The Los Angeles city council will place a $1 billion bond measure on the ballot November 7th, 2006. If passed the monies from the sale of the bonds will be used to issue loans and grants for the development of affordable housing and grants to first time home buyers. Real estate taxes are expected to increase by about $14 per 100,000 of accessed value if the measure passes.

Affordable housing is a critical need in Los Angeles County. It is unlikely that the development and sale of these homes and the grants to homeowners would have any material affect on price of housing overall in Los Angeles County or Los Angeles City, in the short term. In the longer term it may enable families to become moved up buyers. Also, homeowners tend to have a vested interest in keeping their neighborhoods safe and clean. (If they don't the value of their home decreases). Business also follow homeowners as the number of homes near business affect the viability of many business.

The measure does have the support of the business community, as this article from the Los Angeles Chamber of Commerce and this article about the Los Angeles Business Council shows. Although, not all are convinced, as shown by a July 30, 2006 LA times article by Joseph Mailander and comments in LAVoice.org.

The larger question of whether government can effective do what the private market place has not done remains to be seen.