As state and local races were called this past week following the June 2 primary, real estate money has fewer candidates to turn to.
For Los Angeles mayor, City Council member Nithya Raman took down reality TV star Spencer Pratt — who had notable real estate backers, including Westside Estate Agency’s Kurt Rappaport and billionaire developer Geoff Palmer — in the battle to face off with incumbent Karen Bass in November.
In the days leading up to the primary, Bass reeled in additional industry money with $200,000 coming from the State Building and Construction Trades Council of California PAC and $50,000 from the Los Angeles County Building and Construction Trades Council PAC — according to filings from the Los Angeles City Ethics Commission. Additionally, funds poured in from Kenneth Lombard, president and CEO of Bridge Housing, Pantheon Development’s Chasen Washington and Sherri Franklin, CEO of Urban Design Center.
Raman’s industry donors remain limited though she secured a couple of donations in late May including from a Keller Williams agent and Benji Power, director at Procida Development Group. Previously, Raman saw contributions from architecture and urban planning outfits and housing advocacy groups.
Bass’ lead in the primary comes as the mayor is facing blowback for a homeless initiative, which involves public agencies leasing apartment buildings and then subleasing units to residents using government subsidies. More than one-third of units meant to house the homeless were vacant across 14 master-leased properties, as of May. Despite the vacancies, the rents for those units are still being paid by the Los Angeles Homeless Services Authority, costing taxpayers $880,000 per month, according to LAist.
Still, representatives from Bass’ office threw shade at Raman’s views on homelessness when it became clear she was advancing to the runoff.
“We look forward to winning a contest against an opponent who allows encampments near schools and fights against hiring more cops,” Alex Stack, a Bass campaign spokesperson, said in a statement on June 8.
Becerra collects industry dollars
For the gubernatorial race, it seems Xavier Becerra — former U.S. Health and Human Services secretary who finished first in the primary — is gaining some traction with the real estate industry.
Becerra tallied nearly $2.8 million from the California Real Estate Independent Expenditure Committee – California Association of Realtors, according to the California Fair Political Practices Commission. He also received new donations from real estate players and companies, based on a review of campaign finance data from the California Secretary of State.
This month, between three executives at Meruelo Group, an investment firm with a number of hospitality and construction affiliates, Becerra saw $61,000 in donations. He also brought in $39,200 from Airbnb, $10,000 from Robert Birmingham of Birmingham Development, $1,000 from Patrick Murphy, chief investment officer of Coastal Construction, and $5,000 from the National Association of Hispanic Real Estate Professionals.
Former Fox News contributor Steve Hilton, who finished second in the primary, saw less real estate donation movement more recently but has scored notable backers throughout the campaign cycle. This includes Dollinger Properties’ Dave Dollinger, Lyon Living’s Frank Suryan Jr., Craig Realty’s Steven Craig and billionaire Geoff Palmer.
A pillar for this race has been candidates’ stances on California’s housing crisis. Becerra has been firm in his plan to hold local governments accountable if they fall short of state-mandated housing production markers. He also said one of his first orders of business would be declaring a state of emergency over the state’s housing shortage. Hilton’s housing priorities include capping impact fees for housing development and decreasing regulations such as new building codes.
Read more
Raman joins Bass in runoff, defeats Pratt, a real estate favorite
HUD halts funding for LA housing agency as homeless units sit one-third vacant
Will Becerra, Hilton bring real estate backers to November runoff?
Kennedy Zak
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