RES 19-1078 - Laserfiche WebLink

Attachment 1 Resolution No.19-1078 SUMMARY OF CASA ELEMENT CONCERNS AND CONSIDERATIONS RECOMMENDED APPROACH TVC POLICY FRAMEWORK KEY THEMES 9. Funding and Financing the CASA Compact Raise CONCERN STATUS: High. Though not included in the Oppose unless amended to eliminate any reduction in FUNDING AND RESOURCES $1.5 billion new revenue annually from broad Compact,the Governor has already suggested withholding SB1 'current property tax or transportation funding to cities range of sources including(but not limited to) funds from cities that do not meet their RHNA assignment. and amended as follows: property taxes,1/4-cent sales tax,head tax,and Most cities do not meet the RHNA assignment for at least low • Defined return-to-source funding formula at a city , General Obligation Bonds(reissued every 5 and very low units,mostly because such affordability requires ears Of the total$1.5 billion,$300 million level. years). significant local subsidies to even get built-the private market would come from local communities(former RDA simply won't build these units on its own. set aside and future tax increment). • Regional"fair share"housing assignment(RHNA CONCERNS process)is correlated to level of funding received New revenue allocation formula: • No"return to source"formula at the city-level,resulting in a (i.e.,the less regional funding a city receives,the - Up to 10"/for local jurisdiction incentives greater perception of some communities being"donor lower the regional housing assignment)(e.g.,we - Remainder to tenant protection,preservation, communities"without having resources to meet its assigned do not want to be donor cities). housing subsidies housing obligation. New revenue distribution formula: Support for the following funding sources: • Vacant property tax could be punitive to small property - 75%to county of origin("return to source") owners,particularly if vacancy is beyond their control. ; - 25%to regional program("revenue sharing") Potential unfunded mandate if responsibility for • Statewide voter-approved sales tax or General j enforcement falls upon local cities. Obligation bonds for affordable housing to pay for Revenue collection and disbursement would be housing initiative. managed by a new regional housing authority (described in Element 10). • Commercial fees/taxes maybe counterproductive if it drives employers out of the region and suppresses business retention. Objective:Fund elements of the Compact that l 1 requires public subsidy(e.g.,rental assistance,free • The property tax"set aside"is punitive to those cities whose legal counsel,financial incentives,etc.). tax base is largely from property taxes. • Wide range of new taxes and fees may limit a city's taxing capacity(limit its voters'appetite to pass local funding measures). Page 8