SB 79 Housing Bill Fails, Measure ULA Overhaul Postponed, and More Real Estate News in Los Angeles
L.A.'s housing industry reels as legislation to amend Measure ULA's controversial real estate transfer tax is delayed until 2026.
This week, state and local officials announced their efforts to amend Measure ULA's real estate transfer tax through legislation, only to immediately postpone their efforts until 2026. Measure ULA, which imposes a 4 percent tax on sales of $5.3 million or more and a 5.5 percent tax on sales of $10.6 million or more, has been blamed for a decline in housing construction in Los Angeles since its implementation. The proposed legislation, SB 423, would have reduced the tax on the sale of buildings completed within the past 15 years to 1.5 percent and addressed a flaw in the Measure ULA language that prevents developers from qualifying for bank loans. However, the impacts of this proposed legislation will only move forward if a ballot initiative to cap local taxes on property sales fails to reach the ballot in 2026. This initiative, pushed by the Howard Jarvis Taxpayer Association, also aims to restore a two-thirds requirement for voter approval of local taxes and would cancel out Measure ULA and other local tax measures within the state.
Meanwhile, the California high-speed rail project faces challenges as the Trump administration attempts to revoke federal funding. However, state officials have reauthorized their cap-and-trade program, securing $1 billion in annual funding for the project through 2045. While construction on the 171-mile segment between Merced and Bakersfield is underway, the High Speed Rail Authority aims to begin laying track in 2026. However, the project's future is uncertain as the Trump administration continues to block federal funding.
The Toy Association, one block away from Barbie maker Mattel's headquarters, has