News Summary
Anaheim’s City Council has unanimously approved a plan to allocate around $3 million from tourism revenue to support affordable housing for hospitality workers. The proposal directs 9% of the tourism district’s revenue into the city’s housing trust fund, aimed at addressing rising living costs. A new housing committee will oversee fund allocation, focusing on the needs of hospitality workers. Concerns regarding transparency in fund handling were raised, while the initiative seeks to combat the housing crisis for workers amid ongoing discussions about housing solutions.
Anaheim’s City Council has unanimously approved a plan to allocate approximately $3 million from the tourism district’s annual revenue towards affordable housing programs tailored for hospitality workers. This initiative is designed to address the rising costs of living in the area and ensure that workers have access to housing that is within their financial reach.
The proposal directs 9% of the tourism district’s revenue, which is generated from a 2% surcharge on hotel stays, into a separate account within the city’s housing trust fund. This dedicated fund is intended to not only support first-time homebuyer programs and emergency rent assistance but also to contribute to affordable housing construction.
A newly established five-person housing committee will oversee the decisions regarding the allocation of these funds. This committee will differ from previous advisory bodies by holding final decision-making authority. Comprised of hoteliers, a representative from a small hotel, and a city representative, the committee is expected to leverage its combined experience to prioritize the needs of hospitality workers in the community.
A standout point during the council meeting was the comment from Councilmember Norma Campos Kurtz, who stressed the necessity of involving hoteliers in the decision-making process, recognizing their unique understanding of the challenges faced by employees in the hospitality sector.
Despite the overwhelming support for the measure, some council members raised concerns about how the new handling of funds might comply with state audit requirements regarding the transparency required for the public nature of tourism district funds. Anaheim’s Deputy City Manager Greg Garcia acknowledged that while tourism tax funds might not singularly finance a housing project, they could undoubtedly assist in completing ongoing projects that address the housing crisis.
This move comes on the heels of a critical report from the California State Auditor, which pointed out that there had been misuses of the tourism district’s hotel tax revenue in the past, including allocations for political lobbying. Formed in 2010, the Tourism Improvement District was intended to boost local tourism and improve transportation, encompassing a total of 93 hotels in the area.
Looking ahead, the tourism district’s revenue is projected to reach around $32 million by 2025, with the majority of funds allocated to marketing and transportation initiatives. The city plans to engage the community by scheduling public meetings to gather input and opinions regarding these changes. A formal public hearing is set for November 18, 2025, to discuss the proposed allocation of funds.
If the proposal is approved, the initial distribution of funds aimed at workforce housing solutions could commence in February 2026. This initiative has been prompted by increasing concerns about hospitality workers struggling to afford living in Anaheim, particularly highlighted by strikes that called for higher wages in 2023.
Additionally, council members are considering the inclusion of new timeshare developments in the tourism district while ensuring that current residential zones, including mobile home parks, remain unaffected by these changes. Local advocates are emphasizing the importance of targeting funding specifically toward low-income resort workers and have underscored the necessity for accountability and transparency in the management of the allocated funds.
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Additional Resources
- LAist: Anaheim Hotel Workers Vote on Affordable Housing
- Wikipedia: Anaheim
- OC Register: Anaheim Hotels and Tourism Funding
- Google Search: Anaheim affordable housing
- Travel and Tour World: Tourism Taxes for Housing
- Google Scholar: Anaheim housing programs
- Fox LA: Anaheim Disney Donation for Housing
- Encyclopedia Britannica: Housing
- Disney Experiences: Disneyland Community Benefits
- Google News: affordable housing Anaheim
Author: Anaheim Staff Writer
Anaheim Staff Writer The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
