--- [ ARCHIVE ](https://mail.citywatchla.com/index.php?option=com_content&view=category&id=16) # LA Passing Up Ten$ of Million$ for Infrastructure and Affordable Housing ![](https://mail.citywatchla.com/images/stories/Nov-2015/090j.png)GUEST ANALYSIS, CONTROLLER’S REPORT--Los Angeles has got a lot of [expensive infrastructure issues](http://la.curbed.com/archives/2014/08/seven_scary_facts_about_los_angeless_aging_infrastructure.php) that need attention and money, like the dangerous sidewalks and lumpy roads and aging water pipes. But a [new audit](http://controller.lacity.org/stellent/groups/electedofficials/@ctr_contributor/documents/contributor_web_content/lacityp_031921.pdf%20) from the LA City Controller's office shows that the city is "failing to exercise its power" to charge developer impact fees that could be helping pay to fix things, says a release from the controller's office. California law lets cities charge developers fees that can go toward all kinds of public use, including "fire and police protection, traffic mitigation, and the construction of libraries, parks, public art, child care facilities, and affordable housing." In the 2013-2014 fiscal year, LA had $5.3 billion in permitted construction, but collected only $5 million in impact fees. Portland, OR, by comparison, had just $1.5 billion in permitted construction but managed to collect $31 million in the same period. In [a letter](http://controller.lacity.org/stellent/groups/electedofficials/@ctr_contributor/documents/contributor_web_content/lacityp_031921.pdf%20) to Mayor Eric Garcetti and city officials introducing the audit, the controller says that LA's method of collecting and spending the fees has so far been "haphazard" and that "no central entity has been responsible for monitoring the fees." The amount of money collected by other cities suggested to auditors that LA could be missing out on anywhere "between **$15 million to $91 million a year**" by not uniformly charging the fees. When LA does charge developers, auditors discovered that the city is just sitting on the cash in some cases. For their report, auditors looked at a three-year time frame that ended with the 2013-2014 fiscal year. They found 17 funds that had been set up to receive these fees from developers. The total balance for all the funds at the end of the three-year period was $68 million; of that, they found $54 million "sitting in eight special funds whose balances had grown or remained stable over three years," meaning it just wasn't being used. The auditors are also concerned that not spending the money could put some of the funds in a position where they may have to be refunded. It's a shame that LA's sleeping on collecting these fees from residential, commercial, and industrial developers, because they can be used toward all kinds of projects that benefit the public, like infrastructure improvements and even affordable housing. (The mayor suggested creating new affordable housing [with developer fees](http://la.curbed.com/archives/2015/10/los_angeles_hoping_to_use_its_building_boom_to_fund_more_affordable_housing.php) just a few weeks ago.) The controller's report recommended that a developmental impact fee program be created so that fees can be charged fairly and reliably, and also that one department should take on the responsibility of making sure those funds are used in a timely manner. *(Bianca Barragan is associate editor at* [CurbedLA.com](http://CurbedLA.com)*, where this perspective was first posted.)* *-cw* CityWatch Vol 13 Issue 90 Pub: Nov 6, 2015 {module \[1177\]} Written by Bianca Barragan. November 05 2015 [](https://www.addtoany.com/share) ![](https://mail.citywatchla.com/images/stories/Nov-2015/090j.png)GUEST ANALYSIS, CONTROLLER’S REPORT--Los Angeles has got a lot of [expensive infrastructure issues](http://la.curbed.com/archives/2014/08/seven_scary_facts_about_los_angeless_aging_infrastructure.php) that need attention and money, like the dangerous sidewalks and lumpy roads and aging water pipes. But a [new audit](http://controller.lacity.org/stellent/groups/electedofficials/@ctr_contributor/documents/contributor_web_content/lacityp_031921.pdf%20) from the LA City Controller's office shows that the city is "failing to exercise its power" to charge developer impact fees that could be helping pay to fix things, says a release from the controller's office. California law lets cities charge developers fees that can go toward all kinds of public use, including "fire and police protection, traffic mitigation, and the construction of libraries, parks, public art, child care facilities, and affordable housing." In the 2013-2014 fiscal year, LA had $5.3 billion in permitted construction, but collected only $5 million in impact fees. Portland, OR, by comparison, had just $1.5 billion in permitted construction but managed to collect $31 million in the same period. In [a letter](http://controller.lacity.org/stellent/groups/electedofficials/@ctr_contributor/documents/contributor_web_content/lacityp_031921.pdf%20) to Mayor Eric Garcetti and city officials introducing the audit, the controller says that LA's method of collecting and spending the fees has so far been "haphazard" and that "no central entity has been responsible for monitoring the fees." The amount of money collected by other cities suggested to auditors that LA could be missing out on anywhere "between **$15 million to $91 million a year**" by not uniformly charging the fees. When LA does charge developers, auditors discovered that the city is just sitting on the cash in some cases. For their report, auditors looked at a three-year time frame that ended with the 2013-2014 fiscal year. They found 17 funds that had been set up to receive these fees from developers. The total balance for all the funds at the end of the three-year period was $68 million; of that, they found $54 million "sitting in eight special funds whose balances had grown or remained stable over three years," meaning it just wasn't being used. The auditors are also concerned that not spending the money could put some of the funds in a position where they may have to be refunded. It's a shame that LA's sleeping on collecting these fees from residential, commercial, and industrial developers, because they can be used toward all kinds of projects that benefit the public, like infrastructure improvements and even affordable housing. (The mayor suggested creating new affordable housing [with developer fees](http://la.curbed.com/archives/2015/10/los_angeles_hoping_to_use_its_building_boom_to_fund_more_affordable_housing.php) just a few weeks ago.) The controller's report recommended that a developmental impact fee program be created so that fees can be charged fairly and reliably, and also that one department should take on the responsibility of making sure those funds are used in a timely manner. *(Bianca Barragan is associate editor at* [CurbedLA.com](http://CurbedLA.com)*, where this perspective was first posted.)* *-cw* CityWatch Vol 13 Issue 90 Pub: Nov 6, 2015 {module \[1177\]} [![](https://mail.citywatchla.com/images/ME%20DENTAL%20SPA/me%20dental%202026%20final.jpg)](http://medentalspa.com/) ![](https://mail.citywatchla.com/images/banners/signup-for-cw.png) ## Get The News In Your Email Inbox Mondays & Thursdays Email [ ![LA DWP #2 (Pay Your Bill Help)](https://mail.citywatchla.com/images/LADWP/dwp%20level%20pay%205-7-25.jpg) ](https://mail.citywatchla.com/component/banners/click/82 "LA DWP #2 (Pay Your Bill Help)") [ ![Home - HHR Rent is too High - SB-2](https://mail.citywatchla.com/images/HHR/AHF-rent-too-high.jpg) ](https://mail.citywatchla.com/component/banners/click/104 "Home - HHR Rent is too High - SB-2") --- ## Featured CityWatch Stories [ ![](https://mail.citywatchla.com/media/yootheme/cache/fd/064h-fdb0b507.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=29355:remembering-ken-draper-citywatch-and-transparency-are-his-legacy&catid=12) ### [Remembering Ken Draper: CityWatch and Transparency Are his Legacy](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=29355:remembering-ken-draper-citywatch-and-transparency-are-his-legacy&catid=12) LA WATCHDOG - Ken Draper, the editor and publisher of CityWatch for more than 20 years, passed away on August 8, 2022… [ ![](https://mail.citywatchla.com/media/yootheme/cache/0f/061a-0f1ada2f.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33148:brace-yourself-for-a-worse-housing-crisis&catid=398) ### [Brace Yourself For A Worse Housing Crisis](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33148:brace-yourself-for-a-worse-housing-crisis&catid=398) PLANNING WATCH - The California State Legislature will soon vote on the following draft legislation. Please carefully… [ ![](https://mail.citywatchla.com/media/yootheme/cache/54/064j-54f0ecbd.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33204:be-prepared-to-protect-our-democracy-in-november-from-a-trumpian-plot&catid=9) ### [Be Prepared to Protect Our Democracy in November From a Trumpian Plot](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33204:be-prepared-to-protect-our-democracy-in-november-from-a-trumpian-plot&catid=9) BE AWARE - Back in the days when conservatives were so hungry for media platforms that they’d come on progressive shows… [ ![](https://mail.citywatchla.com/media/yootheme/cache/ab/063e-ab3b1ba1.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33174:nithya-raman-loses-the-homelessness-gavel-her-record-explains-why&catid=396) ### [Nithya Raman Loses the Homelessness Gavel — Her Record Explains Why](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33174:nithya-raman-loses-the-homelessness-gavel-her-record-explains-why&catid=396) THE BOTTOM LINE - Raman wants Los Angeles voters to promote her to mayor. Before handing her the keys to City Hall, v… [ ![](https://mail.citywatchla.com/media/yootheme/cache/75/064a-75d5dbb3.jpg) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33199:your-boss-owns-your-workday-not-your-brain&catid=425) ### [Your Boss Owns Your Workday—Not Your Brain](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=33199:your-boss-owns-your-workday-not-your-brain&catid=425) THE NEURAL WORKPLACE - California must protect workers before workplace surveillance crosses the final frontier: the hu… --- ## [ ARCHIVE ](https://mail.citywatchla.com/index.php?option=com_content&view=category&id=16) [ ![](https://mail.citywatchla.com/images/stories/Apr-2018/034e.png) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=15339:early-intervention-and-jobs-are-key-to-stemming-chronic-homelessness-in-los-angeles&catid=16)### [Early Intervention and Jobs are Key to Stemming Chronic Homelessness in Los Angeles](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=15339:early-intervention-and-jobs-are-key-to-stemming-chronic-homelessness-in-los-angeles&catid=16) ### [Tucker Carlson and Gay Rightwinger Blame California Wildfires On Hiring LGBTQ People](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=18755:tucker-carlson-and-gay-rightwinger-blame-california-wildfires-on-hiring-lgbtq-people&catid=16) ### [Anti-LGBTQ Veep Just Can’t Stop Talking about Mayor Pete](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=17690:anti-lgbtq-veep-just-can-t-stop-talking-about-mayor-pete&catid=16) [ ![](https://mail.citywatchla.com/images/stories/Apr-2018/033j.png) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=15316:news-pulse-corrupt-system-reason-for-not-voting-in-2018-majority-wants-more-than-two-parties&catid=16)### [NEWS PULSE: ‘Corrupt System’ Reason for Not Voting in 2018 … Majority Wants More Than Two Parties](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=15316:news-pulse-corrupt-system-reason-for-not-voting-in-2018-majority-wants-more-than-two-parties&catid=16) [ ![](https://mail.citywatchla.com/images/stories/Jan-2016/1404d.png) ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=10245:dead-dog-set-on-fire-sparks-fears-for-strays-in-los-angeles&catid=16)### [Dead Dog Set on Fire … Sparks Fears for Strays in Los Angeles](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=10245:dead-dog-set-on-fire-sparks-fears-for-strays-in-los-angeles&catid=16)