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HomeMy WebLinkAboutItem 13b - Oppose Indefinite Half-Cent Sales Tax DATE: August 20, 2024 TO: Honorable Mayor and City Council FROM: Dominic Lazzaretto, City Manager By: Justine Bruno, Deputy City Manager SUBJECT: RESOLUTION NO. 7580 OPPOSING THE HOMELESSNESS SERVICES AND AFFORDABLE HOUSING TRANSACTIONS AND USE TAX ORDINANCE PETITION CEQA: Not a Project Recommendation: Adopt SUMMARY At the regular City Council Meeting on December 19, 2023, then-Mayor Verlato received support from two City Council Members to prepare a Resolution in opposition of a permanent half-cent sales tax proposal for Los Angeles County. Resolution No. 7580 expresses the City Council’s opposition to an indefinite half-cent sales tax proposal known as the Homelessness Services and Affordable Housing Transactions and Use Tax initiative due to its lack of local return surety and for exceeding the established limit on local sales tax rates. It is recommended that the City Council adopt Resolution No. 7580 in opposition to this ballot measure. BACKGROUND Measure H, a sales tax to fund services for the homeless, was passed by Los Angeles County voters on March 7, 2017. The Measure passed with nearly 70% of the vote and levied a ¼ cent sales tax for 10 years to fund mental health, substance abuse treatment, health care, education, job training, rental subsidies, emergency and affordable housing, transportation, outreach, prevention, and supportive services for homeless children, families, foster youth, veterans, battered women, seniors, disabled individuals, and other homeless adults. The proponents of Measure H promised that the funding would be used to end homelessness for the nearly 45,000 unhoused individuals (at the time) across Los Angeles County and prevent an estimated 30,000 from becoming homeless. More than seven years after its approval, Measure H has achieved certain success with permanent supportive housing, rental subsidies, street outreach, emergency shelter, transitional housing, and prevention services; however, the billions of dollars generated by Measure Resolution No. 7580 – Oppose Indefinite Half-Cent Sales Tax August 20, 2024 Page 2 of 4 H since its approval in 2017 have not been able to reduce the growing number of homeless individuals and families in Los Angeles County. In January 2024, the point-in-time count conducted by the Los Angeles Homeless Services Authority (“LAHSA”) showed that the number of homeless across L.A. County (excluding Glendale, Pasadena, and Long Beach) has risen to 71,201. This represents a 29% increase in homeless individuals from the 55,048 that were counted in 2017, when Measure H was first approved. While homelessness affects all communities, the vast majority of funding flows to the County and City of Los Angeles, leaving very few dollars for local programming. Annually, approximately $3.2 million is generated in Arcadia to fund Measure H programs and services. In FY 2023-24, the City estimates it received just $50,000 directly from Measure H, a rate of return of just 1.5%. Since Measure H collections first began in Fiscal Year 2017-18, Arcadia has received an estimated 3.5%, or $712,005 in direct funding, of the $20 million that has been generated in total by the City. DISCUSSION Measure H was originally projected to generate over $350 million annually. Recent estimates place annual revenues at over $520 million. The proposed Homelessness Services and Affordable Housing Transactions and Use Tax measure seeks to more than double that amount by increasing the tax from ¼ cent to ½ cent, removing certain exemptions, and lifting the time limit altogether. The measure promises to include more accountability and efficiency than the current Measure H without providing significant details on how that would be achieved. Likewise, the proposal promises increased local funding without any specific guarantees for individual local governments. In June, the L.A. County Registrar-Recorder/County Clerk certified that this initiative qualified for the November ballot with 393,293 valid signatures. Without alteration, the ordinance petition was submitted by the Los Angeles County Board of Supervisors and will be placed before voters this November. The indefinite ½ cent sales tax proposal will more than double annual funding for homelessness and mental health services, with estimates topping $1.2 billion annually. Without debating the effectiveness of Measure H and its various outcomes, the proposed initiative violates a core promise Arcadia made to its residents when Measure A was being considered and ultimately approved by the City’s voters in 2019. During the 2019 election, state law made it impossible to have a transaction and use tax for general or specific purposes in Los Angeles County, which exceeded the 2% statutory limitation. Arcadia’s Measure A – a ¾ cent sales tax proposal, promised locally controlled revenue that would place the City at the 2% cap. Voters approved Measure A under this premise and voted to maintain key public safety services like Police and Fire, as well as the continued maintenance of residential neighborhoods, parks, and Resolution No. 7580 – Oppose Indefinite Half-Cent Sales Tax August 20, 2024 Page 3 of 4 commercial spaces. By all accounts, the Measure A sales tax has helped Arcadia weather the COVID-19 pandemic with certainty and strength. In February 2023, Assembly Bill 1679 (“AB 1679”) was introduced by Assemblymember Miguel Santiago, which ultimately paved the way for Los Angeles County to exceed the 2% statutory cap on local sales and use taxes. After AB 1679 was approved by Governor Newsom in October 2023, Los Angeles County was able to propose a transaction and use tax that exceeded the 2% statutory limitation, as long as the funding generated from the tax was dedicated to preventing and mitigating homelessness in the County. Importantly, by December 31, 2028, if any ordinance proposing a transaction and use tax has not been approved in Los Angeles County, the Chapter authorizing the transaction and use tax rate above the 2% cap is effectively repealed. With the proposed measure, the overall sales tax rate in Arcadia would rise from 10.25% to 10.5%; this was impossible before the passage of AB 1679. To uphold the commitment made to the community when Measure A was proposed, it is recommended that the City Council oppose the Homelessness Services and Affordable Housing Transactions and Use Tax initiative, by adopting Resolution No. 7580. ENVIRONMENTAL ANALYSIS The proposed resolution does not constitute a project under the California Environmental Quality Act (“CEQA”), as it can be seen with certainty that it will have no impact on the environment. FISCAL IMPACT If the Homelessness Services and Affordable Housing Transactions and Use Tax initiative is passed by L.A. County voters in November, the overall sales tax rate in Arcadia would rise from 10.25% to 10.5%. While additional funds would be expected to flow into Arcadia to address homelessness, it is expected to be a very small percentage of the millions of extra dollars generated annually from the additional tax burden placed on shoppers in Arcadia. RECOMMENDATION It is recommended that the City Council determine that this action is exempt under the California Environmental Quality Act (“CEQA”); and adopt Resolution No. 7580 opposing the Homelessness Services and Affordable Housing Transactions and Use Tax Ordinance Petition. Attachment No. 1: Resolution No. 7580 Attachment No. 2: Los Angeles County Registrar-Recorder/County Clerk Certificate of Initiative Petition Attachment No. 3: Resolution No. 7267 Resolution No. 7580 – Oppose Indefinite Half-Cent Sales Tax August 20, 2024 Page 4 of 4 Attachment No. 4 Countywide Measure 1 (Measure H) Ballot Language – Los Angeles County Plan to Prevent and Combat Homelessness Attachment No. 5: Los Angeles County Ordinance No. 2017-0001 Attachment No. 6: Affordable Housing, Homelessness Solutions & Prevention Now presentation from Proponents 1 RESOLUTION NO. 7580 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, OPPOSING THE HOMELESSNESS SERVICES AND AFFORDABLE HOUSING TRANSACTIONS AND USE TAX ORDINANCE PETITION WHEREAS, Homelessness is both a local and regional issue that has intensified across Los Angeles County, requiring interagency collaboration, funding, and services; and WHEREAS, Measure H was approved in 2017 by 69.34% of the voters of Los Angeles County, levying a ¼ cent transactions and use tax for a period of 10 years; and WHEREAS, Revenue generated by the ¼ cent tax has been used to fund mental health, substance abuse treatment, health care, education, job training, rental subsidies, emergency and affordable housing, transportation, outreach, prevention, and supportive services for homeless children, families, foster youth, veterans, battered women, seniors, disabled individuals, and other homeless adults; and WHEREAS, Funding generated by Measure H was intended to end homelessness for the 55,048 unhoused individuals counted across Los Angeles County in 2017; and WHEREAS, In 2024, the Los Angeles Homeless Services Authority (LAHSA) count of unhoused individuals has risen to 71,201, a 29 percent increase since 2017 when Measure H was first approved; and WHEREAS, Measure H has generated an estimated $335 - $520 million annually since its initial approval in 2017; and WHEREAS, Over $20 million in tax revenue for Measure H has been collected Attachment No. 1 2 from Arcadia since 2017, with the City only receiving 3.5%, or $700,000 in direct funding across that same timespan; and WHEREAS, The Homelessness Services and Affordable Housing Transactions and Use Tax Ordinance Petition has been deemed qualified by the Los Angeles County Registrar-Recorder/County Clerk, for the November 5, 2024, General Election; and WHEREAS, The Homelessness Services and Affordable Housing Transactions and Use Tax Ordinance Petition will repeal and replace Measure H with an indefinite, ½ cent sales tax; and WHEREAS, In 2019, Arcadia voters approved Measure A, a local sales tax proposal to support public safety and community maintenance, placing the City at the local sales tax maximum of 2.0%; and WHEREAS, The Homelessness Services and Affordable Housing Transactions and Use Tax Ordinance Petition will raise the overall sales tax rate in Arcadia to 10.5%, beyond the 10.25% limit that was promised to residents. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. The City Council of the City of Arcadia supports effective methods to reduce the number of unhoused individuals residing in Arcadia and Los Angeles County. SECTION 2. The City Council of the City of Arcadia opposes the Homelessness Services and Affordable Housing Transactions and Use Tax Ordinance Petition, an indefinite, ½ cent sales tax proposal that has qualified for the November 5, 2024, Ballot. SECTION 3. The City Clerk shall certify to the adoption of this Resolution. 3 Passed, approved, and adopted this 20th day of August, 2024. ________________________ Mayor of the City of Arcadia ATTEST: _____________________ City Clerk APPROVED AS TO FORM: ______________________ Michael J. Maurer City Attorney DEAN C. LOGAN Registrar-Recorder/County Clerk LOS ANGELES COUNTY REGISTRAR-RECORDER/COUNTY CLERK June 25, 2024 TO: FROM: Supervisor Lindsey P. Horvath, Chair Supervisor Hilda L. Solis Supervisor Holly J. Mitchell Supervisor Janice Hahn Supervisor Kathryn Barger Dean C. Logan�1 � Registrar-RecordiH'�o-unty Clerk ADOPTED BOARD OF SUPERVISORS COUNTY OF LOS ANGELES 40 June 25, 2024 cdMod� EDWARD YEN EXECUTIVE OFFICER CONSIDER OPTIONS FOR THE HOMELESSNESS SERVICES AND AFFORDABLE HOUSING TRANSACTIONS AND USE TAX ORDINANCE PETITION (ALL SUPERVISORIAL DISTRICTS) (3 VOTES) This is to inform you that the review of the Homelessness Services and Affordable Housing Transactions and Use Tax Ordinance Petition, received on May 7, 2024, was completed by my office. The review of petition signatures was conducted in accordance with California Government Code, Elections Code, and Code of Regulations. In accordance with Elections Code Section 9115, my office examined the signatures on the initiative petition using a random sampling technique (i.e., verifying a random 3 percent sample of the signatures in the Petition) and found the petition to be sufficient. Enclosed is the certificate reporting the results of the signature verification. Pursuant to Elections Code Section 9118, the Board shall either: 1.Submit the ordinance, without alteration, to the voters pursuant to Elections Code Section 1405; or 2.Order a report pursuant to Section 9111 at the regular meeting at which the certification of the petition is presented and direct the report to be presented no later than 30 days therefrom. When the report is presented to the board of supervisors, the board shall order an election by submitting the ordinance, without alteration, to the voters pursuant to Section 1405. 12400 IMPERIAL HIGHWAY, NORWALK, CA 90650 LAVOTE GOV HOA.104829250-1 Attachment No. 2 Honorable Board of Supervisors June 25,2024 Page2 If you have any questions or require additional information, please contact me at (562)462-2716 or email dlogan@rrcc.lacounty.gov. Your staff may also contact Chief Deputy Jeramy Gray at (562) 462-2883 or email jgray@rrcc.lacounty.gov. DCL:JG:MF AL:EC:cc c: Fesia A. Davenport, Chief Executive Officer Edward Yen, Executive Officer, Board of Supervisors County Counsel 12400 IMPERIAL HIGHWAY, NORWALK, CA 90650 LAVOTE GOV HOA.104829250.1 Los Angeles County Registrar-Recorder/County Clerk CERTIFICATE OF INITIATIVL PETITION I, DEAN C. LOGAN, Registrar-Recorder/County Clerk of the County of Los Angeles, of the State of California, DO HEREBY CERTIFY: That the HOMELESSNESS SERVICES AND AFFORDABLE HOUSING TRANSACTIONS AND USE TAX ORDINANCE petition was filed with this office on May 7, 2024. That said petition consists of 43,248 sections; containing 393,293 signatures; That each section contains signatures purporting to be the signatures of qualified electors of this county; That attached to this petition at the time it was filed was an affidavit purporting to be the affidavit of the person who solicited the signatures, and containing the dates between which the purported qualified electors signed this petition; That the affiant stated his or her own qualifications, that he or she had solicited the signatures upon that section, that all of the signatures were made in his or her presence, and that to the best of his or her knowledge and belief each signature to that section was the genuine signature of the person whose name it purports to be; That after the proponent filed this petition, I verified the required number of signatures by examining the records of the registration in this county, current and in effect at the respective purported dates of such signing, to determine what number of qualified electors signed the petition, and from that examination I have determined the following facts regarding this petition: 1.Number of signatures filed by proponent: 393,293 2.Number of signatures verified (3%): 11,800 3.Number of signatures found VALID: 8,649 4.Number of signatures CHALLENGED: 3,151 5.Number CHALLENGED because DUPLICATE: 1 6.Required number of valid Signature:238,922 7.Proje cted number of valid signatures (from 3% random Sample): 287,217 (120%) IN WITNESS WHEREOF, I have here unto set my hand and a my official seal this 18th day of June 2024. � C. l--XfJA-- DEAN C. LOG� Registrar-Recorder/County Clerk County of Los Angeles RESOLUTION NO. 7267 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, RECITING THE FAC T OF THE SPECIAL MUNICIPAL ELECTION HELD ON JUNE 4, 2019, DECLARING THE RESULTS AND SUCH OTHER MA TIERS AS PROVIDED BY LAW WHEREAS, a Special Municipal Election was held and conducted in the City of Arcadia, California, on Tuesday, June 4, 2019, as required by law; and WHEREAS, notice of the special election was given in time, form and manner as provided by law; in all respects the election was held and conducted and the votes were cast, received and canvassed and the returns made and declared in time, form and manner as require d by the provisions of the Elections Code of the State of California for the holding of elections in charter cities; and WHEREAS, pursuant to Resolution No. 7247, dated March 5, 2019, the County Elections Department canvassed the returns of the election and has certified the results to this City Council, and the results are received, attached and made a part hereof as Exhibit "A". NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. The whole number of vote by mail ballots cast was 7,559. SECTION 2. The measure voted upon at the election is as follows: MEASURE A "ARCADIA PUBLIC SAFETY, CITY SERVIC ES, AND ACCOUNTABILITY MEASURE. To maintain 9-1-1 emergency response times, including to home break-ins and thefts; neighborhood, school and park police patrols, fire/paramedic services, fire station operations, emergency preparedness; retain/attract local businesses; maintain streets/infrastructure; provide other 1 Attachment No. 3 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS: CITY OF ARCADIA ) I, GENE GLASCO, City Clerk of the City of Arcadia, hereby certifies that the foregoing Resolution No. 7267 was passed and adopted by the City Council of the City of Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said Council held on the 16th day of July, 2019 and that said Resolution was adopted by the following vote, to wit: AYES: Beck, Chandler, Tay, and Verlato NOES: None ABSENT: Amundson 3 I . Exhibit "A" -E(M cA� � .-� 1l6�-1l6�;�� � Certlftcalt of the Canvass of the Elactlon Rebns 1, DEAN C. LOGAN, Registrar-Recorder/County Clerk of the County of Los Angeles, of the State of California, DO HEREBY CERTIFY that pursuant to the provisions of Seed.on 15300 et seq. of the California Elections Code, I did canvass the returns of the votes cast for each elective office and/or measure(s) for at the Municipal and Special Elections, held on the 4th day of June, 2019. I FURTHER CERTIFY that the Statement of Votes Cast, to which this certificate is attached, shows the total number of ballots cast in said jurisdiction, and that the 1 whole number of votes cast for each candidate and/or measure(s) in said jurisdiction in each of the respective precincts therein, and the totals of the respective columns and the totals as shown for each candidate and/or measure(s) are full, true and correct. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal this 21st day of June, 2019. • t ;:.,... �" I .� �# r:7" S 411G£.tE �C,��V'--DEANC. LOGA Registrar-Recorder!Coun y Clerk County of Los Angeles COUNTY OF LOS ANGELES· FtlAI. OFFICIAL STATEMENT OF VOTES CAST ��NCi:_ .. . . -LOCATION SENATE DISTRICT 33 6PECIAL GENERAL ELECTION (AND MUNICIPAi. MD SPECIAi. ELECTIONSI l CJTV Of ARCADlA SPC MUNI MEASURE A •• -----;EGIST :·: ·a�orsRATION I CAST Jl ! � I 3.1 ·PAGE• BSot 1(11 J I ���•--· SER1A1.E001 J 263�• • � an-�-I --� TOTAi. ____ 2631 806 au •-_ ARCADIA· 0350017A' 'l:1'l1 o1 0 0 VOTE BY MAL SERIAL 6002 0 883· 580 300 TOTAi. 27V 8831 580 300 ARCADIA-035DCXIJA' 4437 836.io o o I ------+-------4--_!_ -t. -t--i VOTE BY MAil SERIAL 6003 0 ..,. 525 307 ! TOTAL � 525 YJ7 ARCADIA· 035003!A' 3137 0' 0 I VOTE BY MAil SERIAL 600( I O 740 44B I 291 '. TOTAi. 3137 740 448 1 291 _ _ AACADIA·035003BA' I 3315 VOTE BY MAIL SERIAL �005 0 339 TOTAL 3315 339 �-0350042A' 2794 ol - VOTE BY M�L SERIAL 6006 0 2171 TOTAi. ________ 2794 217 ARCAOiA. 0350049,V-•• ··2119 - 0 VOTE BY MAIL SERIAL 6007 O 245 TOTAi. ____ 2719 5891 341 245, __ _l ________ 1 ARCADIA ·03SOOSOA' I 2352 0 0 0 ! • VOTE BY MAIL SERIAi. 6008 I O 5891 373 214 • �A-03600628' ______ •• -7-= �9..,..10391·--j :� ! -+ VOTE BY MAIL SERIAL 8009 o1 '""' ,.,.. TOTAL l � J913 1145395_0 2640 I J ARCAO!A·0350104A' --2485 VOTE BY MAIi. SERIAL 6010 0 257 I TOTAi. • __ .l,485 ___ Tl-m, , _________ _ I -- COUNTY OF LOS ilHGaE'S -- ANAi. OFFICIAL STATDIEITT OF VOTES CAST ���� LOCATION PREciNcTTOTAL VBMTOT"l GROUP TOTAL GRAIi! TOT"l SEN"TE DISTRICT 33 SPECIAL GENEAAI. a.ECTION (ANO MUNICIPo\l. .\ND SPECIM. aECTIONS) REGIST • I BAI.LOTS --_ RATION� CAST 29682 0 0 7559 D. 0 --29682 � I I I!I I I ' I I I I ---- CITYOF AACMllA SPC MUNI MEASURE" -- JP �t-ff ·o �11 0 4911 I I I I I I I ! I I l I r I I I I -- - -- I I O&'Ol/19 - t -- I I I I i I I I I I 3.2 -PAGE· 88of 102 EXHIBIT i - -- •A• f--- - CONSOLIDATED MUNICIPAL AND SPECIAL ELECTIONS MARCH 7, 2017 MEASURES APPEARING ON THE BALLOT COUNTYWIDE MEASURE – (1) LOS ANGELES COUNTY H – Los Angeles County Plan to Prevent and Combat Homelessness. To fund mental health, substance abuse treatment, health care, education, job training, rental subsidies, emergency and affordable housing, transportation, outreach, prevention, and supportive services for homeless children, families, foster youth, veterans, battered women, seniors, disabled individuals, and other homeless adults; shall voters authorize Ordinance No. 2017-0001 to levy a ¼ cent sales tax for ten years, with independent annual audits and citizens’ oversight? LOCAL JURISDICTION MEASURES – (13) ARCADIA UNIFIED SCHOOL DISTRICT A – ARCADIA TEACHER AND ACADEMIC INSTRUCTION PROTECTION MEASURE. To keep Arcadia schools among the best in California by renewing approximately $4.3 million in annual local funding the state cannot take away, shall Arcadia Unified School District continue attracting/retaining quality teachers; keeping schools safe/clean; protecting quality math, science, technology, reading, writing, art and music programs by extending the expiring school parcel tax at $288 per parcel annually for 18 years, requiring independent oversight/audits, senior exemptions, and all funds used locally to maintain quality education? BELL CITY T – Shall the ordinance, to permit the Council to levy generally on visitors to the City a maximum 12% tax on hotel/motel charges, estimated to annually raise $285,000 for general City purposes, including for law enforcement and street repairs, and without a sunset clause, be adopted? BELLFLOWER CITY B – CANNABIS TAX. Shall the proposition imposing a tax on cannabis related businesses operating within the City of Bellflower be adopted? COVINA CITY CC – To continue to provide about $5 million annually to preserve essential City services like Police, Fire, Parks, Library, Recreation and Public Works and other local programs and general services, shall an ordinance be adopted to extend the City of Covina’s current 6% utility users tax on telephone, gas, electricity and water services to March of 2029, without raising the rate of the tax or taxing any additional utility services? S:\ECS\WORD\W006MeasuresAppearing\2017\ConsolidatedMunicipalandSpecialElections\MeasuresAppearingonBallot3717.doc 1 Revised 12 22 16 LOS ANGELES COUNTY REGISTRAR-RECORDER/COUNTY CLERK ELECTION COORDINATION UNIT (562) 462 - 2912 Attachment No. 4 MEASURES APPEARING ON THE BALLOT (Continued) CUDAHY CITY PS – Shall the 2017 Temporary Public Safety Funding Ordinance imposing an excise tax of $139 per parcel per year on single-family and unimproved property; $181 per dwelling per year on multifamily property; and between $1,550 to $49,600 per parcel per year on industrial, commercial, mobilehome park and other nonresidential properties be adopted for 5 years to raise approximately $2,000,000 per year to pay for approximately half of the City’s annual cost of providing police protection services? LOS ANGELES CITY M – CANNABIS REGULATION AFTER CITIZEN INPUT, TAXATION AND ENFORCEMENT. PROPOSITION M. Shall an ordinance providing for enforcement, taxation and regulation of cannabis and/or cannabis products (cannabis) by: 1) providing that the City Council retains the authority to amend existing and adopt new regulations regarding cannabis activity in the City after conducting public hearings regarding various aspects of the commercialization of cannabis and medical cannabis, and giving priority in the processing of applications to existing medical marijuana dispensaries operating in compliance with current City law; 2) authorizing criminal penalties, nuisance abatement, increased civil fines and disconnection of water and power utilities for unauthorized cannabis activities; and 3) establishing new business taxes, effective January 1, 2018, including taxes of $100 per each $1,000 of gross receipts from cannabis sales and $50 per each $1,000 of gross receipts from medical cannabis sales, $10 per each $1,000 of gross receipts from cannabis transportation, testing or research, and $20 per each $1,000 of gross receipts from cannabis manufacturing, cultivation or other commercialization of cannabis; be adopted? LOS ANGELES CITY N – CANNABIS ACTIVITY PERMITS, REGULATION AND TAXATION. INITIATIVE ORDINANCE N. Shall an ordinance establishing a City permitting program for cannabis activity, prioritizing existing medical marijuana businesses compliant with current City law (MMBs) and maintaining 135 dispensaries in the City unless increased by the City Council, including by: 1) authorizing the City to issue permits for cannabis activity including cultivation, manufacture and sale of medical cannabis; 2) providing existing compliant MMBs a limited time to register for initial permits for specified cannabis activity and other priority in the permitting process; 3) allowing permitted cannabis activity in certain non-residential zones; 4) providing operational standards and minimum-distance requirements from schools and other sites; 5) authorizing fines and other penalties for non-permitted cannabis activity but limit enforcement procedures for violations of the ordinance by permit holders; and 6) allowing permittees to operate as adult use marijuana businesses and impose a tax of $80 per each $1,000 of gross receipts from adult use marijuana sales if state law changes to allow non-medical adult use of marijuana; be adopted? S:\ECS\WORD\W006MeasuresAppearing\2017\ConsolidatedMunicipalandSpecialElections\MeasuresAppearingonBallot3717.doc 2 Revised 12 22 16 MEASURES APPEARING ON THE BALLOT (Continued) LOS ANGELES CITY P – MAXIMUM TERM OF HARBOR DEPARTMENT LEASES. CHARTER AMENDMENT P. Shall the City Charter be amended to increase the maximum term for franchises, concessions, permits, licenses and leases that may be entered into by the Harbor Department from the current maximum of 50 years to a new maximum of 66 years, to be consistent with recent changes to state law? LOS ANGELES CITY S – BUILDING MORATORIUM; RESTRICTIONS ON GENERAL PLAN AMENDMENTS; REQUIRED REVIEW OF GENERAL PLAN. INITIATIVE ORDINANCE S. Shall an ordinance amending City laws related to the General Plan, including to: 1) impose a two-year moratorium on projects seeking General Plan amendments or zone or height- district changes resulting in more intense land use, an increase in density or height, or a loss of zoned open space, agricultural or industrial areas, with exceptions including for affordable housing projects and projects for which vested rights have accrued; 2) prohibit geographic amendments to the General Plan unless the affected area has significant social, economic or physical identity (defined as encompassing an entire community or district plan area, specific plan area, neighborhood council area or at least 15 acres); 3) require systematic, public review of the General Plan every five years; 4) prohibit project applicants from completing environmental impact reports for the City; 5) require the City make findings of General Plan consistency for planning amendments, project approvals and permit decisions; and 6) prohibit certain parking variances; be adopted? MONTEREY PARK CITY LL – LIBRARY TAX. Shall the proposition renewing a special parcel tax for library services at the Monterey Park Bruggemeyer Library be adopted? PALOS VERDES ESTATES CITY D – Shall an ordinance be adopted that continues a levy of the existing special tax for a period of twelve (12) years on each eligible parcel in the City at the initial base rate of $342.34 plus $0.196073 per square foot of building improvement effective July 1, 2017, and maintains the existing 6.2% limit on annual adjustments, initially generating approximately $4.7 million annually to finance fire suppression and paramedic services? REDONDO BEACH CITY C – Shall Redondo Beach approve amendments to its Coastal Land Use Plan Implementing Ordinance (partially adopted in 2010 in Measure G) to provide additional analytical procedures and additional limits reducing the amount and type of development in the Coastal Commercial Zones and the Parks, Recreation, and Open Space Zone (Seaside Lagoon), located in the Redondo Beach King Harbor-Pier area? SAN FERNANDO CITY SF – 2017 Administrative and Election Cost Reduction Measure: Shall the office of City Treasurer be appointive? S:\ECS\WORD\W006MeasuresAppearing\2017\ConsolidatedMunicipalandSpecialElections\MeasuresAppearingonBallot3717.doc 3 Revised 12 22 16 Title 4 - REVENUE AND FINANCE Chapter 4.73 TRANSACTIONS AND USE TAX TO PREVENT AND COMBAT HOMELESSNESS Los Angeles County, California, Code of Ordinances Created: 2024-08-08 11:11:49 [EST] (Supp. No. 139) Page 1 of 9 Chapter 4.73 TRANSACTIONS AND USE TAX TO PREVENT AND COMBAT HOMELESSNESS 4.73.010 Title. This Chapter shall be known as the "Transactions and Use Tax to Prevent and Combat Homelessness" ordinance. The County of Los Angeles hereinafter shall be called "County." This ordinance shall be applicable in the incorporated and unincorporated territory of the County. (Ord. 2017-0001 § 1, 2017.) 4.73.020 Operative Date. Except as provided for in Section 4.73.050, the "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. (Ord. 2017-0001 § 1, 2017.) 4.73.030 Purpose. This ordinance is adopted to achieve the following and directs that the provisions hereof be interpreted in order to accomplish those purposes: A.To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with section 7251) of Division 2 of the Revenue and Taxation Code and section 7285.5 of Part 1.7 of Division 2 which authorizes the County to adopt this tax ordinance which shall be operative if two thirds of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B.To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C.To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefor that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D.To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. E.To adopt a retail transactions and use tax ordinance for the specific purpose of preventing and combatting homelessness within Los Angeles County. Revenues generated by the retail transactions and use tax shall be used to sustain the implementation of the County's Homeless Initiative's recommended strategies, adopted by the Board of Supervisors on February 9, 2016, and as otherwise directed by the Board of Supervisors to address the causes and effects of homelessness, consistent with this Chapter. Attachment No. 5 Created: 2024-08-08 11:11:49 [EST] (Supp. No. 139) Page 2 of 9 (Ord. 2017-0001 § 1, 2017.) 4.73.040 Expenditure Plan. A. Consistent with Subsection E of Section 4.73.030, above, the revenues generated by the retail transactions and use tax will be expended by the County pursuant to an expenditure plan approved by the Board of Supervisors prior to June 30th of each year. The annual expenditure plan will include, but not be limited to, the following projects: 1. Prevent Homelessness: a. Homeless Prevention Program for Families; b. Homeless Prevention Program for Individuals. 2. Subsidize Housing: a. Expand Rapid Rehousing; b. Provide subsidized housing to homeless disabled individuals pursuing Supplemental Security Income; c. Facilitate utilization of federal housing subsidies; d. Family reunification housing subsidies; e. Interim/bridge housing for those exiting institutions. 3. Provide Case Management and Services: a. Mental health, substance use, and counseling services; b. Regional Integrated Re-entry Network; c. Jail In-reach; d. Criminal Record Clearing Project; e. Provide services for Permanent Supportive Housing. 4. Increase Income: a. Increase employment for homeless adults by supporting social enterprise; b. Subsidized employment for homeless adults; c. Countywide Supplemental Security/Social Security Disability income, and Veterans benefits advocacy. 5. Create a Coordinated System: a. Expand the Countywide Outreach System; b. Strengthen the Coordinated Entry System; c. Enhance the Emergency Shelter System; d. Enhance services for transition age youth. 6. Affordable Housing for the Homeless: a. Preserve current affordable housing; b. Promote the development of affordable housing for homeless families and individuals. Created: 2024-08-08 11:11:49 [EST] (Supp. No. 139) Page 3 of 9 7. Other services to address the causes and effects of homelessness. B. To the extent feasible, revenues from the retail transactions and use tax shall be used to leverage additional public and private resources to address the causes and effects of homelessness, consistent with this Chapter. C. Revenues from the retail transactions and use tax may be awarded as grants to public agencies and non- profit organizations to address the causes and effects of homelessness, consistent with this Chapter. The Board of Supervisors shall adopt policies and procedures for the solicitation and award of such grants. Nothing herein precludes the County from using revenue generated by the retail transactions and use tax for contracting with for-profit contractors and private businesses in compliance with applicable law. (Ord. 2017-0001 § 1, 2017.) 4.73.050 Special Account. Any retail transactions and use tax proceeds shall be deposited in a special account, created and maintained by the County, and used only for the specific purposes identified in Subsection E of Section 4.73.030, above, in accordance with Section 4.73.030, above. (Ord. 2017-0001 § 1, 2017.) 4.73.060 Community Oversight and Accountability. A. The Citizen's Homelessness Initiative Oversight Advisory Board ("Advisory Board") is hereby created. B. The Advisory Board shall be comprised of five members appointed by the Board of Supervisors. Each Supervisorial District shall nominate one member for appointment by the Board of Supervisors. The Advisory Board shall include at least one member that meets each of the following criteria: 1. A professional from the field of municipal/public finance and/or accounting and budgeting with a minimum of ten years of relevant experience in evaluating financial transactions and program cost- effectiveness; and 2. An individual working in the homelessness services, research, or advocacy field in a management position with a minimum of ten years of relevant experience. The Advisory Board members shall be governed by and comply with State conflict of interest laws (e.g., Government Code section 87000 et seq.; and section 1090 et seq.) and the County's conflict of interest policies. The members shall have no legal action pending against Los Angeles County and are prohibited from acting in any activity directly or indirectly involving funding provided through this ordinance during their tenure on the Advisory Board. Advisory Board members shall not have direct interest or employment with any public or private entity, which receives funding provided through this ordinance. C. The Advisory Board shall do all of the following: 1. Semi-annual review of all expenditures from the retail transactions and use tax; 2. Publish a complete accounting of all allocations each year, posting the information on the County's publicly accessible Internet Web site; in a downloadable spreadsheet format, including information about the location and footprint of each funded project, its objectives, status, and outcomes, any matching funds used, and the applicable program from the expenditure plan schedule; 3. Submit periodic evaluations to the County of the retail transactions and use tax expenditures, which may at the Board of Supervisors' direction be undertaken by independent researchers, identifying any changes needed to meet the objectives of the Homeless Initiative. Created: 2024-08-08 11:11:49 [EST] (Supp. No. 139) Page 4 of 9 D. Members of the Advisory Board shall serve for a term of four years at the pleasure of the Board of Supervisors, and no member may serve more than two consecutive four-year terms. The Board of Supervisors may, by order, extend this length of service or waive this limit for individuals or the Advisory Board as a whole. A member's position shall become vacant upon his or her death, resignation, or removal by the Board of Supervisors. In the case of such a vacancy, the Supervisorial District from which the vacancy arose shall nominate a successor for appointment by the Board of Supervisors to fill the unexpired term. E. Members of the Advisory Board shall not be compensated for their service, but may be reimbursed for actual and necessary expenses incurred in the performance of their duties. (Ord. 2017-0001 § 1, 2017.) 4.73.070 Accountability Measures. For so long as any proceeds of the retail transactions and use tax remain unexpended, the Auditor-Controller shall cause a report to be prepared by an independent auditor and filed with the Board of Supervisors no later than December 31st of each year, stating: (i) the amount of retail transactions and use tax proceeds collected and expended in such year; and (ii) the status of any projects or description of any services or programs funded from proceeds of the retail transactions and use tax. (Ord. 2017-0001 § 1, 2017.) 4.73.080 Contract with State. Prior to the operative date, the County shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the County shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. (Ord. 2017-0001 § 1, 2017.) 4.73.090 Transactions Tax Rate. For the privilege of selling tangible personal property at retail, a transaction tax is hereby imposed upon all retailers in the incorporated and unincorporated territory of the County at the rate of 0.25% of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory for a period of ten (10) years beginning on and after the operative date of this ordinance. (Ord. 2017-0001 § 1, 2017.) 4.73.100 Place of Sale. For the purpose of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the State sales and use tax, regardless of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. (Ord. 2017-0001 § 1, 2017.) Created: 2024-08-08 11:11:49 [EST] (Supp. No. 139) Page 5 of 9 4.73.110 Use Tax Rate. A use tax is hereby imposed on the storage, use or other consumption in the County of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of 0.25% of the sale price of the property for a period of ten (10) years beginning on and after the operative date of this ordinance. The sales price shall include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made. (Ord. 2017-0001 § 1, 2017.) 4.73.120 Adoption of Provisions of State Law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. (Ord. 2017-0001 § 1, 2017.) 4.73.130 Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this County shall be substituted therefor. However, the substitution shall not be made: 1. When the word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. Where the result of that substitution would require action to be taken by or against this County or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the State under the said provision of that code. 4. In sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word "County" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in section 6203 of the Revenue and Taxation Code, and in the definition of that phrase in section 6203. (Ord. 2017-0001 § 1, 2017.) Created: 2024-08-08 11:11:49 [EST] (Supp. No. 139) Page 6 of 9 4.73.140 Permit Not Required. If a seller's permit has been issued to a retailer under section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. (Ord. 2017-0001 § 1, 2017.) 4.73.150 Exemptions and Exclusions. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the County in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the County which is shipped to a point outside the County, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the County shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with section 9840) of the Vehicle Code by registration to an out- of-County address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-County and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this County of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state- administered transactions and use tax ordinance. Created: 2024-08-08 11:11:49 [EST] (Supp. No. 139) Page 7 of 9 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in sections 6366 and 6366.1 of the Revenue and Taxation Code. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs 3 and 4 of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph 7, a retailer engaged in business in the County shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the County or participates within the County in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the County or through any representative, agent, canvasser, solicitor, subsidiary, or person in the County under the authority of the retailer. 7. "A retailer engaged in business in the County" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the County. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a County imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. E. When contracting with the State Board of Equalization pursuant to section 4.73.080 to administer the tax imposed by this ordinance, it shall be the County's intent, and any agreement shall ensure, that the combined rate limit specified in Revenue and Taxation Code section 7251.1 is not exceeded in any district within the County that has imposed a transactions and use tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code in effect on or before the effective date of this ordinance. The agreement shall include that appropriate steps are taken by the Board of Equalization to ensure that the County tax imposed by this ordinance, when aggregated with all other transactions and use taxes imposed pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code within that district, will 1) not cause the rate of the transactions and use tax within the district to exceed the combined rate limit; 2) not cause any person subject to the tax imposed by this ordinance to pay more than the legally permissible combined rate; and 3) have no impact on the revenue received by each district within the County as the result of any transactions and use tax imposed by the district on or prior to the effective date of this ordinance. (Ord. 2017-0001 § 1, 2017.) Created: 2024-08-08 11:11:49 [EST] (Supp. No. 139) Page 8 of 9 4.73.160 State Law Amendments. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. (Ord. 2017-0001 § 1, 2017.) 4.73.170 Amendment of Ordinance. Except for amendments that would increase the tax rate, impose the tax on transactions and uses not previously subject to the tax (unless the amendment occurs pursuant to Section 4.73.160), extend the tax, or be inconsistent with the purposes of this ordinance, the Board of Supervisors may amend this ordinance without submitting the amendment to the voters for approval. (Ord. 2017-0001 § 1, 2017.) 4.73.180 Enjoining Collection Forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the County, or against any officer of the State or the County, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. (Ord. 2017-0001 § 1, 2017.) 4.73.190 Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. (Ord. 2017-0001 § 1, 2017.) 4.73.200 Effective Date. This ordinance relates to the levying and collecting of the County's Transactions and Use Tax to Prevent and Combat Homelessness and shall take effect immediately upon approval by two thirds of the electorate voting in an election on this ordinance. (Ord. 2017-0001 § 1, 2017.) 4.73.201 Execution. The Chair of the Board of Supervisors is authorized to attest to the adoption of this ordinance by the voters of the County. (Ord. 2017-0001 § 1, 2017.) Created: 2024-08-08 11:11:49 [EST] (Supp. No. 139) Page 9 of 9 Affordable Housing, Homelessness Solutions & Prevention Now A L.A. County Citizens’ Initiativeproposed by the Our Future L.A. County Coalition 1 Attachment No. 6 Ballot Measure Proponents These 5 leaders formally filed the measure as ballot measure proponents: ●Elise Buik ○President & CEO, United Way of Greater L.A. ●Edgar Campos ○Executive Director, T.R.U.S.T. South LA ●Andrew Kerr ○Chief Financial Officer, Crew Inc. ●Veronica Lewis ○Executive Director, HOPICS ●Miguel Santana ○President & CEO, California Community Foundation 2 Despite Heroic Work, Homelessness Keeps Climbing ●30,000+ people are currently receiving services funded by the existing countywide tax for homeelessness & 100,000+ people have ended their homelessness over the last 5 years ●The average rent is $2,349 for a two bedroom apartment in L.A. County, which requires a wage of $45 an hour to afford ●Only 1 in 4 people who are eligible for federal rental subsidies can use them ●We do not have a dedicated countywide revenue stream for affordable housing production & preservation or technical assistance to small cities to update their land use/housing policies 3 Housing Production in L.A. County is at an All-Time Low ●Less housing is being built now than at any point in the last 80 years ●Cities are being asked to do a lot- without adequate resources to support ●And we’re losing the affordable housing we have- between 2009 and 2019 we lost nearly 200,000 units that rent for less than $1k a month in the L.A. Metro Area 4 We won’t make progress ending homelessness unless we do a better job of preventing it in the first place ●We’ve never had a coordinated, well resourced countywide strategy to produce more affordable housing, protect the affordable housing we have, and support renters at risk of homelessness ●Until Now!LACAHSA exists for this purpose. 5 A Bold, New Approach The purpose of this citizens initiative is to use goals-based accountability to fund L.A. County’s comprehensive homelessness response system as well as invest in new strategies to address street encampments, prevent homelessness and create affordable housing. This measure would terminate and replace the existing ¼ cent sales tax that currently funds the homelessness response system and expires in 2027 with a ½ cent countywide sales tax. 6 Core Citizens Initiative Ballot Measure Components Outcome Goals Focus the measure’s intent and impact.Accountability, Governance and Oversight A new approach to accountability & oversight Local Solutions Fund, Technical Assistance & Innovation Fund Shared responsibility, experimentation and implementation support for citiesRevenue Source Replace existing ¼ cent sales tax with ½ cent sales tax Revenue Allocation & Accountability A flexible allocation plan with clear guardrails 01 02 05 03 04 7 8 OUTCOME GOALS-Accountability in Action 1. Increase the number of people moving from encampments into permanent housing in order to reduce unsheltered homelessness. 2. Reduce the number of people with a mental illness and/or substance use disorder who are experiencing homelessness. 3. Increase the number of people permanently leaving homelessness. 4. Reduce the number of people falling into homelessness. 5. Increase the number of affordable housing units in L.A. County. The goals shall be determined by the Executive Committee informed by the L.A. County Leadership Table and relevant Agencies/Departments, no later than April 1, 2025. Each goal will have specific metrics as well as short, medium, and long term time bound deadlines, at minimum 5 and 10 years. Accountability, Governance and Oversight Mirroring and connecting to the ongoing implementation of L.A. County’s Blue Ribbon Commission on Homelessness. ●Needs Assessment + Regional Plan ●Real Time Evaluation & Accountability ●Transparency & Communication 9 nt + 10 A Balanced Approach Core Programs: ●Homeless Services: 50% ●Flexible: Services or Housing- 10% ○Local Solutions Fund ○Innovation Fund ●Housing Production: 24% ●Homelessness Prevention, Renter Supports: 11% ●Accountability, Data, Evaluation- 1.25% *LACAHSA’s allocation can never be reduced below 33% of total funds, and services funding may be shifted to LACAHSA in future years as the landscape changes- this will support the bonding capacity of the agency. Revenue Allocation-Assumes $1.25B 02Allocation Amount (*rounding)% Share of Total Revenue Core Homeless Services (Substance Use Treatment, Mental Health Services, Outreach, Emergency Shelter, Supportive Housing Services, Short Term Rental Assistance) ( 86.6% of services allocation)$612,000,000 Local Housing & Services Solutions Fund for Cities (15% of services allocation)$110,000,000 Innovation Fund (3.3% of services allocation)$12,000,000 Services & Emergency Housing (County & Cities) Subtotal $735,000,000 60% L.A County Development Authority Housing Production Fund $36,000,000 3% Accountability, Data & Evaluation Fund $15,000,000 1.25% LACAHSA - Production, Preservation & Affordable Ownership (minimum 40%) (assumes 61.5%)$262,000,000 LACAHSA- Renter Supports & Homelessness Prevention (minimum 30%) (assumes 30%)$131,000,000 LACAHSA- Flexible (any eligible agency use (minimum 15%) (assumes 100% allocation to Production) LACAHSA- Cities Technical Assistance (minimum 5%)$21,000,000 LACAHSA Admin & Operations (maximum 10%; assumes 5%)$21,000,000 LACAHSA (County & Cities) Subtotal $438,000,000 35.75% 11 Key Facts & Outputs Affordable Housing & Homelessness Prevention: ●$3 Billion+ for Affordable Housing Production & Preservation over the next 10 years ○Triple the current local funding investment ●$1 Bilion+ for homelessness prevention & at-risk renter supports ○Current Measure H investment in prevention is $20M in current budget- $200M over 10 years Homeless Services System ●Ensures 30,000+ people continue to receive housing and services (possible 25% in homelessness) : ●22,000 people in supportive housing continue to receive services ●8,700 emergency/interim housing beds continue operating 12 13 Allocation Analysis- Cities Cities- 36% of total annual revenue raised is earmarked for cities directly ($444M out of $1.25B) ●$110M in guaranteed annual services funding through Local Solutions Fund ○15% of services category ○4X the current Measure H Local Solutions Fund ($25M in FY23-24 budget) ●$312M in guaranteed annual housing production / renter supports funding ○5 largest cities can self administer, others through COGs ○70% of production & preservation categories allocated to cities/unincorporated/COGs by Low Income RHNA goal ○70% of renter protections & supports categories allocated to cities/unincorporated/COGs by per capita low income renter ●$21M in guaranteed annual LACAHSA funding for cities under 50k ○Technical assistance for program design, policy creation, land use updates Funding Adjustments- Accountability & Innovation ●If Outcome Goals are not achieved, that County and LACAHSA shall each move at least 2.5% of funding from existing programs to different programs that have demonstrated higher effectiveness. ●Funding to LACDA shall be contingent upon LACDA continuing to receive $100M in annual funding from the County annual budget. ●Any reduction in this annual appropriation results in a dollar for dollar reduction in the 3% allocation, with those funds instead going to LACAHSA 14 Revenue Source ½ Cent Sales Tax, replacing existing ¼ cent increment ●A net increase of ¼ cent for most cities in L.A. County ○5 cities are currently not paying Measure H would increase by ½ cent ■Compton, Lynwood, Pico Rivera, Santa Monica, South Gate ●Sales Tax does not apply to: ○Rent ○Groceries ○Medicine ○Gas ○Items purchased with EBT 15 Next Steps ●The Measure was filed on Monday, November 6 ●400,000 submittable signatures are required to achieve 260,000 valid signatures ●Signature collection began in early December and will take approx. 5 months 16 THANK YOU! 17