Believe it or not, California thinks it has a solution to the homelessness problem that can be solved with additional taxation! Go figure.
A new measure in Los Angeles, called Measure ULA, is set to generate $900 million in taxes that will then be used for housing subsidies and tenant protections. The tax is essentially a levy on all property sales of more than $5 million, according to Bloomberg.
This “mansion tax”, if it passes, will look to “speed new construction and deliver a way out of the city’s spiraling homelessness crisis”, according to Bloomberg. It could generate some $900 million per year to provide infrastructure like affordable homes and tools like counsel for tenants in eviction courts.
Laura Raymond, director of the nonprofit Alliance for Community Transit–Los Angeles, told Bloomberg: “This would be the biggest investment in tenant protections in the history of LA.”
Yes, and it would be another reason on a long list of reasons for Californians to continue their exodus from the state to greener tax pastures like Florida and Texas.
She continued: ““We want to make sure that once this has passed, the housing experts, community organizations, community leaders and people who’ve been doing this work for many years are at the forefront of implementation.”
Meanwhile critics of the bill say it could ultimately wind up causing costs for developers and, subsequently rents, to rise. The city had tried to issue a bond in 2016 to provide the same type of relief, but that measure was “lackluster” in its success, the report says.