LOS ANGELES – Two years after Los Angeles began collecting a tax on multimillion-dollar property sales, nearly all the money meant to combat the city’s worsening housing and homelessness crisis remains untouched-sitting idle in city accounts as homelessness worsens and construction stalls.
Measure ULA-nicknamed the “mansion tax,” even though it also applies to commercial and larger residential building sales-was approved by city voters in November 2022, and took effect in April 2023. It currently adds a 4 percent transfer tax on property sales above $5.15 million, and 5.5 percent on those exceeding $10.3 million. Supporters projected the measure would raise from $600 million to $1.1 billion annually to fund tenant protections, rent relief, and most urgently, new affordable housing.
Revenues have come in well below expectations, with the city collecting approximately $703 million in nearly two years. The bigger issue is the money is not getting out the door. According to an update presented to the ULA Citizen Oversight Committee last month, the City of Los Angeles has spent just $912,699-about 1.3%-on new multifamily affordable housing. Documents show a “Remaining Balance” of nearly $188 million in the “Affordable Housing Programs” pot…