LA May Put $100 Million From Mansion Tax for Social Housing

Do Los Angeles voters know the meaning of “social housing”?

They should, because the city is considering a plan to spend a major chunk of its Measure ULA mansion tax toward funding “social housing” programs that push tenants to collectively buy apartment buildings and run them, the Los Angeles Times reported.

The voter-approved Measure ULA real estate transfer tax, launched in April last year, charges a 4 percent fee on all residential and commercial property sales above $5.1 million and a 5.5 percent fee on sales above $10.3 million.

It was meant to generate up to $1.1 billion a year for affordable housing and homelessness prevention initiatives. Instead, it has raked in $375 million, according to the Times.

Last year, the city approved a $150-million plan to spend funds raised by the tax on emergency rental assistance, tenant outreach and affordable housing construction.

This year, it is considering a plan to spend $160 million — of which $100 million would go toward funding “social housing” programs for renters to buy and operate multifamily properties together.

The plan, hatched by a citizens oversight committee, must be approved by the City Council. Advocates say it could be a “transformative approach” to housing.

“In L.A. today, unless you’re wealthy it’s hard to see how you could ever buy and own a home at this point,” Laura Raymond, director of the transit and housing advocacy group Act-LA, who also served as co-chair of the ULA campaign, told the Times. “Social housing will be a way for low and middle income people to own their homes or at least collectively govern their homes, giving them a feeling of control and autonomy that people that are currently renting are missing.”

She said collective governance would allow tenants to decide how much rent to pay, which repairs to make, or whether people can have pets.

Social housing is a priority for the progressive members of the L.A. City Council. Nithya Raman, Eunisses Hernandez and Marqueece Harris-Dawson introduced the motion to connect social housing to the ULA funding in May, according to Patch, citing City News Service..

If approved, the ULA spending plan would allocate more than $11 million for a program to provide interest-free loans for lower-income, first-time home buyers.

About $30 million would go to programs meant to prevent homelessness, such as monthly income support payments to struggling tenants that include seniors or residents with disabilities.

And millions in funding would pay for eviction defense and measures aimed at protecting tenants from harassment.

Measure ULA, opposed by landlords, real estate interests and taxpayer groups, has faced numerous challenges since it was approved by voters in November 2022.

Its ultimate fate is still in some limbo. A state ballot initiative that could have rescinded the tax was blocked by the state Supreme Court this summer, but opponents have continued challenging the tax in state and federal court.

The Howard Jarvis Taxpayers Association, which filed suit in state court, believes the tax is invalid and is pursuing an appeal after a judge dismissed its case late last year, said Susan Shelley, a spokeswoman for the group.

— Dana Bartholomew