Just the Facts on "The Mansion Tax"

On November 8th, Angelinos voted on Initiative Ordinance ULA (United to House LA). Also known as Measure ULA or “the Mansion Tax”, the measure asked L.A. voters to fund and authorize affordable housing programs and resources for tenants at risk of homelessness. In the run-up to casting our votes, there was some confusion on the measure. Here are some brief facts:

• The tax would levy a 4% tax on sales/transfers of real property exceeding $5 million, and 5.5% on properties of $10 million or more until ended by voters.

• The tax is estimated to generate $600M-$1.1B annually. 92% of the proceeds would be used by the Affordable Housing Program and the Homeless Prevention Program.

• Currently, the City of Los Angeles raises an average of only $207 million per year from transfer taxes and the revenues are added to the General Fund, but not earmarked for housing.

• Measure ULA’s tax would affect approximately 4% of real estate transactions in a given year and 72% of its revenue would come from properties sold for over $10 million. Under 3% of single-family homes or condos sold in a given year would be affected.

• Revenue from this citizen-sponsored ballot initiative, if passed, could mean as many as 26,000 new residential units over the next 10 years as well as money to help tenants pay rent.

• The property value threshold subject to the tax would be adjusted annually based on the Chained Consumer Price Index. Qualified affordable housing and government entities would be exempt from the tax.

Where are they finding space in this crowded city for 26,000 new homes? Experts are looking at adaptive reuse and renovation of under-used existing buildings like hotels, office buildings and warehouse space.

This is a City measure, so it doesn't cover Greater Los Angeles. Measure ULA could make a big dent in the shortage, but any policy response that doesn’t take into account the wants and needs of homeless people may not be successful.

As of November 15, 2022, election results on Measure ULA are close. Yes votes: 362,419 (55.76%)  No votes: 287,545 (44.24%)  Keep in mind that in tight races, the results may not be determined for days or weeks after Election Day. Results must be certified by election officials by Dec. 8.