Few Benefits in CRA’s Laurel Canyon Proposal

The people and City Councilman Joel Wachs who supported the Community Redevelopment Agency for the Laurel Canyon Commercial Corridor should understand what help the property owners who suffered earthquake damage will really get.

* Absolutely no money will be available to anyone unless the CRA can sell bonds. This could take 10 months or longer.

* No bonds will be sold unless the tax base is expanded within the CRA boundaries to secure those bonds.

* No money will be available to anyone unless the owner of the damaged property has exhausted all other financial resources. The property owner would then have to qualify as a good risk for the CRA loan. This is not free money. It must be repaid with interest.

* For the first seven-year phase of the CRA plan there will only be $1.5 million in bonds sold if they can find a buyer.

* The CRA money can only be used to repair earthquake damage and for no other reason.

* Only union workers at high union wages can be used to do repair work. Your money won’t go very far.

* The plan could last for up to 17 years: Phase one is seven years, with two five-year extensions if approved by the City Council.

* If the CRA does sell bonds, the agency will take about 40% right off the top for operating costs, then 20% as mandated by law for low-income housing, before any money is available to homeowners.

* The complete plan of $5.8 million in property tax will be diverted to the CRA to help secure the bonds. This money would normally go to the city for police, firemen, schools and infrastructure.

* The CRA will take property tax dollars from all properties within the Laurel Canyon Commercial Corridor even if you don’t need or want CRA help, or have already repaired your property, and even if your property was not damaged by the earthquake.

As you can see, this is no free lunch. The CRA has set its hook, and the council areas that have adopted this plan will be paying the piper for a long, long, long time.

Why does the CRA have to sell $5.8 million in bonds when a recent survey shows there is less than $500,000 in property damage left to be repaired?

FLO HANNICK

North Hollywood