Letters to the Editor: How L.A.’s ‘mansion tax’ is hurting everyday renters

To the editor: Measure ULA, the so-called mansion tax approved in 2022, is hurting everyday renters, construction workers, developers and Realtors in the city of Los Angeles. The Times does a disservice to readers by failing to explain the transfer tax’s ripple effect of consequences beyond the “luxury” housing market. (“The year of the ‘mansion tax’: Hundreds of millions raised, but a chill to L.A.’s luxury market,” April 1)

Few apartments can be built in Los Angeles for less than $5 million, meaning most new and existing complexes are subject to Measure ULA’s taxes (4% on property sales above $5 million, and 5.5% on those higher than $10 million). Less supply to meet greater demand means higher rents, while restrictively expensive apartment development means fewer construction jobs.

Apartment sales have fallen off a cliff, with figures from Colliers showing the number of multifamily property sales over $5 million in L.A. dipping last year by nearly 85% compared to 2022, before Measure ULA went into effect.

We strongly support efforts to advance affordable housing and homelessness initiatives. Let’s not exacerbate the problem by attempting a counterintuitive approach that kills jobs and raises rent.

Let’s also be honest about where Measure ULA has failed to live up to its promises.

Tracy Hernandez, Los Angeles

The writer is chief executive of the Los Angeles County Business Federation.

..

To the editor: My heart bleeds for the real estate agents dealing with less profit from the sale of luxury homes and mansions because their extremely wealthy clients have found a snag in their “rich getting richer” schemes.

These agents are as responsible as anybody for the impossible rents and home prices strangling California residents, and I’m still trying to figure out what good they contribute to society as they quibble over taxes.

Dell Franklin, Cayucos, Calif.