May 20, 2024 #1 Local News, Forum, Information and Event Source for Venice Beach, California.

Los Angeles Delays Spending Most of the Funds Raised by “Mansion Tax” Until Legal Challenges Are Resolved

Apartment Association of Greater LA and Howard Jarvis Taxpayers Association Sue

Los Angeles will delay spending most of the money collected from a voter-approved “mansion tax” until the legal challenges against the initiative are resolved, according to Mayor Karen Bass’s 2023-24 budget plans. The city intends to allocate just $150 million of the funds raised by Proposition ULA, a ballot initiative that took effect this month, to fund the construction of more affordable housing as reported by MSN.com. This decision will prevent the city from taking a loss if a lawsuit succeeds in reversing the tax, according to budget documents released this week. 

The city anticipates it would qualify for $150 million in federal reimbursements to make up the amount. A lawsuit filed by the Howard Jarvis Taxpayers Association and the Apartment Association of Greater Los Angeles against Proposition ULA is challenging the tax, claiming it violates California’s constitution. The levy imposes an added 4% on the sale of properties valued over $5 million and 5.5% for those sold for $10 million or more, paid by the seller. City officials predict that the tax will bring in $672 million in the fiscal year starting in July, which is at the lower end of initial projections that ranged as high as $1.1 billion.

A shortage of approximately 500,000 affordable housing units is currently affecting Los Angeles County, which is worsening the region’s homelessness crisis. Within the past ten years, the number of homeless people in the area has increased by over 75% to nearly 70,000, leading to the presence of makeshift shelters on sidewalks, tent encampments, and camper vans across the county.

Los Angeles County is currently facing a shortage of approximately 500,000 affordable housing units, which is worsening the region’s homelessness crisis. The homeless population has grown by more than 75% over the past decade to almost 70,000, with individuals sleeping in tents, on sidewalks, and in camper vans across the county.

Opposition from the real estate industry to Proposition ULA has emerged, as they claim that the tax may exacerbate affordability issues by increasing rents for both commercial and residential tenants. They have also raised concerns about the timing of the tax, as higher interest rates have already had a cooling effect on the housing market. The Howard Jarvis Taxpayers Association and the Apartment Association of Greater Los Angeles have filed a lawsuit against Proposition ULA, stating that the tax violates California’s constitution, as reported by the Los Angeles Times.

Residents have previously supported tax revenue measures to address homelessness, an issue consistently ranked as a top concern in polls. In 2016, LA city taxpayers approved Measure HHH, a $1.2 billion bond measure to fund over 12,000 housing units for the homeless. However, less than half of the units have been completed, according to the Los Angeles Housing Department. The program drew public ire last year when the city controller reported cost overruns, with some units costing $840,000 each.

Stephanie Klasky-Gamer, president of LA Family Housing said, as quoted by MSN.com, “While it’s disappointing, we appreciate the city’s caution. Ideally, the city would borrow against its reserves so that they can spend more aligned to the projected dollars raised via ULA.”

Related Posts

Senior with Dementia Goes Missing in Santa Monica

May 20, 2024

May 20, 2024

He Was Last Seen Near Santa Monica UCLA Hospital on May 15 The Santa Monica Police Department is requesting the...

Injured Female Hiker Rescued From Temescal Ridge Trail

May 20, 2024

May 20, 2024

The hiker was transported directly to a nearby hospital The Los Angeles Fire Department responded to an incident involving a...

Venice Shorts: Multiple RVs Continue to Plague South Venice Blvd

May 19, 2024

May 19, 2024

Three permanently parked recreational vehicles clutter sidewalk access with couches and tables, even a lawnmower By Nick Antonicello  There are...

Venice Shorts: Heavy Agenda Faces VNC Tuesday Evening

May 19, 2024

May 19, 2024

Slew of action on numerous issues for consideration makes for a marathon meeting By Nick Antonicello  The monthly meeting of...

9th Annual MAINopoly Event Returns to Santa Monica This Weekend

May 16, 2024

May 16, 2024

Participating Establishments Include Ashland Hill, Holey Grail Donuts, Juneshine, Jameson’s Pub and Others The 9th Annual MAINopoly: A Taste of...

Homeless Man Drags Woman by the Ponytail, Charged With Multiple Felonies

May 16, 2024

May 16, 2024

The Victim Believes the Man Intended to Sexually Assault Her By Zach Armstrong A homeless man who dragged a woman several...

Venice Teachers Honored at 14th Annual WAVE Awards

May 16, 2024

May 16, 2024

The Theme Highlighted the Dedication of Educators to Fostering Unity Amid Challenging Political Times The Venice Chamber of Commerce honored...

New Grab-and-Go Café Opens in Marina del Rey Hotel

May 16, 2024

May 16, 2024

Standout Menu Items Include the Avocado Tartine MOJO Café has opened in the lobby of the Marina del Rey Hotel,...

“We Are Essential” Festival to Promote Water Conservation and Recycling

May 15, 2024

May 15, 2024

Activities Include Compost Workshops, Blind Water Tastings, Coloring Stations and Recycling-Themed Lawn Games “We Are Essential,” a community festival focusing...

Three-Story Complex Opens in Santa Monica, Offers Tenants “Creative” Office Space

May 15, 2024

May 15, 2024

The Building Is Divided Into Two Wings, Connected by a Glass-Enclosed Walk-Through Bridge Structure C.W. Driver Companies, has officially completed...

Migration Celebration Coming to Ballona Discovery Park

May 15, 2024

May 15, 2024

A Native Plant Bundle Pickup and Live Shows Included Prepare for a day of festivities at the Migration Celebration, taking...

Venice Shorts: Hampton Encampment Back on Sidewalk

May 15, 2024

May 15, 2024

New Encampment on the Saint Joseph’s side of the street worries residents By Nick Antonicello  A new sidewalk encampment has...

SMPD Make Six Arrests Over Drug Offenses

May 15, 2024

May 15, 2024

The Department Conducted an Operation Focused on Narcotics-Related Crimes By Zach Armstrong During an operation focused on narcotics-related crimes over the...

(Video) Hang-Ten Therapeutics Uses Sand, Ocean and Surfboards as a Source of Empowerment

May 15, 2024

May 15, 2024

More Information at hang-tentherapuetics.com @yovenicenews Surf therapy is a source of empowerment #therapy #surfing #losangeles #fyp #santamonica ♬ original sound...

Student Photojournalist Scores Recognition for Picture of Venice Woman Living in RV

May 14, 2024

May 14, 2024

The Woman Seen Is a Venice Beach Native Known by Her Friends as “Prophet” By Zach Armstrong Caylo Seals, a...