L.A. Mansion Tax Delivers:$425 Million Headed to Housing and Homelessness Relief—But at What Cost?

Big news out of City Hall this week, folks. The Los Angeles City Council just gave the green light to spend nearly$425 million from the so-called “mansion tax”—that’s Measure ULA, for those keeping score at home. If you’ve sold a property over$5 million lately, you know exactly what I’m talking about.

This is the biggest chunk of ULA money the city’s ever put to work, and it’s all going toward affordable housing and keeping folks off the street. More than$100 million is earmarked for programs that help at-risk tenants—think rent support and legal help to fight evictions. The lion’s share, over$288 million, is going straight into building and preserving affordable homes.

Now, you’ve probably heard the grumbling from the real estate crowd—and it’s not just sour grapes. Several recent studies show that Measure ULA has put a real chill on the$5 million-plus market. High-end sales have slowed to a crawl, and a lot of would-be sellers are just sitting on their properties instead of listing. That means less inventory for buyers, fewer deals getting done, and—ironically—less tax revenue coming in than the city originally hoped for. Some say it’s a classic case of good intentions running up against market realities.

Supporters, of course, are quick to point out: with state and county budgets tightening, this is real money making a real difference for Angelenos who need it most. Since voters passed Measure ULA back in 2022, the city’s raked in over$700 million. That’s a lot of roofs over heads, and a lot of hope for folks who’ve been on the edge.

If you want to talk about what this means for your neighborhood, or you’re curious how these changes might affect your property, you know where to find me.

—Herb Rim, your L.A. real estate neighbor