$1-Billion Affordable Housing Bond Measure May Go to Voters in L.A.

A $1-billion bond measure that would help provide housing for thousands of low-income residents and enable others to become first-time homeowners is likely to appear on the Los Angeles ballot in November.

The proposed bond measure, which could contribute financing for about 1,000 new affordable housing units annually over the next decade, was endorsed unanimously Wednesday by the City Council.

The action drew praise from business leaders, housing advocates, nonprofit developers and others who helped craft the bond proposal.

Backers called the measure a smart venture that would stabilize neighborhoods, boost the economy, and reduce traffic and pollution by supplying new housing closer to jobs.

The money, raised through property tax increases, would boost the amount the city spends to build apartments for the homeless and the working poor, and to subsidize loans for first-time home buyers who might not otherwise qualify for mortgages.

Teachers, police officers, nurses, mechanics and others whose families earn as much as $100,000 would be among those who might qualify for home-buying assistance.

“Good housing improves communities, no matter what income level,” said council President Eric Garcetti, one of the measure’s sponsors. “What we’re talking about is something that gives us the tools to make communities more livable.”

The council voted 13 to 0 to direct the city attorney to draw up an ordinance enabling it to submit the measure to voters.

But the measure will appear on the same November ballot already crowded by five state bond proposals seeking billions in taxpayer money for housing, freeways, parks, schools and levees.

Some supporters worried about “bond fatigue” on the ballot, but proponents said they were confident that local voters would recognize the social and moral imperatives of making affordable housing available.

“There is no housing choice in the city of Los Angeles. Tens of thousands of families can’t find a home that matches their budget,” said Paul Zimmerman, executive director of the Southern California Assn. of Non-Profit Housing.

Zimmerman and others said the bond measure is supported by a diverse and unusual coalition of groups that share at least one common view: Affordable housing is key to the city’s prosperity.

“It is a central issue for the economy in Los Angeles,” said Carol Schatz, president of the Central City Assn., a business advocacy group that has been at the forefront of downtown redevelopment efforts. “This bond is the best way to address low-income housing needs. It’s about filling social needs, too. We want to increase homeownership.”

Just 39% of Los Angeles households own their homes, according to the 2000 census.

The housing measure would try to increase that figure through general-obligation bonds that also would enable the city to leverage an additional $3 billion from other public and private sources.

The measure would add about $75 a year to the property tax bill of a home worth $500,000. The increase would be in place for 20 years.

It would generate $100 million a year for 10 years, creating a steady stream of money that officials say is crucial to maintaining a vigorous affordable-housing program.

Mayor Antonio Villaraigosa called last year for such a bond measure, and a spokeswoman said Wednesday he “will work hard for its passage in November.”

The new bond funds, if approved by voters, would add to the city’s $100-million affordable housing trust that has kick-started new units for the homeless and others with modest incomes.

Democratic political consultant Parke Skelton will run the campaign for the bond measure. He said a recent poll found that 68% of likely voters supported the measure, surpassing the two-thirds approval it will need to pass.

“I think all bonds are about one basic idea: This is not a frill,” Skelton said. “This is something we need to do to address the homeless crisis in the city, to address the affordable housing crisis.”

Also on Wednesday, the council considered a $1.5-billion street-repair bond proposal, also for the November ballot. Several council members questioned whether the timing was right, given the many other tax proposals that will appear on the ballot.

If the council decides to pursue the street-repair measure for the fall election, it must vote to place it on the ballot by Aug. 4.