June 16, 2025 Breaking News, Latest News, and Videos

Los Angeles Delays Spending Most of the Funds Raised by “Mansion Tax” Until Legal Challenges Are Resolved

Apartment Association of Greater LA and Howard Jarvis Taxpayers Association Sue

Los Angeles will delay spending most of the money collected from a voter-approved “mansion tax” until the legal challenges against the initiative are resolved, according to Mayor Karen Bass’s 2023-24 budget plans. The city intends to allocate just $150 million of the funds raised by Proposition ULA, a ballot initiative that took effect this month, to fund the construction of more affordable housing as reported by MSN.com. This decision will prevent the city from taking a loss if a lawsuit succeeds in reversing the tax, according to budget documents released this week. 

The city anticipates it would qualify for $150 million in federal reimbursements to make up the amount. A lawsuit filed by the Howard Jarvis Taxpayers Association and the Apartment Association of Greater Los Angeles against Proposition ULA is challenging the tax, claiming it violates California’s constitution. The levy imposes an added 4% on the sale of properties valued over $5 million and 5.5% for those sold for $10 million or more, paid by the seller. City officials predict that the tax will bring in $672 million in the fiscal year starting in July, which is at the lower end of initial projections that ranged as high as $1.1 billion.

A shortage of approximately 500,000 affordable housing units is currently affecting Los Angeles County, which is worsening the region’s homelessness crisis. Within the past ten years, the number of homeless people in the area has increased by over 75% to nearly 70,000, leading to the presence of makeshift shelters on sidewalks, tent encampments, and camper vans across the county.

Los Angeles County is currently facing a shortage of approximately 500,000 affordable housing units, which is worsening the region’s homelessness crisis. The homeless population has grown by more than 75% over the past decade to almost 70,000, with individuals sleeping in tents, on sidewalks, and in camper vans across the county.

Opposition from the real estate industry to Proposition ULA has emerged, as they claim that the tax may exacerbate affordability issues by increasing rents for both commercial and residential tenants. They have also raised concerns about the timing of the tax, as higher interest rates have already had a cooling effect on the housing market. The Howard Jarvis Taxpayers Association and the Apartment Association of Greater Los Angeles have filed a lawsuit against Proposition ULA, stating that the tax violates California’s constitution, as reported by the Los Angeles Times.

Residents have previously supported tax revenue measures to address homelessness, an issue consistently ranked as a top concern in polls. In 2016, LA city taxpayers approved Measure HHH, a $1.2 billion bond measure to fund over 12,000 housing units for the homeless. However, less than half of the units have been completed, according to the Los Angeles Housing Department. The program drew public ire last year when the city controller reported cost overruns, with some units costing $840,000 each.

Stephanie Klasky-Gamer, president of LA Family Housing said, as quoted by MSN.com, “While it’s disappointing, we appreciate the city’s caution. Ideally, the city would borrow against its reserves so that they can spend more aligned to the projected dollars raised via ULA.”

<>Related Posts

Senator Alex Padilla Forcibly Removed, Handcuffed at DHS Press Briefing in Los Angeles

June 13, 2025

June 13, 2025

Security or Censorship? Padilla Removed After Questioning Secretary Kristi Noem U.S. Sen. Alex Padilla, D-Calif., was forcibly removed Thursday during...

Film Review: Ballerina

June 13, 2025

June 13, 2025

FILM REVIEWBALLERIINARated R125 MinutesReleased June 6th I’m happy to see the contrast in the style of movies playing this summer....

(Video) Senator Alex Padilla Being Forcibly Removed at Secretary Kristi Noem’s DHS Press Conference for Attempting to Ask Questions

June 12, 2025

June 12, 2025

In a disturbing and unprecedented move, FBI agents grabbed the sitting California Senator, dragged him out of the room, and...

THIS WEEKEND: Skate Series Hits Venice with $25K Top Prize

June 12, 2025

June 12, 2025

The Venice Beach event will showcase street-level action, judged on amplitude, trick difficulty, execution, style, and overall impression Skateboarders are...

Virtual Event to Explore Palisades’ Horticultural Heritage

June 12, 2025

June 12, 2025

The event will highlight how these trees continue to inspire community resilience and regrowth The Santa Monica Mosaic series will...

SMPD Announces Safety Measures Ahead of Upcoming ‘No Kings’ Rally on Westside

June 12, 2025

June 12, 2025

Enhanced patrols, rapid-response teams, and advanced technology for situational awareness are part of a detailed operational plan The Santa Monica...

THIS WEEKEND: Santa Monica Hosts 33rd Annual Juneteenth Celebration

June 12, 2025

June 12, 2025

The event, which draws over 2,000 attendees annually from Santa Monica, West Los Angeles, and beyond, was first funded by...

World-Class Chefs and Local Farms Bring Culinary Magic to Santa Monica This June

June 12, 2025

June 12, 2025

3 Nights, 3 Unforgettable Dinners: Santa Monica’s Michelin + Farm Feast Series A trio of exclusive culinary events is set...

Third Annual Rosé on Rose Wine Fest Comes to Venice Beach This Weekend

June 11, 2025

June 11, 2025

Rosé offerings priced between $8 and $10 per glass at various Rose Avenue establishments The third annual Rosé on Rose...

Mastro’s Malibu Reopens With Ocean Views, Signature Steaks, and Nearly Entire Staff Intact

June 11, 2025

June 11, 2025

Iconic Oceanfront Steakhouse Returns With Its Beloved Butter Cake, Nightly Live Music, and Sunset Glamour After a five-month closure due...

Chefs Susan Feniger and Mary Sue Milliken Serve Up Pride Month Specials That Give Back

June 11, 2025

June 11, 2025

Limited-Time Food, Cocktail Offerings at Socalo and Alice B. Support LGBTQ+ Centers In honor of Pride Month, acclaimed chefs Susan...

New Gourmet Store O&V CA Opens on Montana Avenue

June 11, 2025

June 11, 2025

The store, which celebrated its grand opening recently, specializes in a carefully curated selection of fresh, extra-virgin olive oils  A...

Santa Monica Secures Nearly $1M to Expand Neighborhood Greenway Projects

June 11, 2025

June 11, 2025

The 36-month project, set to begin this summer, includes community engagement through pop-ups, walk audits, and a citywide survey Santa...

Congregation and Family Fight to Stop Sale of Historic Venice Church

June 11, 2025

June 11, 2025

Descendants and supporters rally against alleged unlawful sale, seeking historic status and legal action Members of Friendship Baptist Church and...

Rodeo Realty’s Palisades Office Becomes First Rebuild Post-Fire

June 11, 2025

June 11, 2025

The structure, now fully framed, is set to reopen this year Rodeo Realty announced that the reconstruction of its Pacific...