DCA Nonprofit Lease Subsidies

 

A $1 per-year lease of city-owned buldings enables dozens of non-profits - many of them arts organizations - to serve the public.  The CAO has proposed the elimination of this long-held agreement, jeopardizing these organizations' ability to provide programs when our communities need them most.

We're calling on arts organizations, partners and community stakeholders to vigorously advocate to City Council for the proposal to have a full hearing in the Arts, Parks, Health & Aging Committee. 

Click here to take two minutes to send the City Council a message.  Let them know:

1. The proposal needs a full hearing in Arts, Parks, Health & Aging to discuss the ramifications of removing the nonprofit lease subsidy program.

2. This hearing should include an economic impact statement.

Once you have taken action, forward this information to your friends and networks via email, Facebook and Twitter.

 

Additional Information on NonProfit Subsidy Leases
A proposal by the CAO's office would eliminated the $1.00 per-year leases for nonprofit organizations working in the interest of the public. The propsal is currently in the Budget and Finance Committee.  Below is an excerpt from the CAO's recommendation expaining their rationale for the chance in policy.

Many non-profit organizations occupying city-owned facilities for virtually no payment to the City ($l/year). Not only is the City foregoing market rate rental income, the City, in some cases, is also paying for utilities, maintenance and security costs and is shouldering liability exposure that arises from use of such city-owned facilities. To minimize the City's existing structural budget gap, we recommend that Council adopt eligibility criteria and a subsidy policy, as proposed in Attachment I of this report. This policy will establish reasonable and appropriate financial responsibility for non-profit organizations in return for permission to occupy City-owned facilities. This policy will not only reduce the negative fiscal impact and liability exposure on the City, but will also provide consistency in determining eligibility and lease terms, while providing Councilmembers flexibility to subsidize up to 50 percent of the market rate rent. A portion of this policy also addresses the sale of property to non-profit organizations.

Full text: http://clkrep.lacity.org/onlinedocs/2008/08-2762_rpt_cao_4-16-10.pdf

This context does not address the important role these organizations play in reducing urban blight, sustaining jobs and stimulating economic activity.  It also does not address how GCS will meet the demand of serving these facilities.