Council Deadlocks on Proposal to Place Tax on Subsidized Housing

The City Council has deadlocked on a proposal to require city-subsidized housing projects to pay property taxes.

City officials now decide on a case-by-case basis whether a housing project should be removed from property tax rolls, but there is no policy on when such action should be taken.

Five housing projects that received financial assistance from Fullerton and its redevelopment agency do not pay property taxes. They are apartment complexes that offer affordable rents for people with low incomes.

Another low-income housing project is not on the property tax rolls but paid $40,000 at the time it was approved. The money was meant to reflect the taxable income the city would have received if it were taxed, city officials said.

Three other similar projects are on tax rolls.

Mayor Chris Norby and Councilman F. Richard Jones wanted to establish a policy that would require all housing projects to pay property taxes. They received support from the Fullerton Chamber of Commerce and some residents.

Council members Don Bankhead and Jan M. Flory opposed the proposal, however. “Each project should be considered when it comes up,” Bankhead said.

Councilwoman Julie Sa was absent from the meeting.