The Los Angeles City Council Tuesday advanced an effort to re-allocate some $15 million from the city's so-called "mansion tax" to an emergency rental assistance program for survivors of January's wildfires.
In a 14-0 vote two years to the day after Measure United to House Los Angeles went into effect, the council requested the city attorney, Housing Department and chief legislative analyst to report on how they can disencumber up to $15 million, and up to 10% from each House LA Fund expenditure category, to support fire survivors. Councilman Curren Price was absent during the vote.
Without discussion, the council approved a motion first introduced by members Bob Blumenfield, Traci Park, John Lee and Heather Hutt on Jan. 29.
Joe Donlin, director of the United to House LA Coalition, told KNX News' Emily Valdez he doesn't support the decision.
"The approach doesn't make sense because they're saying let's take some money out of the administration of ULA, and if you do that, then you're putting at risk ULA programs that need admin dollars to make them work," he said.
Donlin said more than $14 million in ULA money is already slated to help wildfire victims, and the City Council could update eligibility requirements rather than diverting administrative funds.
The Palisades Fire destroyed nearly 7,000 structures, killed 12 people and burned down much of Pacific Palisades, leaving thousands of residents displaced.
Voters passed Measure ULA in November 2022. It levied a 4% tax on property sales of more than $5 million and a 5.5% tax on sales of more than $10 million.
Revenue generated by the tax supports 11 designated ULA program categories: development of multifamily housing; alternative housing solutions; acquisition, preservation, lease, rehabilitation or operation of affordable housing; homeownership opportunities; rental and income assistance, eviction defense and prevention; tenant outreach and education; tenant harassment protections; and the formation of a tenant council.
About 70% of revenue generated by ULA supports affordable housing programs and the remaining 30% funds homelessness prevention initiatives.
Want to get caught up on what's happening in SoCal every weekday afternoon? Click to follow The L.A. Local wherever you get podcasts.
Critics of the measure such as the Howard Jarvis Taxpayers Association and the Apartment Association of Greater Los Angeles previously warned that it would have a chilling effect on the city's real estate market.
As of February, ULA has raised a total of $632 million. According to the ULA Citizens Oversight Committee, a 15-member panel overseeing ULA funds and programs, it has kept 11,000 residents in their homes through rental assistance, funded the start of construction on 795 affordable homes and created thousands of jobs.
He suggested a different approach that would update eligibility requirements for the existing $14.5 million ULA Income Support program to help wildfire victims.
The city has taken steps to support wildfire victims, such as implementing rental protections and expediting rebuilding efforts.
However, in March, the City Council shot down a proposal by members Eunisses Hernandez and Hugo Soto-Martinez, who called for an eviction and rent increase moratorium to help residents and workers who were financially impacted by the fires.
Follow KNX News 97.1 FM
Twitter | Facebook | Instagram | TikTok
