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Executive Summary

The Long Beach Civic Value Loop is a multi-phased economic and civic initiative designed to halt the significant outflow of municipal and rental revenue from Long Beach, instead re-anchoring this wealth to foster local ownership, enhance public safety relations, and directly address the housing crisis. By strategically rebalancing fiscal contributions from passive business interests and channeling the resulting revenue into targeted housing subsidies, we incentivize critical city personnel to become permanent, invested stakeholders. Furthermore, the plan culminates in an innovative public works program that creates dignified, skilled employment for our unhoused population, enabling them to construct the very housing that stabilizes our city workforce and improves quality of life for all residents.

I. Core Problem: Economic Extraction and Civic Disconnect

Long Beach currently operates under an extractive economic model that actively exports local wealth.

Salary Outflow: Approximately 80% of our Police Force and 60% of non-sworn municipal personnel reside outside of Long Beach. Hundreds of millions of dollars in salaries are spent elsewhere, paying property taxes and supporting businesses in other municipalities.
Passive Revenue Drain: A majority of the city's property tax revenue is derived from property owners (landlords and investment firms) who do not reside in Long Beach. The rental income they derive is largely spent and reinvested outside of our jurisdiction, contributing nothing to the local civic fabric or economy.
Civic Disconnect: Non-resident personnel and property owners lack the vested interest of a permanent stakeholder, contributing to a generalized disconnect between the governance, enforcement, and financial ownership of the city.

II. Phase 1: Fiscal Rebalancing and Revenue Generation

This phase focuses on creating the dedicated revenue stream necessary to fund the incentive programs.

2.1. Fair Share Contribution Policy

The City of Long Beach will establish a tiered fiscal policy targeting non-resident property owners of rental and commercial properties.

Non-Resident Rental Properties

Definition: Owners of 3+ rental units who do not claim Long Beach as their primary residence.

Policy Proposal: Implementation of a Progressive Supplemental Municipal Fee (PSMF) applied to the property tax base, increasing with the number of units owned and distance of owner residency.

Outcome: Generates dedicated, annual, multi-million dollar revenue stream for housing incentives.

Non-Resident Commercial Interests

Definition: Corporations or trusts owning local commercial property whose principals reside outside of a 50-mile radius.

Policy Proposal: Application of a Commercial Impact Assessment Fee (CIAF) earmarked for public infrastructure and works related to employee housing development.

Outcome: Secures funding for the physical construction phase.

2.2. Dedicated Fund Creation

All revenue generated from the PSMF and CIAF will be channeled into the Long Beach Local Investment and Housing Fund (LBLIHF), restricted solely for the purposes outlined in Phase 2 and Phase 3.

III. Phase 2: Employee Localization and Civic Stabilization

The LBLIHF will be used to incentivize key municipal employees to establish permanent residency and homeownership within Long Beach.

3.1. Targeted Housing Incentives

Incentives will be prioritized for uniformed services (Police, Fire) and other critical non-sworn personnel.

Down Payment Assistance (DPA): The LBLIHF will offer generous, forgivable DPA grants (up to 15% of purchase price, capped at $100,000) to qualifying city employees purchasing their first home within Long Beach limits.
Mortgage Interest Rate Buy-Downs: Partnerships will be established with local financial institutions to offer reduced interest rates for employees using the DPA program, further reducing monthly housing costs.
Lease-to-Own Subsidies: For properties developed in Phase 3, favorable lease-to-own agreements will be offered to city staff, allowing them to build equity without immediate home-buying risk.

3.2. Public Safety Reallocation Strategy

As housing incentives increase local residency among police officers, the relationship between law enforcement and the community is expected to improve, leading to fewer incidents and a reduced need for reactive policing.

Budget Stabilization: Over a 3-5 year period, the city will assess the resulting stabilization and efficiency gains in public safety.
Salary Transition Plan: A portion of the resulting efficiency savings from stabilized public safety salaries will be strategically reallocated toward the new Public Works construction team created in Phase 3, ensuring no officer is "defunded" but rather, their salary is transitioned to a local construction payroll.

IV. Phase 3: Homegrown Housing and Employment Opportunity

This phase executes the physical building of housing while tackling homelessness through employment.

4.1. Creation of the Municipal Construction Division (MCD)

The City will establish a new, lean, and innovative Municipal Construction Division within the Public Works Department.

MCD Mandate: The MCD's primary, initial mandate is the acquisition of property and the rapid development of mixed-use, multi-family housing specifically designed for city staff and affordable-rate renters.
Funding: The MCD will be funded through transitioned Public Safety salaries (for labor costs) and the CIAF revenue (for materials and equipment costs).

4.2. Employment for the Unhoused

The MCD will operate under a specific hiring directive to address homelessness:

Targeted Hiring: A minimum of 30% of all MCD labor positions (apprentices, laborers, and trades assistants) must be sourced from unhoused or underhoused individuals with verifiable backgrounds or aptitudes in construction or related trades.
Training and Certification: The MCD will partner with local vocational programs to provide on-the-job training and certification, ensuring long-term employability beyond city projects.
Integrated Housing Incentive: MCD employees, particularly those transitioning from homelessness, will be highly incentivized to move into the units they help construct, offering immediate, stable housing as part of their employment benefits package.

4.3. Final Recirculation

Once construction projects are completed, the associated MCD salaries will be reallocated again to create new City positions focused on the maintenance and property management of the newly constructed municipal housing, ensuring ongoing local employment and long-term property quality.

V. Conclusion: Building an Equitable Future

The Long Beach Civic Value Loop transforms external wealth extraction into a powerful engine for internal civic health. It not only solves the economic leakage problem but culminates in a direct, dignified, and sustainable solution to the housing and homelessness crisis. By empowering the unhoused with jobs to build the homes that stabilize our essential workforce, Long Beach turns its biggest challenges into its greatest achievements.