Los Angeles City Council on Friday passed a resolution to support an assembly bill that creates a tax on large business owners and uses the proceeds for rent assistance, legal services to prevent evictions, services for homeless people and more.
âCurrently, 500,000 properties in California are owned by corporations and over 250,000 properties are owned by entities that own 10 other properties,â said the resolution, presented by City Councilor Monica Rodriguez. “A growing body of research suggests that owners of large businesses are more likely to acquire available housing, raise rents, evict tenants, and operate rental housing with livability issues, for example. compared to small family owners. “
California Assembly Bill 1199 would impose an annual excise tax on homeowners who own 10 or more single-family properties or 25 or more single-family and multi-family properties in an attempt to “discourage the consolidation and commodification of single-family homes, in order to create opportunities for families to buy houses and build wealth and finance essential services. “
Tax revenues would be paid into the Family Homes Fund and used for:
- rent assistance and relief for tenants;
- legal services to prevent evictions, harassment and violations of the law by landlords;
- services and programs for homeless people;
- the preservation and production of affordable housing;
- housing advisory services to promote home ownership;
- vocational training apprenticeship programs; and
- support for homeowners who own less than 10 properties and have lost rental income due to COVID-19.
The bill would also require the registration of all corporations, limited liability companies, limited partnerships, trusts and similar entities that own property in California that has been leased or leased in the previous calendar year.
The information would be compiled into a searchable database for public access.
âAs many of us saw during the economic downturn in the last bubble, we saw a lot of transfer of private property through the acquisition of business owners. And many residents, tenants have lost their homes. ‘Access to more affordable housing more importantly creates a huge transfer of wealth, “Martinez told council members ahead of the vote.
“This is our opportunity to make sure that we have more transparency in the ownership of these properties because we cannot continue to have this level of wealth transfer.”
The resolution was adopted with 14 yes votes and one absent vote.