Anaheim’s tourism district is proposing to allocate part of its revenue to affordable housing. The City Council unanimously voted on Tuesday to start a process to amend the Anaheim Tourism and Improvement District (ATID) rules. This change would direct approximately $3 million annually into a housing trust fund, specifically to aid local hospitality workers who struggle with housing costs. The ATID, established in 2010, includes 93 hotels that collect a 2% surcharge on nightly stays to fund tourism and transportation improvements.
The proposed changes would not alter the existing surcharge but would redirect a portion of the funds to the Anaheim Local Housing Trust Fund. This fund, created in 2024, already holds $16 million, including $15 million from Walt Disney Co. The trust aims to finance affordable housing, assist first-time homebuyers, and provide rent assistance. A new committee will oversee how the funds are spent.
Councilwoman Norma Campos Kurtz noted that hoteliers initiated the discussion over two years ago, seeking ways to support their employees. The proposal comes as Anaheim faces a $60 million budget shortfall and follows recent labor strikes for better wages among hotel workers. The council plans to revisit the proposal in October, with a potential ordinance in November.
Councilwoman Natalie Meeks praised the hoteliers for their willingness to support housing, calling it groundbreaking. Councilman Ryan Balius also supported the move, emphasizing its potential impact on affordable housing.
Anaheim’s efforts to increase affordable housing have been challenging, with only a small percentage of new homes built for low-income families in recent years. The city is also considering a gate tax on major entertainment venues to boost revenue for community projects.
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