Mayor Karen Bass Weighs Measure ULA Pause

Los Angeles Mayor Karen Bass is reportedly looking into what’s been a sore spot for real estate since 2023: Measure ULA. The 2022 ballot measure, often called the “mansion tax,” applies a tiered assessment to residential and commercial sales within the city. The tax is adjusted each year to account for changes in consumer spending. Thresholds set to go into effect June 30 apply a 4 percent tax on properties starting at $5.3 million and 5.5 percent on those $10.6 million or more.

Background on Measure ULA

Now, city attorneys are looking into the possibility of temporarily nixing ULA to help expedite efforts to rebuild the fire-torn Pacific Palisades, which is part of Los Angeles. “There’s two schools of thought,” Bass said in response to a question on ULA’s pause from Breitbart during a March 11 press conference. “One is, that can’t happen. It has to go back to voters. And the other is that it might be able to happen with action from the council and the mayor’s office.”

Calls for Loosening Restrictions

Sounds like Bass may have taken a cue from Jason Oppenheim and Ben Belack, who opined in a January letter, signed by nearly 50 of their colleagues, who called for the loosening of restrictions during the rebuilding process. Among the calls to action was a suggestion that property in fire-affected areas be exempt from Measure ULA.

Reaction from Mayor’s Team

On Feb. 21, The Real Deal reached out to Bass’s press team inquiring if it had reviewed the letter and if the suggestions were being considered. A spokesperson for the mayor requested a copy of the letter but did not comment on whether the proposals were under consideration.

Caruso: “time and place for politics…is not now”

The Grove developer Rick Caruso made it clear where he stands on a recall attempt of Los Angeles Mayor Karen Bass, casting it as “not a good idea.” The comment made on Caruso’s X account was in relation to a recall committee formed earlier this month, helmed by Los Angeles-area agent Sahil Nandwani. The recall effort aims to seize on discontent over Bass’s handling of the Palisades Fire, in addition to safety and housing needs.

Ovation Hollywood Struggles

The mixed-use property at Hollywood Boulevard and Highland Avenue has seen its value drop as occupancy has also dipped. Ovation Hollywood, which was rebranded from Hollywood & Highland, was recently appraised at $257 million by Morningstar. That’s off 24 percent from $338 million in 2019, despite about $100 million spent in updating the property in 2023.

Shopoff Looks to Redevelop Buena Park Industrial Site

Shopoff Realty Investments saw something in a Buena Park industrial site and seized on the opportunity to buy. The Irvine-based development company paid nutritional products maker Amway $60 million for its nearly 14-acre industrial property that Shopoff plans to redevelop into townhomes.

Azria Estate Tries on a New Price

The Azria Estate in Holmby Hills has made a fashionable re-entrance into Los Angeles’ luxury residential market. The property at 10250 West Sunset Boulevard, which is being sold by fashion designer Lubov Azria, was recently re-listed for $39 million. That’s down from a high of as much as $88 million as the property’s swung on and off the market for about a decade.

Conclusion

In conclusion, Los Angeles Mayor Karen Bass is considering a pause on Measure ULA, a ballot measure that applies a tiered assessment to residential and commercial sales within the city. The move is aimed at helping to rebuild the fire-torn Pacific Palisades. The situation is complex, with different opinions on whether the pause can be implemented without going back to voters. The development is part of a larger landscape of real estate news in Los Angeles, including the struggles of Ovation Hollywood, the redeveloping of a Buena Park industrial site, and the re-listing of the Azria Estate.

FAQs

• Q: What is Measure ULA?
  A: Measure ULA, often called the “mansion tax,” applies a tiered assessment to residential and commercial sales within the city of Los Angeles.
• Q: Why is Mayor Karen Bass considering a pause on Measure ULA?
  A: The pause is being considered to help expedite efforts to rebuild the fire-torn Pacific Palisades.
• Q: What are the thresholds for the tax under Measure ULA?
  A: Thresholds set to go into effect June 30 apply a 4 percent tax on properties starting at $5.3 million and 5.5 percent on those $10.6 million or more.
• Q: What is the current status of Ovation Hollywood?
  A: Ovation Hollywood has seen its value drop by 24 percent from $338 million in 2019 to $257 million, with occupancy also dipping.
• Q: What are the plans for the Buena Park industrial site purchased by Shopoff Realty Investments?
  A: The site is planned to be redeveloped into townhomes.