Los Angeles, California, Proposition ULA, Tax on $5 Million House Sales Initiative (November 2022)

Los Angeles Proposition ULA
Election date November 8, 2022
Topic Local property tax
Status Approved
Type Initiative

City of Los Angeles Proposition ULA was on the ballot as an initiative in Los Angeles on November 8, 2022. It was approved.

A "yes" vote supported a ballot initiative to: enact a 4% tax on properties sold or transferred for more than $5 million and a 5.5% tax on properties sold or transferred for more than $10 million; establish the House LA Fund within the city treasury to collect additional tax revenue; and allocate revenue to projects that address housing availability at certain income thresholds and homelessness prevention.

A "no" vote opposed enacting a 4% tax on properties sold or transferred for more than $5 million and a 5.5% tax on properties sold or transferred for more than $10 million.

Election results

Los Angeles Proposition ULA
Result		Votes	Percentage
Yes		512,808	57.77%
No		374,934	42.23%

Results are officially certified.

Source

Aftermath

On December 21, 2022, lawyers for the Howard Jarvis Taxpayers Association and Apartment Association of Greater Los Angeles filed a lawsuit against Proposition ULA. The lawsuit said that "great and irreparable harm will result to plaintiffs, and to all Los Angeles property owners in being required to pay unconstitutionally imposed taxes." Laura Raymond, co-chair of the campaign behind Proposition ULA, responded, "We are disappointed — but not surprised — that real estate and corporate interests are fighting to preserve the status quo and perpetuate our homelessness and housing crisis, after unsuccessfully spending about $8 million to scare city voters."

On September 5, 2023, Judge John Kronstadt dismissed the case, ruling that the issue was not in the purview of federal courts. "Federal courts are courts of limited jurisdiction. Accordingly, when a federal court finds that it lacks subject matter jurisdiction, it must dismiss the complaint in its entirety," said Judge Kronstadt.

Measure design

Proposition ULA enacted a 4% tax on the sale or transfer of properties valued at more than $5 million and a 5.5% tax on the sale or transfer of properties valued at more than $10 million. The ballot measure established the House LA Fund to collect tax revenue and allocate funds to projects designed to prevent homelessness and to address housing availability at certain income thresholds. The ballot measure also created a citizen's oversight committee tasked with developing funding guidelines, assessing project needs, and auditing expenditures.

Text of measure

Ballot title

The ballot title for Proposition ULA was as follows:

“

Shall an ordinance funding and authorizing affordable housing programs and resources for tenants at risk of homelessness through a 4% tax on sales/transfers of real property exceeding $5 million, and 5.5% on properties of $10 million or more, with exceptions; until ended by voters; generating approximately $600 million - $1.1 billion annually; be adopted?

”

Ballot summary

The ballot summary for this measure was:

“

This citizen-sponsored ballot initiative would amend City law to add a tax on the sale or transfer of real property valued over $5 million to fund affordable housing and tenant assistance programs. The City collects a tax on the sale or transfer of property. The proposed ordinance would impose an additional tax as follows: • A 4 percent tax on the sale and transfer of real property valued over $5 million but less than $10 million; and • A 5.5 percent tax on the sale and transfer of real property valued at $10 million or greater. The property value threshold subject to the tax would be adjusted annually based on the Chained Consumer Price Index. Qualified affordable housing and government entities would be exempt from the tax. This tax is estimated to generate $600 million to $1.1 billion annually. At least 92 percent of the proceeds from the tax would fund affordable housing under the Affordable Housing Program and tenant assistance programs under the Homeless Prevention Program. No more than 8 percent would fund program administration, reporting, compliance, and implementation. This measure’s goals include increasing the supply of affordable housing, addressing the need for tenant protections and assistance programs, and building organizational capacity of organizations serving low-income and disadvantaged communities, among others. The Affordable Housing Program would fund the development of affordable housing to serve acutely low, very low, and low-income households. Housing units would be affordable for 55 years or permanently, if permitted by law, and be subject to resale restrictions. This program would fund affordable housing, including: • Development of multifamily housing; • Alternative housing solutions that can include new supportive and affordable rental or mixed rental/homeownership projects, with up to 20 percent of the units available at market rate and 20 percent set aside for acutely or extremely low-income households; • Acquisition, preservation, lease, rehabilitation, or operation of affordable housing; and • Homeownership opportunities, capacity-building for Community Land Trusts and similar organizations, operating assistance, and rental subsidies. The Los Angeles Housing Department (LAHD) would have authority to approve funding of up to $50 million per project without City Council review and approval. The measure would require payment of prevailing wages and housing developments with 40 or more units would need to comply with certain project labor agreements. If a project results in displacement of a tenant, relocation assistance and right of first refusal for a comparable unit in the development would apply. The Homeless Prevention Program would fund resources such as: • Rental and income assistance; • Eviction defense and prevention programs; • Tenant outreach and education; • Tenant harassment protections; and • A Tenant Council, comprised of tenants and currently homeless individuals living in the City. Members with diverse backgrounds would be appointed by the Mayor, subject to approval of the City Council. The Tenant Council would advise LAHD, the Citizens Oversight Committee, and City Council on activities related to tenant protections and fair housing. This measure creates a 15-member Citizens Oversight Committee, comprised of 13 voting members and two advisory youth members. Members with diverse backgrounds and expertise would be appointed by the Mayor, subject to approval of the City Council. The committee would make recommendations to the City Council on funding guidelines, conduct housing-needs assessments, monitor program implementation, and audit fund expenditures. LAHD would provide an annual Expenditure Plan to the Citizens Oversight Committee and the City Council with projected revenue and expenditures for at least three years. Funds must be expended within a specified timeline and may be periodically reallocated among categories in accordance with need, subject to certain procedures. This measure will become effective if approved by a majority of voters.

”

Full Text

The full text of this measure is available here.

Support

United to House L.A. led the campaign in support of the measure.

Supporters

Political Parties

• Democratic Party of Los Angeles
• Los Angeles County Young Democrats
• San Fernando Valley Young Democrats
• West Valley Democrats
• Westside Young Democrats

Unions

• AFSCME District Council 36
• IBEW Local 11
• SEIU 2015
• SEIU Local 721
• SEIU United Healthcare Workers West
• Teamsters Joint Council 42
• UNITE HERE Local 11

Organizations

• ACLU SoCal
• ACT LA
• Alliance for Community Transit-Los Angeles
• California Community Foundation
• California Democratic Renters Council
• California Poor People’s Campaign
• California YIMBY
• Center for Biological Diversity
• Children's Defense Fund California
• Coalition for Responsible Community Development
• Communities for a Better Environment
• Community Coalition
• Community Corp. of Santa Monica
• Community Housing Works
• Community Power Collective
• Downtown Women’s Center
• Empowerment Congress Central Area Neighborhood Development Council
• End Homelessness Now Los Angeles
• Eviction Defense Network
• Heart of LA Democratic Club
• Housing Equity & Advocacy Resource Team
• Housing Rights Center
• Human Rights Watch
• Hunger Action Los Angeles
• Immigration Center for Women and Children
• Inner City Law Center
• Koreatown Immigrant Workers Alliance
• L.A. Family Housing
• LA Chinatown Community Land Trust
• Liberty Hill Foundation
• Los Angeles Black Worker Center
• Los Angeles Center for Law and Justice
• Los Angeles Community Action Network
• Los Angeles County Federation of Labor, AFL-CIO
• Los Angeles Tenants Union
• Los Angeles Times Editorial Board
• Mental Health Advocacy Services
• National Health Foundation
• National Lawyers Guild, Los Angeles
• Neighborhood Housing Services of Los Angeles County
• Nonprofit Finance Fund
• People’s City Council Los Angeles
• Sierra Club Los Angeles
• Skid Row Housing Trust
• Social Justice Learning Institute
• Southern California Association of Nonprofit Housing
• Stonewall Democratic Club
• Tenants Together
• Union Station Homeless Services
• United Way Greater Los Angeles
• United to House LA
• West LA Democratic Club

Arguments

• Laura Raymond, director of Alliance for Community Transit-Los Angeles: "We don’t have an ongoing permanent local source (of funding)... not at the scale that we need, and so what this is going to do is to raise money at the scale that we need."
• Los Angeles Voter Information Pamphlet, Argument in Favor of Initiative ULA: “Initiative Ordinance ULA gives us a new and powerful opportunity to actually move people off of the streets and into housing. It would also prevent many low-income seniors from losing their homes when they are at-risk of homelessness. Here’s how it works: When someone sells a mansion or other real estate worth more than $5 million, Initiative Ordinance ULA would invest a small percentage of that revenue back into our communities. The money would be used to reduce homelessness, create more affordable housing, and provide financial aid and eviction protection to low-income seniors, veterans, people with disabilities, and other Angelenos at risk of homelessness. This measure is unlike anything we’ve tried before. Based on 2021-2022 real estate sales, Initiative Ordinance ULA could generate around $900 million every year. Initiative Ordinance ULA will go to work quickly by purchasing existing buildings and cutting red tape to create more affordable housing. The measure will also provide support to seniors and people with disabilities who have difficulty keeping up with housing costs.”
• Laura Raymond, director of the Alliance For Community Transit-Los Angeles: “This measure is very different from anything that has been done in Los Angeles in the past. This is going to provide a broad range of strategies to both build affordable housing, acquire affordable housing and get people immediately into homes that need it, and also secure for years and years to come a permanent source of funding for housing.”

Opposition

Opponents

Organizations

• Apartment Association of Greater Los Angeles
• BizFed
• Black Business Association
• Building Industry Association of Southern California, Los Angeles/Ventura
• Building Owners and Managers, Greater Los Angeles
• California Black Chamber of Commerce
• California Building Industry Association
• California Hispanic Chambers of Commerce
• California Hotel and Lodging Association
• California Self Storage Association
• California Small Business Association
• Greater Los Angeles Hospitality Association
• Greater Los Angeles Realtors
• Howard Jarvis Taxpayers Association
• L.A. County Business Federation
• Latin Business Association
• Los Angeles Area Chamber of Commerce
• Los Angeles County Business Federation
• Los Angeles Latino Chamber of Commerce
• National Action Network, Western Region

Arguments

• Jon Coupal, president of Howard Jarvis Taxpayers Association: "There's no need for this tax."
• Los Angeles Voter Information Pamphlet, Argument opposing Ordinance ULA: “Vote NO on Initiative Ordinance ULA because it isn’t just a 4% tax on “mansions,” it’s a 4% tax on any property in L.A. that sells for more than $5 million. It will make the purchase of apartment buildings more expensive, and that will push housing costs higher as tenants pay this tax through higher rents. It’s also a tax on the sale of supermarkets, restaurants and shopping centers. The cost of living in L.A. is already too high, and Initiative Ordinance ULA will lead to higher prices for consumers.”

Path to the ballot

See also: Laws governing local ballot measures in California

United to House L.A. collected over 98,00 signatures. The required number of valid sigantures was 61,076. The petition was presented to the Los Angeles City Council, and on June 15 the city council voted 14-0 to place the measure on the November ballot.

How to cast a vote

See also: Voting in California

See below to learn more about current voter registration rules, identification requirements, and poll times in California.

How to vote in California

Poll times

All polls in California are open from 7:00 a.m. to 8:00 p.m. Pacific Time. An individual who is in line at the time polls close must be allowed to vote.

Registration

Check your voter registration status here.

To vote in California, an individual must be a U.S. citizen and California resident. A voter must be at least 18 years of age on Election Day. Pre-registration is available at 16 years of age. Pre-registered voters are automatically registered to vote when they turn 18.

Automatic registration

California automatically registers eligible individuals to vote when they complete a driver's license, identification (ID) card, or change of address transaction through the Department of Motor Vehicles. Learn more by visiting this website.

Online registration

See also: Online voter registration

California has implemented an online voter registration system. Residents can register to vote by visiting this website.

Same-day registration

California allows same-day voter registration.

Californians must be registered to vote at least 15 days before Election Day. If the registration deadline has passed for an upcoming election, voters may visit a location designated by their county elections official during the 14 days prior to, and including Election Day to conditionally register to vote and vote a provisional ballot, which are counted once county election officials have completed the voter registration verification process. The state refers to this process as Same Day Voter Registration.

Residency requirements

To register to vote in California, you must be a resident of the state. State law does not specify a length of time for which you must have been a resident to be eligible.

Verification of citizenship

See also: Laws permitting noncitizens to vote in the United States

California's constitution requires that voters be U.S. citizens. When registering to vote, proof of citizenship is not required. Individuals who become U.S. citizens less than 15 days before an election must bring proof of citizenship to their county elections office to register to vote in that election. An individual applying to register to vote must attest that they are a U.S. citizen under penalty of perjury.

As of November 2024, two jurisdictions in California had authorized noncitizen residents to vote for local board of education positions through local ballot measures. Only one of those jurisdictions, San Francisco, had implemented that law. Noncitizens voting for board of education positions must register to vote using a separate application from the state voter registration application.

All 49 states with voter registration systems require applicants to declare that they are U.S. citizens in order to register to vote in state and federal elections, under penalty of perjury or other punishment. Seven states — Alabama, Arizona, Georgia, Kansas, Louisiana, New Hampshire, and Wyoming — have laws requiring verification of citizenship at the time of voter registration, whether in effect or not. In three states — California, Maryland, and Vermont — at least one local jurisdiction allows noncitizens to vote in some local elections. Noncitizens registering to vote in those elections must complete a voter registration application provided by the local jurisdiction and are not eligible to register as state or federal voters.

Verifying your registration

The secretary of state's My Voter Status website allows residents to check their voter registration status online.

Voter ID requirements

California does not require voters to present identification before casting a ballot in most cases. However, some voters may be asked to show a form of identification when voting if they are voting for the first time after registering to vote by mail and did not provide a driver license number, California identification number, or the last four digits of their social security number. On September 29, 2024, Gov. Gavin Newsom (D) signed SB 1174 into law prohibiting any jurisdiction in the state from adopting a local law that requires voters to present ID before voting.

The following list of accepted ID was current as of October 2024. Click here for the California Secretary of State page to ensure you have the most current information.

“

Current and valid photo identification provided by a third party in the ordinary course of business that includes the name and photograph of the individual presenting it. Examples of photo identification include, but are not limited to, the following documents: driver's license or identification card of any state; passport; employee identification card; identification card provided by a commercial establishment; credit or debit card; military identification card; student identification card; health club identification card; insurance plan identification card; or public housing identification card. Any of the following documents, provided that the document includes the name and address of the individual presenting it, and is dated since the date of the last general election…: utility bill; bank statement; government check; government paycheck; document issued by a governmental agency; sample ballot or other official elections document issued by a governmental, agency dated for the election in which the individual is providing it as proof, of residency or identity; voter notification card issued by a governmental agency; public housing identification card issued by a governmental agency; lease or rental statement or agreement issued by a governmental agency; student identification card issued by a governmental agency; tuition statement or bill issued by a governmental agency; insurance plan card or drug discount card issued by a governmental agency; discharge certificates, pardons, or other official documents issued to the individual by a governmental agency in connection with the resolution of a criminal case, indictment, sentence, or other matter; public transportation authority senior citizen and disabled discount cards issued by a governmental agency; identification documents issued by governmental disability agencies; identification documents issued by government homeless shelters and other government temporary or transitional facilities; drug prescription issued by a government doctor or other governmental health care provider; (R) property tax statement issued by a governmental agency; vehicle registration issued by a governmental agency; or vehicle certificate of ownership issued by a governmental agency.

”

See also

Local measures

• Local measures in 2022
• Local property tax on the ballot

California

• California 2022 local measures
• Local ballot measures, California
• Los Angeles, California

News and analysis

• State and local preemption conflicts
• Measures advancing national agendas