homeless.

A possible roadblock to such a court order is City Councilman Ernani Bernardi, who in 1975 sued to stop the CRA from collecting tax funds to underwrite downtown development. A San Fernando Valley-area councilman, Bernardi said in that lawsuit that some of the tax funds that were being held downtown for redevelopment should go instead to citywide programs.

In 1977, Bernardi, who was joined by the county in his suit, reached an in-court agreement with the CRA to limit redevelopment spending to the $750-million mark. That ceiling is expected to be reached within four years.

Fabiani said Thursday that Bernardi was approached this week and asked to endorse a lifting of the 1977 ceiling but that the councilman has asked for more information. He added that even if the councilman refuses to go along with the hike, Bradley will move on his own.

“The mayor hopes that both Bernardi and the county will join him in the effort to change the $750-million ceiling,” Fabiani said. He said that when the $750-million limit was established in 1977, the tax-slashing Proposition 13 had not been passed by voters and that more federal funds were available for housing programs.

Last month, the CRA approved a spending program that reduced the amount of redevelopment funds that will be used for low-income housing by $17 million. CRA officials said that changes in the tax laws, removing the tax-exempt status of certain housing bonds, greatly reduced the available money.

Bernardi, reached Thursday night, confirmed that he has had discussions with Deputy Mayor Mike Gage about raising the spending limit. He added, however, that he has not yet made up his mind on the subject.

A longtime critic of city policies dealing with the homeless, Bernardi held out a glimmer of hope that he could be won over by Bradley.

“Now that the mayor is jumping into this, it’s encouraging. . . . I’m willing to sit down with them,” Bernardi said. “They (the CRA) know how long I’ve been advocating CRA funds be used for this (low-income housing) purpose.”

Asked if he might seek a guarantee that half of any new money would go to housing, Bernardi said, “I think half is a good start.” He added that in the past, he has proposed that 70% of redevelopment funds go toward housing for the poor.