L.A. voters weigh taxes for housing and parks
A levy on property sales that exceed $5 million is leading in early returns.
A ballot measure that would fund affordable housing and homelessness prevention policies in Los Angeles by taxing property sales exceeding $5 million led in initial returns Tuesday night.
A proposed tax that could support parks, the L.A. Zoo and open spaces in the city was trailing in the returns.
The final results may not be known for days or weeks as vote-counting continues.
The most high-profile of the city’s ballot measures, United to House L.A., would tax high-priced real estate sales. It would impose a tax of 4% on sales above $5 million and 5.5% on transactions above $10 million.
The funds would be used to help pay for the construction of new affordable housing, rehabilitate motels and hotels into low-cost housing and buy apartment buildings.
It needs a simple majority for passage.
The money would fund short-term emergency assistance and legal aid for tenants, subsidies for rentburdened seniors or disabled people, and more.
Neither mayoral candidates Karen Bass nor Rick Caruso supported the tax, which is backed by labor unions, homeless service providers, nonprofit affordable housing builders and others. Mayor Eric Garcetti also supported the measure.
Backers raised more than $4.9 million for the measure.
Opponents had argued the tax could drive up rents and make Los Angeles a harder place to do business. Despite being dubbed a “mansion tax,” most of the proceeds would come from sales of apartment buildings and commercial properties, opponents said.
A group led by the California Business Roundtable, California Business Properties Assn. and National Assn. of Realtors raised more than $6 million to fight United to House L.A. and Measure SP, a separate proposal on the ballot to raise money for parks.
The vague language of Measure SP has led to accusations that the money was being planned to help beautify the city before the 2028 Olympics, which backers denied.
The website for the measure said the funding would “humanely address homelessness in our parks by connecting those in need with appropriate support services,” among other uses.
But Measure SP gained little attention or financial support, even as it was backed by political leaders.
The measure would authorize a new parcel tax of 8.4 cents per square foot on residential and commercial buildings, generating about $227 million a year. The tax would drop to 2.2 cents per square foot upon completion of capital programs or in 30 years, whichever occurs first.
Another measure, Proposition LH, was leading in early returns.
It would allow the development, construction or acquisition of up to 5,000 additional affordable housing units in each of the city’s 15 council districts. It needs a majority of votes to pass.
Under the California Constitution, voters must authorize publicly funded affordable housing.