LA City Council Approves Expansion of Measure ULA Programs
City Council Votes Unanimously to Support Housing Production and Homelessness Prevention Initiatives
The Los Angeles City Council has approved final guidelines for Measure ULA, a tax on property sales of over $5 million, to support housing production and homelessness prevention initiatives. The measure was approved by voters in April 2023 and will generate revenue for the city to fund eviction defense, rental assistance, and income support for seniors and people with disabilities.
Council Members Approve Report on Nonprofit Exemptions
Councilman Bob Blumenfield introduced an amendment to request a report on exempting or lessening the burden on nonprofits building or acquiring affordable housing for seniors. This move aims to help organizations that are working to provide housing for vulnerable populations but are being caught up in the complexities of Measure ULA.
Revenue Allocation for Affordable Housing and Homelessness Prevention
Revenue generated from the tax will support the construction and preservation of affordable housing, as well as eviction defense, rental assistance, and income support for seniors and people with disabilities. However, due to legal challenges and a recent ballot measure intended to overturn ULA, the city’s Housing Department can only use up to $150 million for limited expenditures.
Clearing the Way for Further Funding
The California Supreme Court ruled that the Taxpayer Protection and Government Accountability Act could not appear on the November ballot, which called for a referendum on local special tax increases passed after January 1, 2022. This clears the way for the city to access more funding, with the Housing Department estimating that it could allocate a total of $167.9 million for ULA programs in the current fiscal year and increase funding to $301.1 million for FY 2025-26.
Housing Advocates Welcome the Development
Housing advocates have welcomed the council’s approval, which they see as a significant step towards addressing homelessness. The city will now be able to access more funding, with a total of $480 million available as of October, according to a city report.
Opponents Criticize the Measure
Opponents of Measure ULA, including the Howard Jarvis Taxpayers Association and the Apartment Association of Greater Los Angeles, have criticized the measure, warning that it will have a chilling effect on the city’s real estate market.
Frequently Asked Questions
Q: What is Measure ULA?
A: Measure ULA is a tax on property sales of over $5 million, approved by voters in April 2023, to support housing production and homelessness prevention initiatives.
Q: What is the purpose of the tax?
A: The tax will generate revenue to fund eviction defense, rental assistance, and income support for seniors and people with disabilities.
Q: How much funding is available for ULA programs?
A: The city’s Housing Department estimates that it could allocate a total of $167.9 million for ULA programs in the current fiscal year and increase funding to $301.1 million for FY 2025-26.
Q: What is the current status of the litigation challenging the validity of ULA?
A: The California Supreme Court ruled that the Taxpayer Protection and Government Accountability Act could not appear on the November ballot, which called for a referendum on local special tax increases passed after January 1, 2022. The litigation challenging the validity of ULA remains pending, but the city is hopeful that it will be resolved in its favor.
