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2w ago

Bass Asks Council for Three-Year Measure ULA Exemption for Palisades Fire Homeowners

City officials say transfer-tax costs are depressing offers, slowing sales, delaying rebuilding.

Joe Donlin, director of United to House LA, speaks during a rally and press conference outside Los Angeles City Hall on Tuesday, Aug. 29, 2023, ahead of a City Council vote to authorize the spending of the first $150 million generated from Measure ULA to support affordable housing and homelessness prevention programs. (Photo by Linh Tat, Los Angeles Daily News/SCNG)
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Overview

  • In a letter sent Thursday, Mayor Karen Bass requested a one-time, three-year exemption from Measure ULA for homeowners affected by the Palisades fire to speed sales and recovery.
  • If the City Council authorizes the move, the Department of Finance would create rules for the exemption, after which Bass would issue an executive directive and sign it into law.
  • Measure ULA levies a 4% tax on property sales over $5 million and 5.5% over $10 million, generating roughly $830 million as of August for housing and homelessness programs.
  • Bass argues buyers are lowering offers to account for the tax, leaving some sellers unable or unwilling to proceed and resulting in vacant lots and delayed reconstruction in the burn area.
  • The proposal originated after meetings with Rick Caruso of Steadfast LA, and the timing for Council consideration remains unclear as the council returns from recess on Tuesday.