The Los Angeles City Council has taken a significant step toward addressing the city’s housing crisis by approving the final guidelines for Measure ULA, a ballot initiative commonly referred to as the “mansion tax.” Passed by voters in 2022, this measure established a tax on property sales exceeding $5 million in value. The guidelines, approved with a 12-0 vote, outline how revenue generated from the tax will be allocated to housing production and homelessness prevention initiatives.
What is Measure ULA?
Measure ULA, which officially took effect in April 2023, imposes additional taxes on the sale of properties valued at $5 million or more within the City of Los Angeles. The measure’s primary goal is to fund affordable housing development and homelessness prevention efforts, addressing some of the city’s most pressing challenges.
Approved Guidelines
The Council’s approval includes 11 key guidelines that detail the allocation of funds generated by Measure ULA. These guidelines focus on both creating affordable housing and preventing homelessness. Highlights include:
Affordable Housing Initiatives
- Multifamily Affordable Housing: Supporting the creation of new affordable housing units.
- Acquisition and Rehabilitation: Funding the purchase and renovation of existing properties to increase affordable housing stock.
- Alternative Models for Permanent Affordable Housing: Exploring innovative solutions to ensure long-term affordability.
- Homeownership Opportunities: Developing programs that make homeownership accessible for low- and moderate-income households.
- Operating Assistance: Providing financial support for affordable housing projects to ensure their sustainability.
Homelessness Prevention Measures
- Eviction Defense and Prevention: Offering legal assistance and other resources to prevent tenant evictions.
- Tenant Outreach and Education: Empowering tenants with knowledge about their rights and available support.
- Protections from Tenant Harassment: Safeguarding renters from unfair treatment by landlords.
- Short-Term Emergency Assistance: Providing immediate financial aid for tenants facing housing instability.
- Income Support Programs: Targeting rent-burdened seniors and persons with disabilities at risk of losing their housing.
- Capacity-Building Initiatives: Strengthening organizations working on housing and homelessness issues.