🏡💚 A model for success: big win for Measure ULA
November 3rd, 2023
As many of you down in Los Angeles already know, we already have one model for success in California of a social housing campaign with transformative potential: Measure ULA.
The Measure ULA “mansion tax” requires a 4% transfer tax on all residential and commercial real estate sales in the city above $5 million and 5.5% on sales above $10 million, compared with the previous 0.45% tax. Together, this is expected to raise between $600 million and $1 billion every year.
The revenue is used to address a wide variety of housing issues, with 70% of program funds going to affordable housing, and 30% going to homelessness prevention. Within the affordable housing program, there are specific carve outs to multifamily affordable housing, acquisition and rehabilitation of affordable housing, homeownership support, and (!!) alternative models for permanent affordable housing. Although not explicitly called out as social housing, this 22.5% pot of money is recognized as funding for social housing.
Last November, voters in LA approved Measure ULA with a nearly 58% majority. And notably, this was not a top-down proposal brought forward by an elected official. This was developed and run by a diverse, multiracial, cross-sectoral, and grassroots coalition called United to House LA. This coalition didn’t come together overnight, or with a singular vision that everyone lined up behind — it came after many years of relationship-building to get to a place where groups could co-develop a proposal that was inclusive and laser-focused on the issues.
An incredible success story, Measure ULA is now being used to prompt deep discussions about social housing in LA (see this great Instragram post from ACT-LA as just one example).
And as we should expect, this did not come without significant backlash. Almost immediately after passing, the measure was challenged by a lawsuit led by none other than the Howard Jarvis Taxpayers Association (boo! hiss!). This had the result of not only posing a real threat to the law itself, but also stalling implementation. So far LA city council has only approved $150 million raised by the measure to be spent, out of caution that the measure could be ruled unconstitutional. In September, the first batch of ULA money was used to launch a new rental relief program for low-income tenants.
One of the other factors for this stalled implementation was a luxury real estate market freeze. There was a flurry of activity right until the law went into place, and then an almost unprecedented freeze on the day the law took effect. This slowdown is to be expected, as corporations and the rich wait to see if the lawsuits overturn the law. While they wait, they’ll look for loopholes to avoid paying the tax, and use the freeze as a “we told you so” punishment that tries to show the people what happens if you try to come after their money.
Last week, in a huge victory, an L.A. County judge dismissed the lawsuit challenging Measure ULA! 🥳🎉🥳 This should clear the way for spending to increase, allowing the focus to rightfully turn to implementation.
But (as again we should expect), the fight doesn’t end there. Howard Jarvis and their corporate real estate friends are vowing to appeal the decision (boo! hiss!), and will undoubtedly fight tooth and nail to continue prolonging the battle.
Luckily for us, the United to House LA coalition is prepared and ready for that fight. And they’ve got the people power to back it up.
Advocates for Measure ULA gather outside a courthouse in downtown L.A. Credit: LATimes and United to House LA
WHAT WE’RE READING
We Should Look to Vienna for Answers to Our Housing Crisis (Jacobin)
How gas utilities used tobacco tactics to avoid gas stove regulations (NPR)
Advocate letter in support of statewide zero-emission new construction building standard
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