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It's the number one issue that everyone is Los Angeles is talking about: Will there be a vacancy tax on the November ballot??
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OK there are many important items before city council today. I'll be following this one, which could net the city $150 million/year.
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OK there are many important items before city council today. I'll be following this one, which could net the city $150 million/year.
Discussing the vacancy tax now. @MikeBoninLA introduces it: "The market is broken and the disparity is affecting everything."
Bonin says an Oakland law is the best guide for an LA tax.
Bonin says an Oakland law is the best guide for an LA tax.
Up next is @PaulKoretzCD5: "It's quick, and it's easy, and it's logical, and it's fair to require luxury housing that's built, to go on the market. So i think this is eminently reasonable."
@mhdcd8 is succinct: "Once you build it, you've got to rent it." Asks about timeline; item would have to be approved by July 1
@JoeBuscaino is not in favor. "I hate moving forward on these types of proposals in the midnight hour ... I'm not comfortable moving forward on this."
Says he's heard concerns from commercial property owners.
Says he's heard concerns from commercial property owners.
Next is @MitchOFarrell, who begins w/ a trip down memory lane: "Once upon a time in Los Angeles ... the market would take care of vacancies." No longer. "We now have corporations and family trusts that are perfectly comfortable with leaving buildings unoccupied."
@PaulKrekorian asks about the mechanics of vacancy: Why are luxury units left empty? Says he's not satisfied with lack of explanation.
More notes of skepticism from @cmgilcedillo and @CD12LA. Cedillo says motion will fail unless it includes a carve-out for mom and pops. Lee says he opposes a new tax.
@MikeBoninLA wraps it up. Says the tax isn't perfect, but the times demand going forward. "We're living in a moment of crisis for housing, for income inequality, for the city's finances."
This did not wrap it up. We're still going 2 hours plus into the debate. @davideryu says "this is very, very important" and that the vacancy tax concept has been proven in other cities — Oakland and Vancouver are the ones councilmembers keep mentioning. DC has one too.
2+ hours in the meeting ... currently 1 hour, 20 minutes into this item
Koretz makes a motion to remove SFRs from the vacancy tax. Blumenfield says corporately owned SFRs should be removed. I wrote about corporate landlords in California a couple weeks ago https://laist.com/2020/05/28/will_corporate_landlords_gobble_up_homes_during_downturn_california_politicians_are_concerned.php
Aaaaand it passes, 13-0. Next step is for the City Attorney to draft language. Council will need to vote on item again before it makes it on your November ballot.
Vacancy tax was amended to exclude non-mixed use commercial prop, exclude non-corporately owned SFR
Vacancy tax was amended to exclude non-mixed use commercial prop, exclude non-corporately owned SFR
