Cities Index.
2026-07-13 Finance Audit Committee Supplemental Correspondence Item 1 Part 3

Finance Committee
July 13, 2026

Document
2026-07-13 Finance Audit Committee Supplemental Correspondence Item 1 Part 3
Meeting
July 13, 2026
Body
Finance Committee
Original file
1.8 MB
Text extracted from the city's file for reading and search. Open the original on www.cityofpasadena.net. That file is the official record.

McMillan, Acquanette (Netta)
From:

Sent:

To:

Subject:
tsrutherford ' - ionnetwork.org>
Monday, July 13, 2026 9:31 AM
PublicComment-AutoResponse
Pass a new property transfer tax to fund affordable housing - agenda item 16 [ J ] CAUTION: This email was delivered from the Internet. Do not click links or open attachments unless you know the content is safe. Report phish using the Phish Alert Button (PAB). For more information about the PAB view article "KB0011474" on the DolT portal.

Council Member,
To the Mayor and Members of the Pasadena City Council,
I urge you to place a property transfer tax dedicated to affordable housing and homelessness prevention on the ballot.

Pasadena urgently needs a stable source of funding for affordable housing. The City's Housing Element already commits Pasadena to considering a transfer tax, and the staff report estimates it could generate approximately $26 million annually to support affordable housing, rental assistance, and homelessness prevention.

A progressive transfer tax can be designed to apply only to luxury home sales, ensuring that the vast majority of Pasadena homeowners and renters are not directly affected. With an average home price of about $1.2 million, setting the starting point at $2.5 or $3 million would target only high-value property transactions.

Pasadena already faced a housing crisis, and the need for affordable housing has become even greater following the Eaton Fire, which displaced many residents in Pasadena and Altadena. The best way to address homelessness is to prevent it by keeping people housed.

I encourage the Council to give Pasadena voters the opportunity to decide whether to create a dedicated local funding source for affordable housing and homelessness prevention. 07/13/2026
Item 16
^cMillan, Acquanette (Netta)
•rom:
•ent:
•o:

Subject:

Donna M Lee <[email protected]>
Monday, July 13, 2026 11:28 AM
PublicComment-AutoResponse
I support a transfer tax to fund affordable housing - agenda item 16 [ ;fe ] CAUTION: This email was delivered from the Internet. Do not click links or open attachments unless you know the content is safe. Report shish using the Phish Alert Button (PAB). For more information about the PAB view article "KB0011474" on the DolT portal.

Council Member,
Dear Mayor Gordo and Members of the Pasadena City Council, I strongly support placing a Transfer Tax on the ballot as an additional source of revenue for our city. i also urge you to dedicate those funds to affordable housing, consistent with the Housing Element that the City submitted to the State of California.

While Pasadena has made significant progress in reducing homelessness, much more remains to be done, and expanding affordable housing is one of the most direct ways to address the problem. Affordable housing is especially important for seniors living on fixed incomes. Rent control helps, but annual Social Security increases often fail to keep pace with rising rents. Today, more than 51 percent of Pasadena renter households spend over the recommended 30 percent of their income on housing. Increasing the supply of affordable housing would help relieve that burden.

Transfer taxes have been successfully adopted In other California cities and appiy only to the sale of high-value properties. They do not place an added burden on the average homeowner or on the '58 percent of Pasadena households that rent'. This is a practica! way to generate revenue while making Pasadena a more livable city for everyone.

Thank you and sincerely,
Donna Lee
Donna M Lee
PASADENA, California 91106
07/13/2026
Item 16
VIcMillan, Acquanette (Netta)
:rom:
>ent:
ro:
iubject:
humaira afzal
Monday, July 13, 2026 12:27 PM
PublicComment-AutoResponse
Item 16 - Property Transfer Tax to Fund Affordable Housing [ A ] CAUTION: This email was delivered from the Internet. Do not click links or open attachments unless you know the content is safe. Report phish using the Phish Alert Button (PAB). For more information about the PAB view article "KB0011474" on the DolT portal.

Dear Mayor and City Council Members,
addressing homelessness is one of City Council's top priorities. The best way to fight homelessness is to not let it happen in he first place. We will never effectively prevent, let alone end, homelessness without building substantially more affordable lousing.
encourage you to place a progressive property transfer tax on the ballot for November, with money raised to be allocated :o fund affordable housing and homelessness prevention. As a reminder, the city's Housing Element specifically references a property transfer tax as a potential funding source for affordable housing. Unlike most other taxes, a property transfer tax :hat applies only to high value homes would only affect very wealthy homeowners and, unlike most other taxes, not put the 3urden on residents who are already struggling to pay for housing and other basic needs.

Fhe median home price in Pasadena is about $1.2 million; a property transfer tax would raise significant funds if it kicks in at lomes selling at $2.5 million or even $3 million. In 2025 alone, over 90 homes sold for over $3 million. There are currently 3ver 30 homes on the market list for at least $3 million. Increased property transfer taxes on the sales of these luxury and jltra-luxury could raise greatly needed funds for affordable housing and homelessness prevention services in Pasadena without adding to the tax burden of all but a very small number of city residents.

Sincerely,
Humaira
:3asadena District 7 Resident
Sent with Pjotpn Mail secure email.
07/13/2026
Item 16
1070 E. Green Street, Suite 100
Pasadena, CA 91106

RECEIVED
PASADENA^? FOOTHILLS "' I___ll
REALTORS8 Wh M ^ gM I f: C^C<626)795-2455
.ui.uuui- l^ "..i igo^{[email protected]
Ci'I'11,' CLERK
.„ CITY OF PASADENA
July 13, 2026
Honorable Mayor Victor Gordo
Honorable Members of the City Council
City of Pasadena
100 North GarfieldAve.

Pasadena, CA 91101
0 a:
2 s
CL
RE: Pasadena City Council for July 13, 2026 Agenda Item No. 16 Dear Mayor Gordo and Members of the City Council:

At its regular meeting for July 13,2026, the Pasadena City Council is scheduled to consider various measures to increase revenues through various tax increases. While fiscal management is critical for the long-term success of a weLL-functioning public agency, we urge the City Council against burdensome tax increases as are under consideration by the Council.
-0
5 ?3
0 x>
0 Two tax increases identified in the Staff Report for Agenda Item 16 are of particular concern: Parcel taxes and real property transfer taxes have particularly negative effect on utilization and transaction of Local properties. They levy an unfair burden on homeowners.

Attachment C of the staff report identifies real property transfer taxes and parcel taxes in that "tax is paid by residents and commercial property owners; can establish a relationship between the tax basis and the services." This statement is incorrect, based on these factors:

Our real estate transaction data indicate that, historically, on average 2-5% of properties within any jurisdiction turn over each year. A real estate transfer tax relies on a remarkably small subset of property owners - those in the process of transfer title to the property - to carry a highly disproportionate burden for balancing the City's budget. 07/13/2026
Item 16
1070 E. Green Street, Suite 100
Pasadena, CA 91106
PASADENA^T^FOOTNILLS
REALTORS8(626)795-2455
[email protected]
Parcel taxes and transfer taxes apply to property owners and not necessarily tenants.

Under Pasadena Charter Sec. 1813, housing providers may pass through these tax liabilities as operating expenses. However, they must reapply every year for a new pass- through and thereby be annually subject to the risk of findings in a rental housing board hearing that are inconsistent with this provision. Furthermore, a limited and unreliable pass-through adds to the excessive burden of property owners having to bear disproportionate responsibility for balancing the City's budget.

Parcel taxes and transfer taxes increase the overall cost of housing while adding time and risk to an already complicated sales transaction. This is an additional de facto burden on property buyers and sellers that ultimately affects all residents - homeowners and tenants.
0 a
Q
CE
5 a-
These unsustainable tax hikes - amid ongoing concerns about the availability and affordability of homes in the community- exert undue pressure on the residential and business communities. It is these same communities where the City's revenue comes from. Any negative effects that drive businesses away or reduce the economic purchasing power of the City's residents could eliminate any benefit the City may realize from raising taxes.

T3
5 :0
Q
73 0
On behalf of Licensed real estate agents and brokers living and working in the City of Pasadena - and on behalf of the countless residents and business supported by real estate professionals-we urge the City Council not to proceed with burdensome taxes but rather look toward other measures for proper fiscal management with City resources that also supports the local community.

Sincerely,
<OrA^-
Sarah Moore
2026 President

← All documents from this meeting