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

Los Angeles Times - Apr 9th, 2025
Open on Los Angeles Times

Los Angeles' Measure ULA, a transfer tax on properties over $5 million, has been a point of contention since its approval by voters in 2022. Despite multiple attempts by the real estate industry to repeal or weaken the measure, it has endured, generating approximately $600 million. This has become the city's largest source of funding for affordable housing. Critics from the industry argue that the measure dampens new multifamily housing developments, but data shows that few new units were sold within three years of construction. Calls to eliminate the measure for multifamily sales claim it would not significantly boost housing supply but would reduce critical funds for constructing affordable housing and preventing evictions.

Implemented two years ago, Measure ULA has already funded 795 units of affordable housing and created an estimated 10,000 union jobs. It has provided essential rental assistance to 11,000 individuals at risk of homelessness and supported over 100,000 tenants. These achievements come amidst federal cuts to affordable housing funds, highlighting the importance of local initiatives like Measure ULA. Despite challenges, the measure has survived court battles and referendum attempts, underscoring its significance in addressing Los Angeles' affordable housing crisis and homelessness concerns.

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RATING

6.8
Fair Story
Consider it well-founded

The article presents a timely and relevant discussion on Measure ULA, focusing on its impact on affordable housing in Los Angeles. It effectively highlights the measure's benefits and the controversy surrounding attempts to repeal it. The use of opinion letters provides diverse perspectives, although the lack of direct representation from Measure ULA's opponents limits the balance. The article is generally clear and accessible, with a logical structure that aids comprehension. However, it could benefit from greater transparency in methodology and more robust sourcing to strengthen its accuracy. Overall, the piece successfully engages with an issue of public interest, offering insights into a significant policy debate.

RATING DETAILS

7
Accuracy

The article presents several factual claims about Measure ULA, its impact, and the surrounding controversy. The description of Measure ULA as a transfer tax on properties sold over $5 million is accurate, aligning with the measure's purpose to fund affordable housing. However, the claim that the measure initially generated less revenue than expected and now reaches about $600 million lacks precise confirmation, as recent figures are not provided. The article correctly notes the lack of indexing for real estate inflation, which could broaden the tax's scope over time. Additionally, the claim about Measure ULA funding affordable housing and surviving legal challenges is substantiated, although the assertion about federal funding cuts linked to President Trump and Elon Musk is misleading, as it inaccurately attributes current policy changes to them.

6
Balance

The article primarily represents the perspective of Measure ULA supporters, highlighting its benefits and criticizing attempts to repeal it. The inclusion of letters from different authors provides some balance, yet the voices of those opposed to the measure, such as real estate developers, are not directly presented. This limits the range of perspectives and may skew the narrative towards favoring the measure without fully exploring opposing arguments. The discussion of potential reforms to Measure ULA, such as indexing the tax to property size rather than value, adds some depth but does not fully address the concerns of all stakeholders involved.

8
Clarity

The article is generally clear and well-structured, with a logical flow that guides the reader through the different perspectives on Measure ULA. The use of opinion letters allows for distinct voices and arguments to be presented, making the narrative engaging and easy to follow. The language is straightforward, with minimal jargon, ensuring accessibility to a broad audience. However, the article could benefit from clearer differentiation between opinion and fact, as some claims are presented without sufficient evidence or context.

7
Source quality

The article cites individuals with relevant expertise, such as a professor of urban policy and a director of a housing coalition, which lends credibility to the arguments presented. However, the absence of direct quotes or data from official reports or government sources weakens the overall authority of the piece. The reliance on opinion letters, while offering personal insights, may not provide the most robust evidence for the claims made. The lack of diverse sources, particularly from those in the real estate industry, limits the depth of the analysis and could introduce bias.

6
Transparency

The article provides some context for Measure ULA, including its intended purpose and the controversy surrounding it. However, there is limited explanation of the methodology behind the claims, such as how revenue figures or the impact on housing developments were calculated. The article does not disclose potential conflicts of interest, such as the affiliations of the authors with organizations that may benefit from Measure ULA. Greater transparency in these areas would enhance the reader's understanding of the underlying motivations and data supporting the claims.

Sources

  1. https://www.matthews.com/?p=101867
  2. http://acecomments.mu.nu/?post=355708z
  3. https://thebienstockgroup.com/the-la-mansion-tax-what-is-measure-ula/
  4. http://acecomments.mu.nu/?post=370923http%3A%2F%2Facecomments.mu.nu%2F%3Fpost%3D370923
  5. https://www.gormanmiller.com/blog/2024/9/25/measure-ula-the-city-of-los-angeles-mansion-tax