LA’s Ambitious Affordable Housing Measure: What We Know, What’s Under Debate, and What Next for Measure ULA
When Westside for Everyone endorsed United to House LA (Measure ULA) in 2022, we were excited by one of the boldest ideas in the country to raise revenue for housing and homelessness prevention.
What Measure ULA does: The so-called “mansion tax” puts a one-time fee on real estate sales over $5 million, with the goal of generating hundreds of millions annually for affordable housing, rental assistance, tenant protections, and homelessness prevention. Contrary to the name, this tax affects both single family and multifamily properties as well as commercial and industrial sites.
Westside for Everyone’s support: Westside for Everyone endorsed Measure ULA and put significant effort into helping it pass - we knocked on doors, phone banked, and educated our members about why we supported it.
The issue: Two years later, ULA has now become the subject of heated debate among researchers, advocates, and policymakers. At the core of this debate is whether ULA is a model of progressive policy, or a promising but imperfect policy with consequences that may undercut its goals. Here’s our take.
Two analyses of Measure ULA by UCLA, as well as one by UC Irvine, UC San Diego and Harvard, have found the following impacts (which we have updated with the data from the city’s ULA dashboards when possible):
| Housing Production | Permitting for new multifamily housing has fallen significantly relative to other LA-area cities, with UCLA researchers calculating a reduction of at least 1,910 units per year (about 18% below pre-ULA trends). |
|---|---|
| Affordable Housing Development | Because of the overall reduction in new housing that seem to have been caused by this tax, there's an estimated net loss of at least 168 "deed-restricted" affordable units per year even after accounting for ULA's contributions to dedicated Affordable Housing projects. |
| Revenue | About $500 million has been generated in the past fiscal year--a powerful source of revenue, though short of the $600 million - $1.1 billion projected. At the same time, by significantly reducing high-value property transactions, it is also reducing other taxes collected by the state--particularly property taxes due to Prop 13. |
| Rent Relief and Tenant Protection Support | 4,300 households received emergency rental assistance totaling $30.6 million as of December 2024, and legal services were provided to nearly 16,000 tenants facing eviction. It bears mentioning that studies recommending targeted fixes to the program also called out rental assistance funds as essential and made recommendations that would preserve the large majority of ULA's funding. |
Here’s our take.
Westside for Everyone has long believed that Los Angeles needs more homes to solve our housing crisis. Measure ULA was a promising proposal for that future.
We trust the academic institutions whose multiple evaluations have shown that ULA’s design has not lived up to its promise to voters. We also appreciate the concerns of leaders of Measure ULA who are worried about losing funding if the tax is limited or changed. Tenants who are struggling right now have benefitted from services funded by ULA.
That being said, we believe that urgently needed supports in the short-term should not be put at odds with solving the housing crisis long-term.
Policy improves when evidence is debated openly and data is shared. Policy analysis has shown that Measure ULA’s tax can be adjusted to mitigate negative consequences while preserving significant revenue for affordable housing development and tenant protection. (For example, ULA could limit the fee to single-family homes, making it a true mansion tax.)
Multiple solutions are possible. Let’s face the facts and move forward, together.
Glossary of Terms
Affordable Housing
Housing that is priced to be affordable for people with low or moderate incomes, often supported by government programs or subsidies.
Housing Production / Housing Development
The process of building new housing units, including planning, permitting, and construction.
Permitting
The official approval process required by local government before construction can begin on new housing or other developments.
Deed-Restricted Affordable Units
Homes that are legally bound (by a deed) to remain affordable for a set period (often decades). This restriction prevents resale at market rates.
Rental Assistance
Financial help provided to tenants to cover rent, often during emergencies or economic hardship.
Tenant Protections
Legal measures that safeguard renters from eviction, discrimination, or unfair practices by landlords.
