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This
measure would amend the City Charter to eliminate a restriction on the use
of Tenant Ownership Rights Charter Amendment (TORCA) tax revenues so that
all of those revenues not expended on administrative costs could be used
for low income housing. At
present, restrictions limit
the portion of the revenues that can be used for that purpose. The
TORCA tax is collected on each apartment converted to a condominium.
The tax is equal to twelve times the Maximum Allowable Rent for the
unit at the time the tax is paid, which is either when the subdivision map
is approved or when the unit is sold.
Originally, TORCA tax revenues could only be used to help
households in converted units purchase or improve their units, with
revenue expenditures to be equally divided between low and moderate income
households.. As originally
restricted, the TORCA tax revenues were underutilized; and, over the
years, the voters amended the
City Charter twice to expand the allowable use of the revenues.
At
present, half of the TORCA tax revenues can be used to assist the City or
a nonprofit housing development corporation to purchase, acquire,
rehabilitate, construct, finance or subsidize low income housing.
The other half of the TORCA tax revenues must be used for the
purchase, rehabilitation, or lease of converted units.
The number of tenants seeking City loans to purchase converted
units has dwindled. Therefore, as presently restricted the TORCA revenues remain
underutilized. The
proposed measure would eliminate the present restrictions on the use of
TORCA revenues, allowing all of the revenues to be used for low and
moderate income housing. However,
the revenues could still be used for the purchase, improvement or lease of
converted units. The
proposed amendment would also eliminate the requirement that the tax
proceeds designated for funding TORCA conversions must be equally divided
between low and moderate income households. PREPARED
BY: Marsha
Jones Moutrie WORD COUNT: 329
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