On a construction site for the future apartment complex known as Enlightenment Plaza, housing advocates and city officials Tuesday celebrated the second anniversary of Measure ULA, the city’s so-called “mansion tax,” for creating more affordable housing across Los Angeles.
Located at 316 N. Juanita Ave., near the Vermont/Beverly Metro Station, Enlightenment Plaza is a permanent supportive housing site that once complete will offer 117 units. It’s being developed by Flexible PSH Solutions and funded by ULA funds, as well as private financing.
“Our goal is to ensure the long-term stability and dignity of people experiencing chronic homelessness who need permanent supportive housing, and Measure ULA is critical funding that leverages conventional financing with public dollars, making the development of housing replicable and cost-effective for the direct benefit of the people whom we serve,” Dalila Sotelo, partner and Acting COO of Flexible PSH Solutions Inc. said in a statement.
According to Sotelo, ULA funds represent approximately 10% of the total financing for the first three phases of the overall project. The complex is expected to be complete by December 2026.
“The last phase is not yet fully funded but it is our hope that we can leverage ULA funds to complete the financing on that phase so we can commence by later this year,” Sotelo told City News Service.
Once it’s complete, residents can live in the complex for the duration of a signed lease agreement with an option to renew each year. Residents are expected to receive assistance with rent payments according to their income, Sotelo noted. The People Concern, a nonprofit, will provide social services and case management to residents.
“All residents must comply with the terms of their lease,” Sotelo said in an email.
Phoebe Valencia, a tenant living in the ULA-funded Santa Monica-Vermont apartments, said Measure ULA changed her life. She was homeless for six years before being placed in the building.
“My apartment is beautiful and clean. I can close my door and feel safe,” Valencia added in a statement. “I don’t have to worry about whether I’m going to have to move again in a week, or a month, or a year. I have peace of mind, and that’s given me back my life.”
In November 2022, about 58% of city voters approved Measure United to House LA, which levied a 4% tax on property sales of more than $5 million and a 5.5% tax on sales of more than $10 million.
Revenue generated by the tax supports several programs for the development of affordable housing and tenant protections such as emergency rental assistance and anti-tenant harassment measures.
As of February, ULA has raised a total of $632 million. According to the ULA Citizens Oversight Committee, a 15-member panel overseeing ULA funds and programs, it has kept 11,000 residents in their homes through rental assistance, funded the start of construction on 795 affordable homes and created thousands of jobs.
“Passing Measure ULA sent a clear message by Angelenos that we need a powerful tool to help us navigate the housing crisis,” Tiena Johnson Hall, general manager of the L.A. Housing Department, said in a statement.
“Right now, we’re building affordable homes, protecting renters, and creating good jobs. As the Citizens Oversight Committee-approved program rolls out, we’ll see Los Angeles as a true leader in creating a city that works for all of us,” she added.
Joe Donlin, director of United to House LA, which campaigned for the measure, emphasized that having a permanent funding stream for affordable housing production is “absolutely vital” as the federal government cuts funding and staff from the Department of Housing and Urban Development.
Los Angeles City Councilwoman Ysabel Jurado, a member of the Housing and Homelessness Committee, echoed Donlin’s sentiments.
“At a time when the federal government is being stripped bare and our city is facing sharp budget deficits, ULA is an indispensable force for protecting Angelenos and improving their lives,” she said.
In the first year under the measure, city officials authorized the use of up to $150 million as a result of legal challenges and a proposed ballot measure that intended to overturn ULA.
The California Supreme Court previously ruled that the Taxpayer Protection and Government Accountability Act, which called for a referendum on local special tax increases passed after Jan. 1, 2022, could not appear on the November 2024 ballot. The measure would have required a two-thirds vote for tax increases to pass instead of a simple majority.
Critics of Measure ULA, such as the Howard Jarvis Taxpayers Association and the Apartment Association of Greater Los Angeles, backed the Taxpayer Protection and Government Accountability Act. They also warned that the measure would have a chilling effect on the city’s real estate market.