Renters in Los Angeles can anticipate more support from the city after Tuesday's expansion of programs under Measure ULA, including eviction defense, rental assistance and income support for seniors and people with disabilities.
In a 12-0 vote, the City Council approved final guidelines for Measure ULA housing production and homelessness prevention initiatives, as well as plans to use more dollars generated by the tax, which was approved by voters in April 2023 and established a tax on the sale of property of more than $5 million.
Council members Traci Park and Monica Rodriguez were absent during the vote. Councilman Curren Price recused himself because is a landlord.
The panel also approved an amendment introduced by Councilman Bob Blumenfield for a report on if and how the city might exempt or lessen the burden on nonprofits building or acquiring affordable housing for seniors.
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"I'm trying to find a way that we can help those organizations out that are doing that housing, and this is a report to help us find that pathway to help those nonprofits that are doing this important work but are unfortunately, the way it's drafted, are getting caught up in ULA,'' Blumenfield said.
Revenue collected from the tax supports 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 could only use up to $150 million for limited expenditures.
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 Jan. 1, 2022. The measure would have required a two-thirds vote for tax measures to pass instead of a simple majority.
"With that hurdle cleared, pending litigation remains the only potential threat to ULA,'' according to a report from the Housing Department.
"The litigation challenging the validity of ULA may be resolved at some point before the end of calendar year 2024. In the event that the city prevails in the litigation, it will be free and clear of any potential obligation to refund ULA revenues collected to- date,'' the report added.
Housing advocates said the council's approval marked a significant milestone in addressing homelessness. The city will now be able to access more funding -- a total of $480 million, as of October, according to a city report.
The Housing Department estimated it could allocate a total of $167.9 million for ULA programs during the current fiscal year, and increase the funding to $301.1 million for FY 2025-26.
Opponents criticized Measure ULA, among them the Howard Jarvis Taxpayers Association and the Apartment Association of Greater Los Angeles. The organizations backed the Taxpayer Protection and Government accountability Act, and has warned that the measure will have a chilling effect on the city's real estate market.
