Sacramento lawmakers announced a proposal this week to measure Lora (the so-called “luxury house tax” in Los Angeles), part of a larger gambit to prevent statewide tax cuts from entering next year’s vote.
The legislation, in part, was negotiated by Mayor Karen Bass, will make key changes to measure the ULA, a bill passed by city voters in 2022 and provides hundreds of millions of dollars to address and prevent homelessness.
Senate Bill 423, co-authored by state Senator Lena Gonzalez and Tina McKinnor, made up of the rally, attempts to deprive part of the ULA that critics believe is harmful to Los Angeles’ housing output, which will greatly reduce taxes on taxes that will be imposed on ULA, which will be built on the scale if those tax rates are for sellers of apartment buildings, if those young real estate and shopping centers build old buildings, that will be built on the scale.
Ula, which one tax In a $5.3 million Los Angeles real estate sales, funding has been created for rental subsidies, affordable housing and other programs designed to address the housing crisis. Although supporters say it is operating as expected, critics believe this helps trigger a slowdown in local housing production, catch up on real estate development and make the affordability crisis worse.
“It was sold as a luxury home tax, which means big houses for the rich, but actually has a chilling impact on housing construction, especially apartments,” said former council president Bob Hertzberg.
Hertzberg, a former San Fernando Valley MP who now lives in Ventura County, hopes to pay for the overhaul competition, and Ula will spur business leaders, advocacy groups and others to withhold support for the vote proposal of Howard Jarvis taxpayers, which will be on the local taxation hike and Ula house ula how of tul twimife ula ula ula.
According to SB 423, changes to ULA will only take effect if the Howard Jarvis measures fail to meet the vote next year.
Howard Jarvis Assn. Local Taxpayer Protection Law. The measure would impose a new local tax on real estate sales, restore voters’ requirement to approve two-thirds of local taxes and eliminate the ULA, as well as two dozen other local taxes on the state.
“If they think they will convince us to give up the initiative in some way or delay the initiative in some way, they will misunderstand it,” Ouper said.
ULA, a supporter of some measures, alerted the new legislation that state lawmakers are trying to thwart the will of Los Angeles voters in the final days of the Sacramento legislative session.
When voters pass the ULA in 2022, they conveyed a clear message that Los Angeles needs more money to keep people staying — “Wealthy owners, buyers and sellers should pay,” said David Levitus, executive director of La Forward, a progressive nonprofit that supports ULA.
“The state legislature will jump in and cover the will of voters and do it with the support of some strong local elected officials and interests,” Levitus said.
State legislator Mark Gonzalez, D. Los Angeles, delayed the argument that state lawmakers (work closely with Beth) are currently trying to protect measures ULA, which he calls “a measure that needs to be determined.”
“When I was chair of the LA County Democratic Party, we tried to get it,” he said. “But the return on this investment has stalled. Now, our job is to step in, legislatively fix it, and deliver on the promise we’ve fought for.”
ULA supporters have repeatedly believed it was too early to judge the impact of the measure on housing construction, and said other factors hindered development in Los Angeles, such as rising interest rates. They say Ula is providing much-needed funding for affordable housing construction, rent and eviction protection.
Since its entry into force, ULA has raised more than $800 million. The city has been spending very slowly, but it has recently begun to develop specific plans. Last week, officials began accepting developers’ applications to spend More than $300 million Build and preserve affordable housing.
Joe Donlin, the director of the alliance behind Ula, said the city would reduce the situation by 15% to 30% if the proposed change becomes law to address the housing affordability crisis.
“It will destroy income,” he said. “This is the most meaningful resource in Los Angeles to address the homelessness and housing crisis. Where are you going to cut?”
In an interview, Hertzberg delayed the fear, saying the changes would become a “economic stimulus” for Los Angeles by stimulating new developments and construction.
Herzberg said the SB 423 will also ensure that measures ULA will not apply to sales for people who have lost their homes in this year’s Palisades fire over the next five years.
In addition to that, the legislation provides technical changes to ensure affordable housing relied on measurement measures ULA funds can qualify for bank loans. Even if Howard Jarvis measures votes, these technological changes will take effect.
Real estate industry and housing economists believe Ula makes development more expensive in two ways, damaging construction.
One is that developers of new apartment buildings sometimes sell their new properties after completion, triggering ULA tax. Even if they don’t sell, lenders consider that the developer defaults and may charge more fees to the loan in the first place.
According to SB 423, ULA measures will still tax rates over $5.3 million and 5.5% of homes selling 4%, worth $10.6 million and above.
However, tax rates for apartment buildings, retail centers, warehouses and other updated commercial properties over the age of 15 will be reduced to 1.5%.
Dave Rand, a land use lawyer representing apartment developers, said Los Angeles should expect to see more housing construction if lawmakers succeed in lowering ULA’s tax rates.
“This is a very important, welcome proposed change,” he said.
