The approximately $425 million that Measure ULA raised will be used for a number of affordable housing and homelessness initiatives, according to a plan passed by the Los Angeles City Council on Tuesday.
Under Measure ULA, also referred to as the mansion tax, the spending plan for the fiscal year 2025, which began on Tuesday, is the largest to yet.
The real estate industry has long criticized the voter-approved legislation, which taxes property transactions over $5 million. More recently, a number of reports have found that the policy has slowed down property sales, which has decreased property tax revenue and the building of new homes.
However, supporters point out that the bill would provide vital financing for programs that prevent homelessness and provide affordable housing at a time when the county and state have reduced funding.
The ULA budget target for 2025 is more overall than any previous years put together.
The director of United to House LA, Joe Donlin, issued a statement saying, “Don’t believe the hate from big-money real estate or their lies that are appearing all over the media.” Measure ULA is working diligently to give Angelenos solid jobs and secure housing.
More than $100 million will go into programs that prevent homelessness, such as eviction defense and income support for vulnerable tenants, under the plan that was passed Tuesday.
More than $288 million, or the majority of the 2025 funding, will go toward building and maintaining affordable housing.
The city’s Housing Department claims that since voters approved Measure ULA in late 2022, the tax has brought in almost $702 million.
