Letters to the Editor: Eliminating the so-called mansion tax would reduce resources to build affordable housing in L.A.

To the editor: Since L.A. voters approved Measure ULA (a transfer tax on the sale of properties over $5 million) in 2022, the real estate industry has tried unsuccessfully to repeal or weaken the law (“L.A.’s ‘mansion tax’ needs a remodel. Here’s how to fix it,” April 5). Three of the industry’s academic allies co-authored a column claiming “most multifamily developments involve buying a suitable site and then selling the finished building.”

They blame Measure ULA for a dip in new multifamily housing, but an examination of county assessor data from 2015-22 reveals that only a few newly built units were sold within three years. The critics’ solution — eliminating Measure ULA for multifamily sales — would not add significant housing, but would reduce vital revenues to construct new affordable housing and protect renters from eviction.

Early on, Measure ULA generated less revenue than predicted because owners of high-end properties waited to see if multiple attempts to overturn it would succeed. But the ULA revenues have been trending upward, reaching about $600 million, the city’s largest source of affordable housing funding. The industry’s academic accomplices should stop using misleading claims to weaken a successful and popular policy.

Peter Dreier, Los Angeles

The writer is a professor of urban and environmental policy at Occidental College in Eagle Rock.

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To the editor: Another issue with the mansion tax is that the $5-million threshold is not indexed to real estate inflation. So over time, more and more houses and commercial property will end up being covered by this tax. A better approach would be to tax a transaction based on the size of the house, say 3,000 square feet, while exempting commercial property like apartment buildings and manufacturing. Enacting this reform will help to limit the spread of extra-large houses, preserve neighborhoods and remove undue burdens on multifamily development — all while continuing to raise money for affordable housing.

Stewart Chesler, Granada Hills

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To the editor: Only two years in, Measure ULA has funded 795 units of affordable housing, creating an estimated 10,000 union jobs, according to a report from Occidental College. It has provided badly needed rental assistance to 11,000 people at risk of homelessness and general tenant support to more than 100,000. It’s one of the largest sources of affordable housing funding Los Angeles has ever seen when affordable housing and homelessness are our greatest concerns. It has survived court challenges and referendum attempts. Why do real estate agents, developers and their supporters keep trying to whittle it down or kill it?

The most surprising thing about the latest attempt to slash Measure ULA’s revenue is that it’s happening as President Trump and Elon Musk’s DOGE slash federal affordable housing funds. By passing Measure ULA, Los Angeles prepared as much as we possibly could for this attack. Let’s keep building housing and protecting renters with the resources we have.

Joe Donlin, Los Angeles

The writer is director of the United to House L.A. Coalition.