The Los Angeles City Council has granted approval to the guidelines and expenditure plan for the Measure ULA “mansion tax.” The plan aims to fund tenant protections and increase affordable housing. Mayor Karen Bass’ proposed funding plan, which includes an increase in the funds earmarked for tenant protection measures, was approved with a 10-0 vote. Mayor Bass emphasized the critical timing of this approval, as many tenants across the city are currently facing eviction.
Notably, Council members Marqueece Harris-Dawson, Monica Rodriguez, and Imelda Padilla were absent during the vote. Additionally, Council members Paul Krekorian and Curren Price recused themselves due to a potential conflict of interest.
Tenant protections for back-rent accrued during the coronavirus pandemic, from March 2020 to September 2021, expired on August 1st. This expiration puts many Angelenos at risk of eviction as they struggle to pay overdue rent. The funding plan will cater to individuals who need assistance in paying back rent that has accrued from October 2021 to January 31st, 2024.
Mayor Bass stressed the importance of preventing homelessness and expressed gratitude to Council member Nithya Raman and the rest of the City Council for their action. She emphasized the need to ensure that the allocated resources reach those who need them the most.
Before the vote took place, Council member Raman, the chair of the Housing and Homelessness Committee, urged her colleagues to approve the expenditure plan. She highlighted the urgency of the situation with over 44,000 Angelenos without a permanent home and increasing eviction rates. Raman thanked United to House L.A. Coalition, the L.A. Housing Department, and the leadership of Bass, Council members Bob Blumenfield, and Eunisses Hernandez for their support in approving the expenditure plan.
Measure ULA, known as the “mansion tax,” imposes a 4% sales tax on properties exceeding $5 million and a 5.5% tax on properties exceeding $10 million. The revenue generated from this tax is specifically allocated to renter protections, including safeguards for low-income seniors at risk of homelessness, rental assistance programs, and the construction of more affordable housing units.
Now that the council has approved the plan, the Housing Department plans to implement a short-term emergency assistance program in mid-September, aiming to prevent as many potential evictions as possible. In October, an online portal will be introduced to aid small-scale landlords.
Council President Paul Krekorian expressed his satisfaction with the approved plan and highlighted the assistance it would provide to rent-burdened families, seniors, and the expedited construction of affordable multifamily housing on city-owned land. He affirmed that the plan is fulfilling the promises made to Angelenos when Measure ULA was voted in.
Council member Blumenfield, the chair of the Budget, Finance, and Innovation Committee, emphasized the need for immediate action to support L.A.’s most vulnerable. He observed that the city has received approximately $55 million in tax revenue thus far, falling short of the expected revenue from the tax.
The Valley Industry & Commerce Association issued a statement expressing opposition to the council’s proposal, specifically citing concerns about its impact on the economic vitality of the San Fernando Valley and greater Los Angeles area.
Blumenfield assured his colleagues that the funds would be drawn from the city’s general fund but clarified that the city would be reimbursed with money owed by the federal government.
Council member Hernandez stressed that the voters’ overwhelming support for Measure ULA demonstrated the desire to fund permanent supportive housing, programs and resources for at-risk tenants, and the construction of affordable housing to address the housing and homelessness crisis in the city.
The Measure ULA expenditure plan includes various allocations: $18.4 million for a short-term emergency assistance program, $23 million for eviction defense/prevention, $5.5 million for tenant outreach and education, $11.2 million for protections against tenant harassment, $23 million for rental subsidies and move-in assistance for seniors and people with disabilities, and $56.8 million for the development of multifamily affordable housing projects under the “Accelerator Plus” initiative.
With this approval, Los Angeles is taking significant steps to ensure the protection and support of its tenants while addressing the pressing issue of affordable housing in the city.
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