Developer Contribution Ban Goes Into Effect

A ban on political contributions from restricted developers has gone into effect as of June 8. In December 2019, the city council adopted an ordinance that limits the ability of persons involved in certain city development projects to make city campaign contributions. 

The city council specified that it should take effect with the 2022 regular general elections. See Council File No. 19-0046.www./cityclerk.lacity.org/m.clerkconnect 

The ban prohibits restricted developers from making contributions to the mayor, the city attorney, a city council member, a candidate for one of those offices, or a city committee controlled by one of those individuals. Restricted developers are the applicants, property owners and principals associated with 17 types of significant planning entitlements, which are identified in Los Angeles Municipal Code § 49.7.37(A)(5).

The developer contribution ban deals directly with the events that led to the arrest of then 14th district city council member Jose Huizar. You may recall June 2020, when Huizar was arrested on a federal racketeering charge alleging he led a criminal enterprise, using his position on the city’s Planning Commission to solicit and accept lucrative bribes and other financial benefits to enrich himself and his close associates, in exchange for Huizar taking official actions favorable to the developers and others who financed and facilitated the bribes.

United States Attorney Nick Hanna at the time said Huizar used the power of his office to approve or stall large building projects via other corrupt city officials, lobbyists, consultants and developers. Huizar’s CD14 was described as an area that experienced a commercial real estate boom in years immediately prior to 2020. Additionally, Huizar lost his position as chair of the Los Angeles Planning and Land Use Management Committee, after the FBI executed search warrants in November 2018 at Huizar’s home and his offices and seized about $129,000 cash that was stashed in his closet.

The contribution ban begins the day that an application for a significant planning entitlement is submitted to the Planning Department. It ends 12 months after the date a letter of determination is issued or, if no letter is issued, the date the decision on the application is final.

Applicants for significant planning entitlements are required to register their cases with the Ethics Commission. Registration must be done online through the Restricted Developer Filing System or RDFS, at: https://angelenologin.lacity.org/ Planning applications are not complete and cannot move forward until registration is confirmed.

Additional information is available at: https://ethics.lacity.org/developers/

For assistance, contact the Ethics Commission at ethics.rdfs@lacity.org.