• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home World News Us & Canada

Measure ULA reducing apartment development in city of L.A., study says

April 11, 2025
in Us & Canada
Reading Time: 4 mins read
A A
0
Measure ULA reducing apartment development in city of L.A., study says
4
SHARES
8
VIEWS
Share on FacebookShare on Twitter

Los Angeles’ “mansion tax” that funds affordable housing has likely led to a drop off in overall apartment construction, potentially worsening the city’s housing situation, according to a new report released Friday.

The study, from researchers at UCLA and Rand, focuses on Measure ULA — a voter-approved law that took effect in spring 2023. Though dubbed the mansion tax, the measure applies a 4% levy to nearly all property sales in the city over about $5 million, including apartment buildings, mini-malls and warehouses, and a 5.5% charge to sales above about $10 million.

In doing so, the real estate industry has argued that the additional costs to the buying and selling of land have made it too difficult to earn a profit on many new housing developments, thus killing potential deals.

The study released Friday supports that view, with authors basing their findings on a drop-off in sales of property where multifamily homes are typically built.

In all, researchers estimated ULA is causing a reduction of at least 1,910 units per year. Because apartments in the city often are built using density bonuses that require private developers to include some income-restricted housing, there’s also been a reduction of at least 168 affordable units annually, the report said.

“If we are building less housing, then the city is going to become even more unaffordable,” said co-author Shane Phillips, the housing initiative project manager with UCLA’s Lewis Center for Regional Policy Studies.

Los Angeles is not the only city where construction has fallen. Permits for new housing are down across the nation, as higher interest rates and material costs make it more difficult for developers to turn a profit.

ULA supporters have pointed to those rising costs to argue the measure isn’t having the negative impact its real estate industry critics claim.

Report authors attempted to adjust for that dynamic by comparing land sales in the city of L.A. to other areas in the county where transfer taxes were not increased. They found land sales dropped much more in the city, and used the difference to come up with their estimate of lost units attributable to only ULA.

In a statement, Joe Donlin, director of the United to House LA coalition behind the tax, said the report was based on “highly questionable assumptions” and furthered the interests of “real estate millionaires and billionaires.”

ULA backers have said in addition to interest rates, declining property sales may be attributed to some investors waiting it out while the real estate industry fights, so far unsuccessfully, to overturn ULA in court. They tout positive impacts the measure has brought.

In all, city data show the tax has raised nearly $633 million within two years. And the ULA coalition has said the has funded rental assistance for 11,000 Angelenos, paid for eviction defense and contributed money to the construction of 795 affordable homes.

ULA “has survived court challenges and referendum attempts from the real estate industry, and now, it’s the largest source of affordable housing funding Los Angeles has ever seen,” Donlin said.

However, Rand economist Jason Ward, who also authored the report, said the measure is hurting overall housing construction in several ways by extending beyond luxury home sales.

One, it reduces the number of land owners who want to sell in the first place, thus limiting opportunities to build. And many multifamily developers sell their projects to other investors after finishing construction, and would impacted by the tax again when doing so.

Even if developers plan to hold on to their new apartment buildings, they have mortgages on the property, and Ward said lenders must factor in the cost of a sale if the developer falls into foreclosure.

“They are going to either give you less money or give you money at a higher interest rate,” said Ward, co-director of Rand’s Center on Housing and Homelessness.

Ward and Phillips called for changes to the measure to limit its potential negative effects.

Not only do economists say that a reduction in market rate housing leads to higher rents, but the researchers argued that in the long run ULA will lead to a net loss in affordable units, as private developers of density bonus projects back away and ULA money isn’t enough to back fill the hole.

The 795 affordable units cited by the coalition, for example, only received a minority share of funds from ULA, with other sources making up most of the project costs. Some projects had also already started construction before receiving ULA funds and needed more cash to finish after they experienced cost overruns.

Phillips and Ward said that while ULA likely sped up the construction of 795 units, those homes probably would have been built eventually as other sources were cobbled together and that more affordable units would be built without ULA.

To ensure more housing is built, the report recommended exempting from ULA multifamily projects built within in the last 15 years, which the authors say would only reduce annual ULA revenue by 8% at the most.

“Negative outcomes are not inevitable,” the report reads, in calling for change.

The UCLA-Rand analysis follows a study released last week that found declining sales it attributed to ULA have led to a $25-million annual loss in property tax revenue, which will compound in coming years.



Source link

Tags: apartmentapartment developmentCityConstructiondevelopmentL.Alos angeles timesmansion taxmeasureprivate developerproperty salereal estate industryreducingreportSaleStudyULAunitward
Previous Post

Colorado Sen. Michael Bennet launches campaign for governor

Next Post

Eviction bans linked to drop in child abuse reports

Related Posts

Strauss' 'Blue Danube' waltz is launching into space to mark his 200th birthday

Strauss’ ‘Blue Danube’ waltz is launching into space to mark his 200th birthday

May 25, 2025
4
Father of 9 children killed in Israeli strike on Gaza being treated in intensive care

Father of 9 children killed in Israeli strike on Gaza being treated in intensive care

May 25, 2025
4
Next Post
Eviction bans linked to drop in child abuse reports

Eviction bans linked to drop in child abuse reports

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024

Police ID man who died after Corso Italia fight

December 23, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0
Ford F-150 Lightning driving off-road.

Is Ford Stock a Buy Now? todayheadline

May 25, 2025

NXP Semiconductors' SWOT analysis: stock resilience amid market shifts todayheadline

May 25, 2025
nvda stock

Nvidia Is Reportedly Considering a New AI Chip for China After Export Control Restrictions todayheadline

May 25, 2025
Luna Optics LN-G3-M50

Best night vision monoculars in 2025

May 25, 2025

Recent News

Ford F-150 Lightning driving off-road.

Is Ford Stock a Buy Now? todayheadline

May 25, 2025
4

NXP Semiconductors' SWOT analysis: stock resilience amid market shifts todayheadline

May 25, 2025
4
nvda stock

Nvidia Is Reportedly Considering a New AI Chip for China After Export Control Restrictions todayheadline

May 25, 2025
4
Luna Optics LN-G3-M50

Best night vision monoculars in 2025

May 25, 2025
4

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Cybersecurity
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

Ford F-150 Lightning driving off-road.

Is Ford Stock a Buy Now? todayheadline

May 25, 2025

NXP Semiconductors' SWOT analysis: stock resilience amid market shifts todayheadline

May 25, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co