Will resi get relief as Measure ULA goes under review?

Los Angeles's Measure ULA, marketed as a mansion tax to fund tenant rights and homelessness programs, is facing potential modifications due to concerns about its impact on property development. While the measure was intended to target high-value properties, it has created unintended consequences affecting single-family residential and commercial real estate. Councilmember Nithya Raman proposed amendments including a 15-year carveout for new multifamily, commercial, and mixed-use construction, plus disaster relief provisions. The L.A. City Council established an ad hoc committee led by Council President Marqueece Harris-Dawson and Councilmember Ysabel Jurado to address ULA-related issues. Commercial, industrial, and multifamily development deals have declined 30-50 percent since the tax's 2023 implementation, with particular concern about affordable housing development being discouraged.

"There are things in ULA that I frankly think were not in the spirit of voters, like taxing the building of affordable housing as one example. Harris-Dawson said. It's been all quiet on the western front since three bombshell lawsuits involving Do"

"The Harris-Dawson motion said as much, citing a drop of 30 percent to 50 percent across commercial, industrial and multifamily deals since the tax's 2023 rollout. The Eighth District representative reiterated that during Wednesday's council meeting, offering a hint of where amendments could go."

"Raman's proposal for a 15-year carveout on new multifamily, commercial and mixed-use construction, plus a one-time carveout for properties impacted by a natural disaster, was critiqued in January for lacking the typical public comment process and was kicked over to the city's Housing and Homelessness Committee."

Read at therealdeal.com