What Could go Wrong in Building Tiny Houses for Homeless?

Tent of homeless person on 6th Street Bridge with Los Angeles skyline in the background. California, USA. (Photo By: Education Images/UIG via Getty Images)

The Los Angeles County Board of Supervisors just voted to go forward with a pilot program to house homeless people in tiny houses in the backyards of single-family homes. And if you pay taxes in L.A. County, you’re going to pay for it.

The program will pay $75,000 to homeowners who agree to have a tiny house constructed on their property, or $50,000 to upgrade an illegal dwelling unit, like a converted garage. The selected homeless person or family will pay rent, covered by low-income vouchers. Tenants would contribute 30 percent of their incomes. Taxpayers, presumably, would make up the difference.

If you ever drove by a homeless encampment and said to yourself, “The government ought to do something,” you probably never thought that what it would do is move the residents of the encampment into a backyard next door to your own house, at your expense.

But that might very well happen.

L.A. County is testing this concept in a pilot program that will cost $550,000.

Here’s how it will work for homeowners: The county will provide a maximum subsidy of $75,000 to build two or three new “accessory dwelling units” or ADUs, sometimes called granny flats. The subsidy will be provided in the form of a loan that will be gradually forgiven, with the principal reduced for every year that the unit is used as homeless housing. After 10 years, the loan will be completely forgiven and the homeowners can evict the homeless tenants and do whatever they wish with the units.

What could possibly go wrong?

Well, for starters, the many families currently living in bootleg housing could find themselves evicted so the owners can take advantage of $50,000 in government loans to legalize the units so they can house somebody else.

That means that this program, if it’s ever scaled up, could vastly increase the homeless population almost overnight.

Something else that could go terribly wrong is the “magnet effect.” That’s when people in other counties and states see the backyard tiny-house option as a great opportunity and move to L.A. County to take advantage of it. That could increase the homeless population even more. Then there’s the obvious problem.

Here’s how Supervisor Sheila Kuehl described the homeless population: “Many, many of them are just regular people like you and me who just lost their job or lost their house and really don’t have other choices.”

That may be, but many, many of them are not regular people. Many, many of them are people with issues that will make them terrible tenants and horrible neighbors.

Suppose the people who are chosen by the county to live in the homeless housing choose to abuse drugs, damage property or become a nuisance to the neighbors or the neighborhood. What’s the plan?

That was probably one of the questions that stalled a plan for backyard homeless housing in Multnomah County, Oregon, where Portland is located. The pilot project was set to build four tiny homes last year, but was delayed by a cluster of concerns over locations, legalities and tax consequences.

It turned out that Portland’s strict rules about how close a house can be to a tree meant that there were fewer available locations than expected.

Then there was difficulty working out legal agreements between the homeowner and the homeless tenants, between the tenants and the property manager and between the property manager and the county.

There was also the question of how to compensate homeowners for the trouble. The county initially planned to make pre-fab tiny houses available for free, but that would have triggered unpleasant tax consequences. So they worked out a plan to sell the houses to the homeowners and offer financing similar to what’s being proposed here. And Oregon property owners can have their $75,000 loan forgiven in just five years, not 10.

The city of Los Angeles is spending a $100,000 grant from Bloomberg Philanthropies to study the feasibility of backyard homeless housing within the city’s boundaries. Maybe this will solve the problem of homelessness in a way that will inspire the world. Or maybe it will be the start of a wave of gated communities with HOA agreements that don’t even allow adding a birdhouse without a two-thirds vote of the board.

olumnist and member of the editorial board of the Southern California News Group, and the author of the book, “How Trump Won.”

Homeless may get mobile showers at Los Angeles Metro stations

sanfranciscohomelessAs the homeless population continues to grow in Los Angeles, the agency that operates public transportation in the county is considering putting showers in or near some of its train stations in an effort to promote hygiene.

Metro’s Board of Directors unanimously approved a motion on Thursday following a four-month study to examine a pilot hygiene and mobile shower program, which would also examine incorporating public restrooms at all new rail stations on the system.

“I hope that when we look at this, it’s a first start, it’s about a humanitarian issue in my opinion because we do have a very diverse population that uses our rail and bus services and our hubs,” Metro Director and Los Angeles County Supervisor Hilda Solis told board members.

Solis, who spearheaded the study for the pilot program, said the program would be collaborated with the Los Angeles County’s Office of Homeless Initiative, Department of Public Health, Department of Public Works, and other relevant departments. The pilot program, if adopted, would first roll out at the Westlake/MacArthur Park and North Hollywood stations. …

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When do We Finally Say ‘No’ to Tolerating the Damage and Chaos of Homelessness?

What’s the best way for a free country to make decisions about how to spend tax money?

One way to do it is to hold elections to choose public officials who will make decisions on behalf of the people who elected them, then hold a fully public process to create budgets and appropriate the money that taxpayers are required to hand over.

Another way to do it is to find the people in society who are totally unable to manage their own lives and put them in charge of public spending.

That’s how we do it in California.

Our government at all levels has accepted the argument that the moment people self-identify as having “nowhere else to go,” they acquire a civil right to pitch a tent and live on public property ansanfranciscohomelessywhere, including streets, sidewalks, plazas, parks, stormwater channels and freeway embankments.

Then it’s your responsibility as a taxpayer to pay whatever it costs to mitigate the damage and clean up the chaos.

The cost is rapidly becoming incalculable, from the $17 million needed by the L.A. Bureau of Sanitation for homeless encampment cleanups, to the staggering damage from wildfires caused by cooking in the midst of dry brush, to the catastrophic toll of a hepatitis A epidemic that took 20 lives in San Diego and put hundreds of people in the hospital.

Taxpayers in Orange County are paying for month-long motel vouchers for hundreds of people as the price of reclaiming the intended public use of the Santa Ana River trail. It’s not clear what will be different in a month, but that was the deal reached in the courtroom of U.S. District Judge David O. Carter. He was involved because attorneys for seven homeless people filed a federal lawsuit alleging that their civil rights were violated by the eviction from the huge encampment.

Judge Carter personally walked the river trail with county and city officials to see the problem first-hand, and he acknowledged that the offer of shelter would be rejected by many. “Some who want to wander will wander,” he said.

Justice William O. Douglas said something similar in 1972, when the U.S. Supreme Court threw out a vagrancy law in Jacksonville, Florida. This was the text of Jacksonville’s ordinance:

“Rogues and vagabonds, or dissolute persons who go about begging, common gamblers, persons who use juggling or unlawful games or plays, common drunkards, common night walkers, thieves, pilferers or pickpockets, traders in stolen property, lewd, wanton and lascivious persons, keepers of gambling places, common railers and brawlers, persons wandering or strolling around from place to place without any lawful purpose or object, habitual loafers, disorderly persons, persons neglecting all lawful business and habitually spending their time by frequenting houses of ill fame, gaming houses, or places where alcoholic beverages are sold or served, persons able to work but habitually living upon the earnings of their wives or minor children shall be deemed vagrants and, upon conviction in the Municipal Court shall be punished as provided for Class D offenses [90 days imprisonment, a $500 fine, or both].”

The law was “unconstitutionally vague,” Douglas wrote for the court in Papachristou v. City Of Jacksonville, criminalizing activities that “by modern standards are normally innocent.”

The justice defended night walking. He wrote that in his personal experience, “sleepless people often walk at night, perhaps hopeful that sleep-inducing relaxation will result.”

Douglas also cited poets as authority to throw out Jacksonville’s ordinance. “Persons ‘wandering or strolling’ from place to place have been extolled by Walt Whitman and Vachel Lindsay,” Douglas wrote, “They are embedded in Walt Whitman’s writings, especially in his ‘Song of the Open Road.’ They are reflected, too, in the spirit of Vachel Lindsay’s ‘I Want to Go Wandering.’”

And that’s federal law now, if you’re wondering how we got where we are today.

No matter how much money we choose to spend on services or housing — and the tax increases are stacking up — the public has no right to demand that people get off the streets. We’ll pay for the services and housing and still have to pay for the damage and the chaos.

Eventually some city or county official will have the courage to reject a settlement in one of these lawsuits, and he or she will fight all the way to the Supreme Court in defense of the public’s right to preserve public spaces for their intended use.

By then, five of the justices may recognize that Walt Whitman didn’t write “Song of the Open Sewer.”

This article was originally published by Fox and Hounds Daily

olumnist and member of the editorial board of the Southern California News Group, and the author of the book, “How Trump Won.”

Los Angeles Homeless Solutions Needed Now

homelessDecember marked a milestone in Los Angeles’ homelessness efforts when City and civic leaders gathered to break ground on the first Proposition HHH housing project for the homeless.  Approved in November 2016 by more than 76 percent of Angelenos, HHH authorized $1.2 billion over 10 years to construct 10,000 units of permanent supportive housing in the City of L.A.

In March 2017, voters again showed their urgency for solutions by approving Measure H, a county-wide quarter cent sales tax to bring in more than $300 million over 10 years for wrap-around supportive services for the homeless.  The last count by the Los Angeles Homeless Services Authority (LAHSA), showed that homeless residents in the city exceed 34,000, and the county total exceeds 57,000.

It is now clear that finding funding for our homeless crisis may have been the easy part. We don’t just need money. We need policy changes, political will and neighborhood support.

To deliver on the promise of Proposition HHH to build 10,000 units of housing for the homeless in the City of L.A., advocates of HHH have proposed a Permanent Supportive Housing (PSH) Ordinance to remove unnecessary barriers and red tape in the approval process. The ordinance ensures that projects fit within the surrounding community and follow existing zoning requirements. By amending planning regulations to speed up the process and address the specific needs of PSH units (such as requiring fewer parking spots), this ordinance can save up to a million dollars on each project and enable more housing units to be built throughout the community.

Another less expensive and faster solution to house homeless individuals is the Interim Motel Conversion Ordinance, which would aid in the transition of motel rooms into temporary or permanent homes. According to a report by the Planning Department, there are approximately 10,259 guest rooms in 382 motels that could be eligible for conversion if the owners are interested in the program.

Both of these proposals passed the City Planning Commission in December. They were heard in the City’s Homeless & Housing Committee a couple weeks ago, where Councilmembers requested report backs on a number of technical issues and emphasized the need for geographic equity. We urge members of the City Council to move forward on both of these policies, and to actively support specific projects in their individual districts.

The 2018 Greater Los Angeles Homeless Count took place last week and we expect the total count to go up. It is no longer acceptable for any of us to say, “I support projects to house the homeless, just not THIS project in my neighborhood or community.” The only way to dramatically impact our homelessness crisis is for every neighborhood in the City of L.A. and every community in the County of L.A. to be part of the solution.

resident & CEO of the Los Angeles Area Chamber of Commerce.

This article was originally published by Fox and Hounds Daily

Homeless Dreamers: DACA, Less than Half of It

Maria Ortiz, at left, a Mexican immigrant has been living in the United States for 23 years. "I am single. I work so hard to stay. I never needed support from the government," Ortiz said. She is not a citizen and works as a janitor, she said during an immigration protest outside Rep. Ed Royce's office in Brea. ///ADDITIONAL INFORMATION: – MINDY SCHAUER, ORANGE COUNTY REGISTER – Shot 111713 – immig.fast.11.19 Advocates for immigration reform will camp our near the office of Rep. Ed Royce for five days, where they will stage a fast. They are asking OC's Republican leaders in Congress to publicly support an overhaul to the nation's immigration laws, including the so-called pathway to citizenship that would create a process for some 11 million people living in the U.S. illegally the right to become citizens.

Poor DACA Dreamers trapped in America without a home to go to through no fault of their own. Google counts 64,000,000 million hits. That’s quite a bit of concern expressed for the “turmoil and fear” caused by Trumps threat to end  Obama’s executive amnesty program of Deferred Action for Childhood Arrival, DACA. That’s a whole bunch of media driven stories to “save the children” some aged 37. The Right talks about anchor babies, the Left, “dreamers.” No surprise Congress and even President Trump are now so sympathetic to the  plight of youngsters (some of whom undoubtedly arrived with puppies). The American Dream is a long reach for the dreamers.

Perhaps a caterwauling Congress will take care of them. Democrats in the Senate threaten at shutting down the government believing the Republicans will as usual get the blame. Whatever the merits, there will likely be a law to replace the Obama executive order claiming to merely delay their departure. Now departure seems out of the question.

But wait a minute there are Americans, may we for a minute call them indigenous, native Americans. They were born in the USA, certainly after Columbus. They are documented, birth certified, social security enumerated, Americans also seeking, you guessed it, the American dream. Through little fault of their own they are trapped in their parents basements, guest rooms and garages. They are the homeless poor, the millennium and adulthood denied poor. Many with college degrees work jobs whose incomes do not afford them to pay rent let alone own their own homes. From birth through 34, there are over 75 million of such folks according to the 2010 census. That’s surely a lot of dreams denied. About 75 times the number of DACA Dreamers facing denial of a newly discovered entitlement.

We know where very many of these dreamers live — California which state leads the nation at the top and at the bottom in housing prices, also homeless ness, poverty, food stamps, welfare, Medicare, utility bills, gasoline prices, bike paths, HOV lanes, bicycling, hiking, surfing, endangered species, teacher salaries, remedial education, public employee salaries and pensions, public sector unions, foreign languages, sanctuary cities, and oh yes, not so coincidentally, government spending, taxes, and regulations.

Yes, some American Dreamers have high paying jobs in Silicon Valley, but live in trailer parks, in their cars or commute 3-5 hours a day to the off-the-coast counties because of housing shortages and high prices. This California dystopia, wishing it was Venezuela, or perhaps Zimbabwe, has driven some of the dreamer parents into poverty and into lower costing and lower taxing states.

Indigenous American dreamers of all colors, ethnicities and genders, are in dire straits through no fault of their own. Elitist NIMBY, environmental and labor regulations have driven several generations of Californians into a no to slow growth economy of stagnant wages and diminishing opportunities. Manufacturing and small businesses disappear, evaporate daily.

California is the future of America. No longer golden, it heavily regulates gold mining and imports sand and gravel as well as immigrants. Welcome to the Golden State where the war on liberty and capitalism extends into the future where a new nation, CALEXIT, may be aborning, where national socialism, very far from God, is envisioned just around the corner.

For the DACAs, either get in line or go to California … Oh, you are already there? Stop whining. You get whatever you ask for in the sanctuary state. Who needs Congress or Trump when you have the California Legislature and Governor Moonbeam 2.0 saving the children as well as the climate of the planet?

Meanwhile among the forgotten middle of America, shutting down the government for the sake of amnesty and a hollow military just may not go down so well.  What if the Democrats get rightful credit for shutting down the government for illegal aliens at the expense of both American dreamers and national security.  One might even look forward to the midterm elections?

Dr. Roger Canfield’s work on California issues, including immigration, goes back to being a Republican nominee for Congress, work in the California legislature, writing a daily column “Under the dome,” supporting Proposition 187 and supporting minuteman assistance to the Border Patrol. A number of California topics can be found at his http:/americong.com 

Solutions to Homeless Problem Should Not Target Homeowners

sanfranciscohomelessAs the search for solutions to the homeless problem continues, current property owners and the equity they have in their homes are often cited as targets for funding homelessness relief. What is ignored with these proposed remedies is that homeowners are counting on the equity in their homes to help with retirement or other needs.

Steve Lopez’s Los Angeles Times weekend article took issue with the wealth built up in homes partially because of limited housing stock while renters face difficult options.

While Lopez cited obstacles to housing reforms, he quoted two professors who suggested ways to find funding for homeless housing. One proposal was a “a tiered transfer tax on equity” promoted by Carol Galante of U.C. Berkeley’s Terner Center for Innovative Housing.

Lopez also spoke with UCLA professor Michael Manville who thinks it is okay to tax property because the increased value of the property has nothing to do with the efforts of the homeowner.

Manville, along with colleagues, wrote an opinion piece for the Los Angeles Times last July urging a $3 a day tax on property owners to build a homelessness fund. That $3 a day amounts to $1095 a year, a sizeable chunk of change for many homeowners who can find good uses for that money including maintaining or improving their homes.

Whether the increased property value comes from a wise investment decision or just dumb luck as Lopez writes, the value belongs to the homeowner. While the homeowner lives in the home, the increased property values are merely paper profits. Increased property value does not necessarily reflect an owner’s ability to pay increased taxes. When the increased property value is claimed it can be the lifeline to a comfortable retirement or for other needs.

While the legislature went down this path recently of charging property owners to help the homeless by creating fees for housing related documents, cutting into potential retirement funds with large annual or transfer taxes is a bad idea.

What’s disturbing is that those who enjoy government provided retirement pensions often suggest these proposals that can undermine a homeowner’s potential retirement fund.

Editor and Co-Publisher of Fox and Hounds Daily.

Oakland Mayor Urges Residents to Take in Homeless

During her annual State of the City address on Thursday, Oakland Mayor Libby Schaaf called on her constituents to open their doors and residences to the city’s homeless, as union workers picketed against her for her administration’s handling of the city’s rampant housing problem.

“Give up that Airbnb. Fix up that back unit,” Schaff said, encouraging property owners to lease apartments at more affordable rates to recently homeless individuals, according tothe San Francisco Chronicle.

“In Oakland, we don’t step over the homeless we step toward them,” Schaaf said.

The city’s uptick in vagrants is tied to a general gentrification in the Bay Area, stemming from San Francisco, where artists and innovators unable to afford skyrocketing rents have migrated to Oakland.

In May, the Chronicle noted that a survey by Everyone Counts found that the number of homeless persons in Oakland had increased by 25 percent since two years ago.

Outside Schaaf’s Thursday event and planned festivities, hundreds of Service Employees International Union (SEIU )Local 102 union workers — ranging from librarians to street cleaners to city employees — reportedly picketed against the mayor. According to the Chronicle, their stated aim was to draw attention to “the real state of Oakland,” as opposed to the one Schaaf presented on Thursday.

All eight City Council members reportedly said they chose not to attend to because of the demonstration.
Despite their protests, the Chronicle noted that Schaaf said she had great respect for the protesters who were “expressing Oakland values” and speaking “truth to power.”

Schaaf also took the opportunity to rail against President Donald Trump, specifically choosing to hold her event at the Islamic Cultural Center. She did so, she reportedly said, to send “one clear message. And that is that Oakland welcome and honor all people, all families, and all communities.”

Adelle Nazarian is a politics and national security reporter for Breitbart News. Follow her on Facebook and Twitter.

This article was originally published by Breitbart.com/California

California’s soaring poverty rates tied to its fiscal irresponsibility

homelessThe U.S. Census Bureau’s latest statistics, released this month, find that California’s poverty rate remains the highest in the nation, despite dipping ever so slightly. The reason is no surprise: It’s tied largely to the state’s unusually high cost of living.

Yet despite Democratic lawmakers’ oft-stated concern about rising income inequality, they spent the recently concluded legislative session imposing taxes, fees and new regulations that will drive up the costs of everything from transportation to housing.

In other words, they’ve been creating the poverty and inequality problem they say they’re here to solve. The burden of their failure falls most heavily on those Californians who earn the least. The new government programs they will fund with the additional tax revenue will benefit only a small number of poor people and very often at the expense of other poor people.

Under the official federal poverty measure, California’s percentage of residents living below the poverty threshold is 14.5 percent, which is nearly a percentage point above the national average. But using the bureau’s more relevant “Supplemental Poverty Measure,” which accounts for public assistance payments and the state’s sky-high housing costs, California’s poverty rate is a shocking 20.4 percent, well above the national average of 13. 9 percent.

California increasingly is becoming a state of haves and have-nots. The homeownership rates hover around 54 percent, lower than every state except New York. The cost of groceries, transportation and utilities are well above the national average, with California’s health-care costs being the only major cost-of-living area that’s around the national average.

To make matters worse, California’s troubled financial situation – mainly the unfunded debts the state has accumulated to pay for pension and medical care promises made to government employees – imposes an additional burden on taxpayers. That means higher taxes and an eroded quality of public services, as local governments struggle to balance their budgets.

The state’s distressing finances have achieved for us a kind of fame. A new study from “Truth in Accounting” ranked California near the bottom – 43rd in the nation – for its fiscal state of affairs. The group gave California a financial grade of F because of its “staggering debt burden of $255.1 billion.” That leaves “an unbelievable $21,600 for every California taxpayer,” compared to an average debt of $9,900 per taxpayer nationwide, the group reported.

The Truth in Accounting report only looks at state liabilities. California Policy Center, for instance, found that California’s total state and local debt may be closer to $1.3 trillion, which puts the total per-taxpayer burden above $100,000.

Obviously, state officials are not about to send a $21,600 bill to every taxpayer. As Truth in Accounting explains, state officials use a variety of accounting tricks to hide the size of the debt: They inflate revenue assumptions in the pension funds (the higher the expected rate of return on investments, the lower the stated pension debt). They count borrowed money as income. They understate the true cost of government. They delay payments of bills to the next fiscal year, to mask the size of the current debt.

The “Financial State of the States” report found it even more troubling that “state government officials continue to obscure large amounts of retirement debt on their balance sheets, despite new rules to increase financial transparency.” And while California has reported much of its pension debt, “the state continues to hide most of its retiree health care debt,” with a total hidden debt of $65.9 billion.

But as unfunded liabilities mount, officials will have to find ways to pay for the growing debt. “Gov. Brown needs to come up with this money through increased taxes, or slash promised benefits to teachers, police officers, firefighters, and other public servants,” according to the group. In California, the courts have greatly limited public employee pension funds’ ability to reduce benefits, even going forward. That means Californians can expect the usual response: pressure for new taxes and fees at every level of government and cutbacks in promised services.

These debt levels aren’t inevitable. Nine states have surpluses as high as $38,200 per taxpayer, after all of their debts are paid. Several others have a relatively modest amount of debt per capita. But California and eight other states are financial sinkholes.

California is known for its progressive tax rates, meaning that the wealthiest people here pay the bulk of the state’s income taxes. Gov. Jerry Brown often warns during his budget presentations that the state’s reliance on capital gains tax receipts makes the general fund vulnerable to recession. If the economy dips, revenues fall precipitously, thus leading to large deficits. He cautions the Legislature against approving permanent spending programs that can’t be sustained if the economy goes south.

Despite such progressivism, the poorest Californians are not off the hook. The governor this year signed a large increase in the gasoline tax, averaging 12 cents a gallon. He also signed an extension of the state’s cap-and-trade system, which imposes new costs on manufacturers and refiners to force them to reduce their carbon emissions. The program’s extension is predicted to add as much as 63 cents on a gallon of gasoline by 2021, according to the well-respected Legislative Analyst’s Office.

These are “regressive” taxes that fall heavily on the poor.

California also has high sales and use taxes. The standard sales-tax rate is 7.25 percent. Many cities have local add-ons that increase those taxes to as much as 10.25 percent on most purchases, which is among the highest in the nation. These, too, are regressive taxes that boost the cost of living for everyone, but harm the poor most because they eat up a larger proportional share of their budgets.

Fiscal problems also hit poor people the hardest. Some of the state’s poorest cities (Stockton, Vallejo, Richmond and San Bernardino) have struggled under burdensome pension debts. When Stockton went bankrupt, for instance, local officials responded by increasing sales taxes as part of their “work-out plan.” High-paid public employees had their full salaries and pensions protected, while low-wage residents had to pay more in sales taxes.

But the biggest poverty problem involves housing costs. Even the state Legislature has recognized the degree to which soaring housing costs have become a statewide “crisis.” Yet the housing package that passed in the waning hours of the legislative session is likely to exacerbate the “cost of living” problem.

One measure (Senate Bill 2) increases fees on many real-estate transactions. Another will put a $3 billion housing bond on the November 2018 ballot. If voters approve, Senate Bill 3 will create new pressure on the state budget. The one measure (Senate Bill 35) that seeks to streamline the approval process for housing projects also includes a union-backed prevailing-wage requirement that could add significantly to the cost of building these projects. What one hand giveth, the other taketh away.

So, California legislators continue to drive up the cost of housing and transportation, which are the main drivers of the state’s depressingly high rates of poverty and income inequality. They ignore the bone-crushing debt levels that create constant pressure for higher taxes and that obliterate the public services upon which the poorest residents are most dependent. These actions speak far louder than their constant blather about helping the poor.

Steven Greenhut is contributing editor for the California Policy Center. He is Western region director for the R Street Institute. Write to him at sgreenhut@rstreet.org.

This article was originally published by the California Policy Center

Los Angeles approves plan to pay homeowners to house homeless

As reported by the L.A. Daily News:

A pilot program that pays some Los Angeles County homeowners to build a second dwelling on their property to house homeless people was approved with a 4-0 vote Tuesday by the Board of Supervisors.

Homeowners in unincorporated communities who qualify can receive up to $75,000 to build a second dwelling in areas zoned for such structures, while others may get $50,000 to update and legalize an existing dwelling.

The program was introduced last year as part of Los Angeles County’s set of 47 strategies to solve homelessness. The office of Regional Planning will work with several departments countywide with an allocated $550,000 in part to be used to offer subsidies.

Unlike a guest house, second dwellings include kitchens. …

Click here to read the full article

Why some cities won’t be paying Los Angeles’ new homeless tax

800px-Helping_the_homelessLos Angeles County’s sky-high sales tax will rise not once, but twice, this year.

In recent elections, Angelinos voted two new tax hikes upon themselves — one to fund transportation (Measure M) and the other to fight homelessness (Measure H).

As a result, the county’s 8.75 percent tax rate jumped to 9.25 percent on July 1. It’ll rise even further — to 9.5 percent — on October 1.

Of course, some cities in Los Angeles County have even higher tax rates. Seven of them — Compton, La Mirada, Long Beach, Lynwood, Pico Rivera, Santa Monica and South Gate — have rates of 10.25 percent that are among the highest in California, if not the entire nation.

Here’s where it gets interesting: Rather than increase their tax rates another quarter cent on October 1 like the rest of the county, those seven normally tax-loving cities will get a free pass — at least for now — in funding the fight against homelessness.

The seven cities will, of course, benefit from the estimated $355 million in annual tax payments the measure will raise but they will do so only by the courtesy of taxpayers in other cities. It’s a subsidy, plain and simple.

Why was Measure H drafted this way?

It appears to have been a rather clumsy attempt to dodge a state law capping local sales taxes. The law requires localities to limit voter-approved “district” sales taxes to 2 percent (on top of the state rate of 7.25 percent) unless they obtain specific legislative authorization.

Los Angeles County has received legislative approval twice in the past to increase this limit for transportation-related taxes. For some unknown reason, Measure H proponents didn’t want to bother with this step.

But the poor planning came back to bite them. Proponents claimed the new tax would take effect July 1, at the same time as Measure M. That would have been a lot simpler for everyone, including business owners who must now go through the trouble of reprogramming their registers twice to adapt to the rate increases.

Since the Measure H language was both unprecedented and legally questionable, the Board of Equalization rightly refused to collect the tax until the Legislature specifically voted to authorize it.

These delays have pushed back the start date of Measure H, resulting in lost funding for the fight against homelessness, and more confusion and headaches for taxpayers.

Even more troubling is the dangerous precedent this sets statewide. Will other local governments soon craft tax proposals that exempt politically-favored constituencies?

We believe the cap on local sales taxes exists to protect taxpayers and should be respected. Not every good cause merits a tax increase.

Governments are hungry for more taxpayer revenue, and seem increasingly impatient to add more and more taxes. They are also becoming more creative at disguising their efforts, and using public dollars to pay for them. The Fair Political Practices Commission, for example, is conducting an investigation into whether the county of Los Angeles illegally spent taxpayer dollars for political advocacy in its campaign for Measure H.

Before asking voters to approve more and more taxes, shouldn’t local governments identify and eliminate ineffective taxes that haven’t accomplished their promised goals?

If taxpayers are concerned about how local governments spend their money, then that question is certainly worth asking. If not, how else do we ensure taxpayers receive value for the dollars they are already paying?

George Runner is vice chair of the California State Board of Equalization. Jon Coupal is president of the Howard Jarvis Taxpayers Association.

This article was originally published by the Orange County Register