President Pasadena-Foothills REALTORS® President Says Senate Bill 679’s Affordable Housing Solutions Agency Is Not The Answer

California’s housing problems should not be placed solely on the backs of working Angelenos living in Pasadena and Los Angeles. Senator Kamlager’s SB 679 not only does that but will put homeownership out of reach for many of our local working families. Homeowners and tenants already struggle to afford housing, food and other necessities. Increasing property taxes to fund subsidized corporately owned housing development or the conversion of market rate ownership housing to corporate ownership fails to take into account the struggles families face in our area. As Angelenos we have all felt the impact and effects of today’s economic struggles and continued uncertainly in the wake of rising costs as a result of the recent pandemic.

If SB 679 is enacted, we would create yet another duplicative local housing board to propose new taxes in addition to the taxes we currently pay. The measure would grant unchecked tax and bond authority, to a 21 member “governing board” to raise revenue for affordable housing. That board could authorize local ballot initiatives to impose a parcel tax, and or issue bonds to fund affordable housing preservation using gross tax receipts, business license taxes or a document transfer tax.

SB 679 DOES NOT guarantee that affordable subsidized housing will be built. The agency funds developer purchase offers which will also compete with our states working families who are seeking opportunities to create housing stability and long-term equity opportunities. Local governments already maintain the authority to raise taxes as well as build and promote housing. Current and future homeowners should not be taxed to subsidize corporate and non-profit housing developments. As SB 679 fails to include appropriate oversight mechanisms, and seeks to create yet another layer of costly bureaucracy that will be harmful to those seeking to realize the dream of homeownership.

We can all agree that Los Angeles has a housing supply problem. Communities across LA County suffer from the consequences of high real estate and business taxes and fees which continue to disincentivize investment in housing development throughout the region.

We cannot buy our way out of the housing supply crisis. SB 679 will only serve to make homeownership impossible for our state’s working families. Any policy seeking to fund subsidized housing must be applied broadly and should not come with the potential consequence of taxing people out of their homes.

Sarah Moore, 2022 President, Pasadena-Foothills REALTORS®