The Los Angeles City Council on Tuesday voted to approve an ambitious set of program guidelines for spending hundreds of millions of dollars collected under the city’s Measure ULA tax, also known as the ‘mansion tax.’
The tax on the sale of multi-million dollar properties has collected about $480 million since it was implemented in April 2023, according to a city database. Its future was clouded by litigation and a proposed ballot measure but the courts have, so far, allowed the tax to stand and struck the proposed initiative from the ballot.
The guidelines outline how the money will be spent — including to create and preserve affordable housing through a new ‘social housing’ model, rental assistance, income support for seniors and eviction defense.
The council voted 12-0 to approve the guidelines, which were developed by a citizens oversight committee, with help from the housing department.
Approving the guidelines allows the housing department to start soliciting proposals for affordable housing, develop the infrastructure for social housing and launch other Measure ULA programs.
Social housing projects require tenants to play a meaningful role in how their buildings are run, encourage tenant ownership and include agreements that keep buildings permanently affordable.
The city on Tuesday also approved a plan to allocate $168 million of the tax money for the 2024-2025 fiscal year. The bulk of the money, about $133 million, will be spent to help build, rehabilitate and preserve affordable housing. About $21 million will go toward programs to help support renters — like income support for rent-burdened seniors and people with disabilities and eviction defense. Another $13 million will be allocated to program administration.
