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At last week’s city council meeting, Palo Alto council members discussed whether to pursue a revenue measure to help fund affordable housing projects in the city. Palo Alto is expected to add 6,000 units in the next eight years, with half of those being below market rate. However, funding for those below-market-rate units is significantly strained, and the city claims it lacks the resources to contribute.
One idea was a vacant housing tax that would levy a fee against homes that sit vacant for a certain period. They recommended following a similar model to Berkeley, which charges $3,000 to properties that are vacant for more than 180 days a year. Fines could be increased in subsequent years or for longer vacancy periods. Palo Alto previously discussed a similar fee program for commercial vacancies.
The conversation also included exploring other ideas, such as a bond. Palo Alto has recently passed business taxes. It is uncertain when specific ideas will be revisited by the council, and anything going before voters would likely not occur until 2026.
Source: Palo Alto Online
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