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.
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.
According to multiple assessments of Measure ULA by UCLA, UC Irvine, UC San Diego and Harvard, the results so far have found the following results in comparison to the original projections:
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. Adjusting Measure ULA’s tax can be achieved 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 embrace the facts and move forward, together.
