L.A.’s luxury real estate market freezes, putting 'mansion tax' funds in limbo

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After a white-hot March, L.A.'s luxury real estate market ground to a halt in April when Measure ULA kicked in, leaving the city with less money than originally projected.

. However, the budget only projected $150 million in revenue from Measure ULA.

“The $150-million number takes into account the risk of losing litigation, but it’s also reflective of the urgency of the housing and homelessness situation,” said Greg Good, a senior advisor on policy and external affairs for the Los Angeles Housing Department. “This is an amount we feel comfortable that we could refund, if necessary.”

“Sellers are taking their properties off the market, and there are some developers who won’t buy anything in the city,” said Compass agent Sally Forster Jones. “There’s hope that it gets overturned.” “These are mom-and-pop owners of real estate. People going through death, divorce, partnership dissolutions or retirement who are forced to sell as soon as possible,” Maher said. “If you don’t need to sell in ULA, you won’t. This will be a tax on people already experiencing difficult situations.”

Even if the measure is upheld in court, there’s a chance sellers will find ways to skirt the tax. Shortly after the measure passed,

 

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