"Measure ULA continued to rankle industry pros with agents saying it impacted deals across the board and multifamily developers talking about pivoting away from new construction in the City of Los Angeles. The math ain't mathing, said LaTerra Development's Chris Tourtellotte on developing new apartment buildings in the City of Los Angeles, at The Real Deal's inaugural L.A. roundtable event in September."
"Local and state politicians tried to find ways to amend the so-called mansion tax, which since April 2023 has imposed a 4 percent tax on property sales above $5 million and 5.5 percent on transactions totaling more than $10 million. Bass asked the L.A. City Council to roll it back temporarily for Palisades victims, which led to a Los Angeles City Council committee voting in November to explore that."
"State politicians sought and failed to cut tax rates for some newly built multifamily and commercial properties. It's continuing to be challenging and they really need to fix it because it's the crux of the issues today when we're selling anything residential, even commercial, it comes up and it really has probably stopped 50 percent of the deals, maybe even more, Aaron Kirman, CEO of Christie's International Re"
A wave of wildfires in early 2025 devastated the Pacific Palisades and Altadena, slowing rebuilding and delaying the first Palisades occupancy until late November. Mayor Karen Bass faced criticism for traveling to Africa before the windstorm and for alleged mishandling of recovery. Billionaire Rick Caruso and other entities aided recovery; Caruso protected his Palisades retail center with private firefighters and founded Steadfast L.A. Measure ULA depressed transactions and prompted multifamily developers to reconsider Los Angeles projects. Politicians sought changes to the mansion tax and other incentives; local rollback proposals and state attempts to cut rates for new multifamily and commercial properties largely failed.
Read at therealdeal.com
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