BALLOT TITLE AND SUMMARY
PREPARED BY THE CITY ATTORNEY
AN INITIATIVE MEASURE TO ESTABLISH ADDED FUNDING FOR HOMELESSNESS
PREVENTION, AFFORDABLE HOUSING, AND SCHOOLS BY AMENDING SANTA MONICA MUNICIPAL CODE CHAPTER 6.96 TO PROVIDE A THIRD TIER TRANSFER TAX RATE FOR PROPERTY TRANSFERS OF $8,000,000 OR MORE WITH AN ELEVENMEMBER RESIDENT OVERSIGHT COMMITTEE Santa Monica Municipal Code Chapter 6.96 sets the City’s real estate transfer tax. Currently, there are two tax rates. The First Tier Tax Rate ($3.00 per $1000 of value transferred) applies to transfers under $5,000,000. The Second Tier Tax Rate ($6.00 per $1000 of value transferred) applies to transfers of $5,000,000 or more. This measure would amend Santa Monica Municipal Code Chapter 6.96 to establish a new Third Tier Tax Rate for transfers of $8,000,000 or more.
The proposed Third Tier Tax Rate would be $56.00 per $1000 of value transferred.
This measure would add Chapter 4.90 to the Santa Monica Municipal Code to establish: (1) a Homelessness Prevention and Affordable Housing Fund; and (2) a new School Fund. These funds would be funded by the Third Tier Tax Rate. Out of the Third Tier Tax rate of 5.6%, 5% would be allocated to the School Fund and the Homelessness Prevention and Affordable Housing Fund (“Allocated Funds”) and the remaining .6% would go to the General Fund.
The measure contains a specific annual distribution of the Allocated Funds. The first $10,000,000 of Allocated Funds must be deposited into the School Fund. The next $40,000,000 of Allocated Funds collected each year must be deposited into the Homelessness Prevention and Affordable Housing Fund. Any Allocated Funds collected above $50,000,000 each year would be deposited 20% into the School Fund and 80% into the Homelessness Prevention and Affordable Housing Fund.
The measure would require the City to provide the Santa Monica Malibu Unified School District the Allocated Funds in the School Fund each year. In the event of a unification of Malibu schools, the school district serving residents of Santa Monica would be entitled to receive the School Funds. Any school district that is located outside of Santa Monica would not be entitled to any of the School Funds.
The measure allows the Homelessness Prevention and Affordable Housing Fund to be used to provide ongoing or emergency income assistance, acquire and rehabilitate existing rental properties as deed-restricted affordable housing, create new deed-restricted housing, and fund programs and services designed to preserve and improve affordable housing for lower income households.
The measure would establish an eleven-member Resident Oversight Committee to provide recommendations to the City Council regarding guidelines for eligible expenditures, local priorities and preferences, award procedures, budgeting, program evaluation, and public reporting procedures. The City’s auditors will audit the Homelessness Prevention and Affordable Housing Fund annually and publicly provide the results to the Resident Oversight Committee and the Audit Subcommittee.
The School Fund and the Homelessness Prevention and Affordable Housing Fund are intended to provide additional support and not replace any existing funding under current agreements or prior advisory measures.