LA City Council votes to place Measure ULA changes on the November ballot

The Los Angeles City Council voted 9-5 on a motion to direct the City Attorney to draft ballot language to amend Measure United to House Los Angeles (ULA), also known as the “mansion tax,” in November’s election. 

Multi-family and mixed-residential building projects in Los Angeles might become exempt from the so-called “mansion tax” come November’s election if approved by voters, as the Los Angeles City Council voted recently to draft ballot language to alter Measure ULA, including expanding funding to support interim housing sites and outreach services. 

If approved by voters, newly constructed multifamily and mixed-use residential buildings would be exempt from Measure ULA for 10 years.

Despite the motion passing, Council members Eunisses Hernandez, Ysabel Jurado, Imelda Padilla, Monica Rodriguez and Hugo-Soto Martinez opposed the item by voting against it. 

Councilwoman Ysabel Jurado, who leads the Measure ULA ad-hoc committee, opposed the proposal, saying the “mansion tax” has only been in effect since 2023 and that it’s too early to weigh its long-term progress.  

“We reviewed the data, we followed the evidence and after all of that conclusion, the evidence to me did not support putting Measure ULA back on the ballot at this time," Jurado said. "Not now, and not after only a few years before we fully evaluated the long-term effects, and certainly not while Angelenos are relying on the resources to stay housed."

Passed by voters in 2023, Measure ULA taxes properties, including residential projects, valued at more than $5 million. Properties valued between $5.3M to $10.6M are taxed at 4% , while properties valued at $10.6M and above are taxed at 5.5%. Those funds are used to fund affordable housing projects and provide resources to tenants at risk of homelessness. 

If amended, that could decrease funding for programs such as affordable housing, tenant assistance and homelessness prevention programs.

Proponents of amending ULA argued that the measure hinders some housing development and that amending the ‘mansion tax” could make financing new housing projects easier.

Council members Tim McOsker and Katy Yaroslavsky introduced the proposal for the 10-year exemption. McOsker described the proposal as reaching a "middle-ground" between those who support eliminating the tax altogether and those who want to leave Measure ULA as it is.

"What's being proposed is something that has the effect of making changes to ULA to put us in a position where one of the many impediments to building is reduced," McOsker said. "The wall just becomes a little bit lower for getting access to capital and building the facilities that need to be built, but also out of respect for the people."

Yaroslavsky highlighted the importance of advancing the proposal before the June deadline to keep the November ballot option open. 

"We know there's a lot of stuff happening in Sacramento still that makes it hard for us to know with complete information where this is going to land," Yaroslavsky said.

If council members didn't approve something, it would have locked out the city's chance to put local reform before voters this year.

A study from the L.A. Housing Department found that a 10-year exemption would result in a less than 2% reduction in Measure ULA revenue, according to records.

Because Measure ULA was approved by voters, any major amendment, such as the proposed 10-year exemption for new multifamily housing, must be approved by Los Angeles voters before taking effect.

In a separate motion, council members also approved to draft ballot language for a one-time, five-year exemption for residential property owners affected by the January 2025 Palisades Fire.