The City Council Tuesday is expected to approve final guidelines for housing production and homelessness prevention programs funded by Measure ULA.
Voters approved the measure, also called United to House LA, in April 2023, establishing a tax on the sale of property of more than $5 million. Revenue collected from the tax supports the construction and preservation of affordable housing, as well as eviction defense, rental assistance, and income support for seniors and people with disabilities.
However, due to legal challenges and a recent ballot measure intended to overturn ULA, the city’s Housing Department could only use up to $150 million for limited expenditures.
The California Supreme Court ruled the Taxpayer Protection and Government Accountability Act could not appear on the November ballot, which called for a referendum on local special tax increases passed after Jan. 1, 2022. The measure would have required a two-thirds vote for tax measures to pass instead of a simple majority, as well.
“With that hurdle cleared, pending litigation remains the only potential threat to ULA,” according to a report from the Housing Department. “The litigation challenging the validity of ULA may be resolved at some point before the end of calendar year 2024.”
“In the event that the city prevails in the litigation, it will be free and clear of any potential obligation to refund ULA revenues collected to-date,” the report added.
If approved, Tuesday’s vote would mark a significant milestone in addressing homelessness, according to housing advocates. The city would be able to access more funding — a total of $480 million, as of October, according to a city report.
The Housing Department estimated it could allocate a total of $167.9 million for ULA programs during the current fiscal year, and increase the funding to $301.1 million for FY 2025-26.
Opponents of Measure ULA criticized Measure ULA, among them the Howard Jarvis Taxpayers Association and the Apartment Association of Greater Los Angeles.
The organizations backed the Taxpayer Protection and Government Accountability Act. They’ve also warned the Measure would have a chilling effect on the city’s luxury real estate market.