![]() This will be a tax on people already experiencing difficult situations.” “If you don’t need to sell in ULA, you won’t. People going through death, divorce, partnership dissolutions or retirement who are forced to sell as soon as possible,” Maher said. “These are mom-and-pop owners of real estate. He said that most sellers listing properties post-ULA will be the ones that have no choice. The commercial market has cooled as well, said Oron Maher of Maher Commercial Realty. Because it sold before the deadline, the seller saved $891,000. ![]() Jones handled one of the final sales before Measure ULA took effect, helping a client sell a 1930s mansion in Brentwood for $16.2 million. “Sellers are taking their properties off the market, and there are some developers who won’t buy anything in the city,” said Compass agent Sally Forster Jones. The Howard Jarvis Taxpayers Assn., one of the groups filing a lawsuit against the tax, published a page on its website with instructions on how to file for a refund if the suit is successful. Sellers are sitting on the sidelines in hopes that the tax will be overturned. If you are searching for an apartment in Southern California, there are more rentals available than last year. Eventually, transactions will get back to normal.”Ĭalifornia Some sanity is finally returning to SoCal’s brutal apartment market: A rental guide It’s logical economic behavior,” Good said. If luxury sales stay at the pace they are right now, that may take awhile. The ULA money can be spent only as it comes in, meaning that the city won’t be able to use the $150 million until the tax generates $150 million, Good said. “This is an amount we feel comfortable that we could refund, if necessary.” “The $150-million number takes into account the risk of losing litigation, but it’s also reflective of the urgency of the housing and homelessness situation,” said Greg Good, a senior advisor on policy and external affairs for the Los Angeles Housing Department. ![]() The planners landed on $150 million because they felt confident that the city could make that back through federal reimbursements from organizations. In this legal limbo, the city had to choose a budget number big enough to make an impact but small enough to pay back if necessary. County judge recently consolidated the two lawsuits challenging the measure into a single case, but the timeline for a ruling is unclear. It needs to spend as much as possible to address housing and homelessness, but if the courts decide the measure is unconstitutional, the city will have to pay back all the money it generated from the tax. However, the budget projected only $150 million in revenue from Measure ULA. ![]() Then in April, Mayor Karen Bass unveiled her first budget proposal, a $13.1-billion plan that included $1.3 billion to address homelessness. The projection was a response to a real estate market that slowed dramatically because of rising interest rates. In March, a report from the City Administrative Office lowered that number significantly, projecting $672 million in revenue from July 2023 to June 2024. When Measure ULA was on the ballot in November, proponents estimated it would generate roughly $900 million a year, based on real estate sales data from 2021 to 2022. But for a city grappling with a housing crisis, funding is needed as quickly as possible, and early signs indicate that the once-lofty projections for how much Measure ULA would raise might be much, much lower - especially for the first few months. ![]()
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