Approved by Los Angeles voters in 2022, Measure United to House LA, also referred to as the “mansion tax,” is on its way to raise its first $1 billion for housing and homelessness prevention programs in the city.
Measure ULA took effect in April 2023, and placed a 4% tax on property sales above $5 million, later adjusted to $5.3 million, and a 5.5% for sales above $10 million.
With revenue expected to hit $1 billion in January, proponents of the measure say it will be the largest local housing and homelessness prevention initiative in the United States. Joe Donlin, director of United to House, says the figure is expected to be confirmed and reported by the Los Angeles Housing Department next month.
Data from the city’s Housing Department noted the initiative had raised $991,798,866 as of Dec. 17 through a total of 1,389 transactions since 2023.
“The vast majority of Angelenos are not paying the tax, but they are benefiting from the increases in affordability that these investments from ULA are making,” Donlin told City News Service in a telephone interview on Dec. 19.
Donlin said a majority of the tax is coming from large, single-family homes, as well as commercial buildings such as shopping malls and office buildings.
“Those are contributing significantly … a major milestone in raising the first billon dollars in ULA history in just about two-and-a-half years, which is incredible to think about because it’s a permanent source of funding for affordable housing and homelessness prevention that no city in the country has.”
The money from the tax is used to fund eight programs that support the following:
— Construction, rehabilitation and preservation of affordable housing.
— Preventing displacement of seniors, persons with disabilities and struggling renters through eviction defense, tenant outreach and education, short-term emergency rental assistance and protections against tenant harassment.
— Boosting the development of affordable housing for families.
— Supporting the creation of different types of affordable housing models.
— Preserving existing subsidized and naturally occurring affordable housing.
— Promoting homeownership.
— Supporting successful outcomes for resident-led housing models such as tenant engagement, leadership, management and ownership of housing.
— Operating assistance for housing projects.
In the fall, the Housing Department released a notice of funding availability, or NOFA, of $387 million for affordable housing projects. About $316 million came from Measure ULA, while the remaining $71 million came from state and federal programs. The Housing Department reported it was the largest NOFA in its history.
Nonprofits, for-profit developers, community land trusts, limited equity housing co-ops, public entities and other organizations were able to apply for funding to assist in new construction, housing preservation and operating assistance.
“ULA is really just getting started,” Donlin told CNS. “So nearly $400 million, most of which came from ULA, went out for bid to affordable housing developers across the city, and early next year, those dollars are going to start being put to work in terms of new affordable housing.”
The measure also funds Stay Housed LA, a Los Angeles County and city program that provides eviction defense and education on tenants’ rights.
“This is essential, given the federal cuts toward affordable housing programs and rental assistance, and in the context of tightening budgets at the state. Los Angeles is in a strong position to make significant gains addressing our affordability crisis thanks to ULA,” Donlin said.
Over the summer, the city approved a $425 million spending plan for Measure ULA dollars. Previously, the city approved a $150 million ULA spending plan, a much smaller amount, due to legal concerns as critics filed challenges in court.
Critics of Measure ULA have claimed the tax has slowed down commercial development and sales and actually hurt the availability of affordable housing.
“It may be at a milestone of $1 billion in revenue after nearly three years, but voters were told it would bring in up to $1 billion in revenue every year. It has fallen well short of projections due to the effect of the high tax on the number and frequency of real estate transactions,” Susan Shelley, vice president of communications for Howard Jarvis Taxpayers Association, said in a statement to CNS.
“It has undeniably suppressed new multi-family development in the city of Los Angeles and transactions of all kinds in the commercial real estate market.”
On Dec. 15, the California Courts of Appeals affirmed a prior court’s decision to uphold Measure ULA, and rejected the lawsuit filed by the Howard Jarvis Taxpayers Association. The California-based nonprofit advocates for Proposition 12 and Proposition 218, which limit property taxes and require voter approval for local taxes.
The association has argued that Measure ULA violates both the state’s constitution and the city’s charter.
The court ultimately said the California Constitution provides voters the power to enact property transfer taxes, and sustained Los Angeles County Superior Court Judge Barbara Scheper’s decision to dismiss the association’s case.
Shelley, in her statement, said the association will continue to press the appeal. She added, “HJTA’s attorneys believe the court got it wrong and didn’t address the issues we raised.”
“Proposition 13 prohibited new real estate transfer taxes above the 0.11% allowed by state law at the time, and it required a two-thirds vote of the electorate to pass local special taxes,” Shelley continued in her statement. “The court’s decision opens the door for new local real estate transfer taxes anywhere in the state to be placed on the ballot by initiatives from special interest groups, and these measures will evade the constitutional requirement for approval by two-thirds of local voters, passing with the narrowest majority.”
The association is working to qualify an initiative constitutional amendment for the November 2026 ballot that will repeal Measure ULA and other real estate transfer taxes higher than 0.11% by closing court-created loopholes in Proposition 13.
The petition for the Local Taxpayer Protection Act to Save Proposition 13 is available at SaveProp13.com.
“The people of California placed taxpayer protections in the state constitution by initiative. It is highly concerning that state courts now cut holes in those protections through strained interpretations, ignoring the plain intent of the voters,” Shelley said.
LA resident Tania Dolinger, a union electrician with IBEW Local 11, sees Measure ULA as a way to support Angelenos in need — just as she received help many years ago.
Dolinger, 56, is part of the crew constructing Enlightenment Plaza, a 247,812-square-foot apartment complex with 454 units. Of these units, 117 will be available for formerly unhoused individuals.
The project is located at 316 N. Juanita Ave., near the Vermont/Beverly Metro Station. It’s being developed by Flexible PSH Solutions, and it received some funding from Measure ULA.
“I’ve been an electrician for more than 30 years, and before that I was in the painters’ union. And then, before that, I was a single mom,” Dolinger said. “I got out of an abusive, very young marriage. I didn’t have any work experience or career or education or anything.”
Dolinger described herself as a motivated and hardworking individual. She emphasized that her work ethic coupled with the support of a women’s shelter, a job program, a housing initiative and opportunities by her union allowed her to be where she is Tuesday.
Dolinger told CNS that when she showed up to work at the Enlightenment Plaza site she experienced a full-circle moment.
“I realized that I was on an affordable housing construction site. That’s very dear to me. If it wasn’t for some kind of help with housing when I was very young, I wouldn’t have been able to be successful in my life,” Dolinger told CNS.
Phoebe Valencia, a tenant living in the ULA-funded Santa Monica-Vermont apartments built by the Little Tokyo Service Center, said Measure ULA changed her life.
Valencia said she lost her husband to gun violence in 2016, and soon after she lost her home. She lived on the streets of Los Angeles County and eventually found herself in Skid Row.
“I would have probably stayed homeless had COVID not happened,” Valencia said, noting that she was placed into temporary housing via the state’s Project Roomkey initiative.
Housing navigation was a challenging process, Valencia said.
“Then all of a sudden, I heard about these apartments that were being built,” Valencia added. “I saw from the ground up this building that I’m living in now.”
Valencia called her placement into housing a blessing. She’s been living in her new home since March. Now she gives back, and volunteers with people experiencing homelessness.
Valencia told CNS she aims to humanize the homelessness crisis.
“Sadly, they tend to forget that people who were in my position, that are homeless now, they’re human beings,” Valencia said, referring to critics of Measure ULA.
“I get it. There’s frustration with where the tax dollars are going, but at the end of the day, that could be their brother, their sister or themselves. I never in my life — never thought — I was ever going to be homeless,” Valencia added.
“I’m not ashamed of it. It’s something I survived. I made it through. I try to share with other people, especially my peers that are still out there still, so they have some sort of hope,” Valencia continued.