"Eighth District colleague Marqueece Harris-Dawson, who serves as president of the 15-seat council, has signed on to support the effort. Raman is proposing a ballot measure for June 2 that would create a permanent 15-year carveout for new or substantial rehabilitation of multifamily, commercial and mixed-use projects. The clock on each exemption would start at the time the certificate of occupancy is issued."
"Currently, ULA applies a 4 percent tax on transactions starting at $5.3 million and it bumps up to 5.5 percent on deals of $10.6 million or more. Voters approved Measure ULA in 2022 as a levy aimed at generating revenue to fund housing production and homelessness programs. The real estate industry has argued that the tax, which went into effect in 2023, has chilled financing for new construction and the flow of deals overall."
"Raman has been a supporter of ULA since its inception, and she is casting the proposed care-out as a bid to preserve the tax in the face of steady attempts to roll it back amid a reduced pace of multifamily development that is compounding the local housing crunch. The limited pipeline is increasingly seen as linked to ULA tamping down lending."
Nithya Raman proposed a June 2 ballot measure creating permanent 15-year exemptions to Measure ULA for new or substantially rehabilitated multifamily, commercial, and mixed-use projects, with exemptions starting at certificate of occupancy. Council President Marqueece Harris-Dawson signed on to support placing the motion before the council on Jan. 27. Measure ULA levies a two-tier real property transfer tax—4 percent on transactions at $5.3 million and 5.5 percent on transactions at $10.6 million—intended to fund housing production and homelessness programs. The real estate industry says the tax has chilled financing and slowed deal flow, and proponents argue exemptions would preserve the levy while restoring development activity.
Read at therealdeal.com
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