Mayor Eric Garcetti’s 2016 budget proposal is one step closer to becoming reality — and it’s a step that will that have an impact on the real estate industry.
City Council unanimously voted last week to back his $8.8 billion budget, which puts a greater emphasis on homelessness and housing development than it has in the past. The plan allocates $138 million for combating homelessness, although half of the money will have to come from selling and developing city property. Garcetti’s latest emphasis marks a turning point in his position on the housing crisis, as only $34 million was set aside for the issue last year.
Council members proposed one change to the Garcetti’s plan: the restoration of two Planning Department positions that the mayor had originally cut, L.A. Daily News reported. Getting rid of the two staff roles would have reduced the seven-member Neighborhood Conservation division that grants historical designations for areas with unique cultural or aesthetic elements. The mayor’s critics, including Council member Paul Koretz, argued that slashing the two positions would have allowed developers to build more “McMansions” in L.A.
Before it goes into effect on July 1, the budget will return to City Hall for one final vote. [LADN] — Cathaleen Chen