Lefty DSA Councilmember Ysabel Jurado and Mayor Karen Bass touted more than $300 million in housing funds expected from the city’s embattled “mansion tax,” before the money was even approved.
A press conference Thursday came ahead of any vote by the City Council or the ULA ad hoc committee.
Jurado acknowledged that reality when pressed by The California Post Thursday, confirming the proposal still needs to go through the formal approval process.
Bass’ team framed the moment as progress, pointing to homelessness efforts, housing initiatives and a broader strategy to stabilize the crisis, with a clear message that momentum is building.
The proposal leans heavily on Measure ULA, the voter-approved “mansion tax” meant to fund affordable housing and homelessness programs, which has generated more than $1 billion since taking effect in 2023.
But previous reporting by The Post shows the money has barely translated into housing. Of the roughly $1.03 billion collected, only about $93.9 million has been spent, and less than 1% has gone toward actually building, acquiring or rehabilitating housing.
Administration and overhead have consumed another $16.6 million, accounting for 17.7% of all spending.
In other words, a billion-dollar tax, with little to show in new housing stock.
“So far, the only concrete effects of Measure ULA on housing supply are to cause builders to flee Los Angeles,” said Mott Smith, an Adjunct Professor at USC with expertise in Real Estate.
Smith and others argue the tax has also affected the broader market, and a UCLA Lewis Center analysis he co-authored found that property transactions above the ULA threshold dropped between 30% and 50% in Los Angeles compared to the rest of the county.
“The measure’s patrons are proud they’ve collected a billion dollars of tax money, but they should be mortified that they’ve barely managed to spend any of it on real projects,” said Smith. “The taxpayers have gotten very little but the city’s hopes and prayers for more housing. “
City officials themselves have begun to acknowledge issues.
A recent Housing Department report recommends a set of targeted, and notably “narrow,” changes aimed at making it easier for affordable housing projects to access ULA funding, particularly when it comes to financing rules and project requirements.
This is not the first time City Hall has tried to sell the success story.
Back in mid-January, Eunisses Hernandez joined other ULA backers outside City Hall to celebrate ULA crossing the $1 billion mark, touting it as a milestone and a long-term solution to the housing crisis.
But even then, the same question lingered: where is the housing?
DSA backed mayoral hopeful Nithya Raman introduced a motion to reform the measure and explore placing changes before voters, including adjustments to financing rules and exemptions aimed at addressing concerns raised by housing providers and lenders, but the proposal was ultimately sent back to committee, delaying any potential ballot action.
City officials have also raised concerns about ongoing legal challenges tied to the measure, adding another layer of uncertainty.
