LA Homebuilders Could See $360 Million From ULA Tax Haul

L.A. Mayor Karen Bass and City Councilmember Ysabel Jurado have proposed allocating more than $360 million to developers and nonprofits to build and preserve affordable housing across the city.

The investment that underscores the administration’s focus on addressing the housing crisis, the Los Angeles Times reported. The plan, which requires City Council approval, would help finance 80 projects, including 1,528 new units and repairs to more than 2,500 existing affordable homes.

The funding comes primarily from the United to House L.A. (ULA) tax, known as the “mansion tax,” which levies a 4 percent tax on property sales between $5.3 million and $10.6 million and 5.5 percent on sales above $10.6 million. Since voters approved the measure in 2022, it has generated more than $1.1 billion through 1,500 transactions, though much of the revenue had been held back amid legal challenges. Despite its nickname, commercial properties account for most of the revenue haul and one study shows it has suppressed sales in the market.

The city previously approved $150 million in 2023 and $425 million in 2025 for housing initiatives under the same program. Among the new disbursements is $44 million for a 100‑unit development near Crypto.com Arena, part of a broader portfolio of projects detailed in a recent report from the Los Angeles Housing Department.

Jurado, who chairs the council’s Ad‑Hoc Committee on Measure ULA, which will consider the potential for revisions of the law, said the funding “turns the will of the voters into real solutions,” while noting that the committee is reviewing potential adjustments to the law amid concerns from developers that it has slowed construction for housing.

Bass and Jurado also announced a $14 million Emergency Income Support Program, offering up to $12,500 for small households and $19,000 for larger ones facing rent burdens. The program is expected to assist about 1,000 households, prioritizing seniors and residents with disabilities.

Bass framed the dual investments in building and rents as part of a strategy to prevent homelessness and expand housing supply, emphasizing that Los Angeles must “break away from the underinvestment of the past” to stabilize housing costs.

– Joel Russell