Measure ULA, the so-called mansion tax, was meant to infuse L.A.’s homeless service system with much needed funds. But one year after the controversial rule went into effect, did it deliver?
No. At least not as many had hoped.
The transfer tax, approved by voters in 2022, put a 4 percent charge on all property sales above $5 million and a 5.5 percent charge on sales above $10 million for all homes sold within the city of Los Angeles. During the campaign process in 2022, proponents of the measure boasted that the tax could bring in some $900 million in funds put directly toward affordable housing and homelessness initiatives.
One year after the tax went into effect, ULA has brought in $215 million, according to the L.A. Housing Department. City officials expect that number to raise to around $300 million by the end of the city’s fiscal year on June 30.
But more than the money (or lack-of) raised, the tax all but froze the luxury and ultra-lux market in L.A.
According to the L.A. Times, sales of single-family home sales of $5 million or more dropped 68 percent in the 12 months since ULA began on April 1, 2023.
Last Fall, the L.A. City Council approved the first installment of ULA funds. Some $150 million was allocated across six programs, including $23 million for eviction defense, $23 million toward income support for seniors and $18.4 million toward rent debt assistance.
So, what are your thoughts on ULA now that the local market is one year in? Drop us a line at hello@californialistings.com and let us know what you think today!