SB 79 takes effect, Measure ULA to remain, and more

July 5, 2026 - 08:22

Los Angeles City Council has decided to shelve a ballot measure that would have repealed the so-called "mansion tax" on new apartment construction. The decision keeps Measure ULA in place for now, despite growing criticism from housing advocates who argue the tax is stifling development. Reform supporters say the council is failing to address a sharp drop in new housing projects, which they directly blame on the measure's added costs.

Measure ULA, approved by voters in 2022, imposes a transfer tax on properties sold for over five million dollars. Revenue from the tax is meant to fund affordable housing and tenant assistance programs. But critics claim the tax has discouraged developers from building new apartments, worsening the city's housing shortage. The council's decision to block the repeal effort has frustrated those who hoped to see the tax eliminated or at least modified.

Meanwhile, SB 79 has officially taken effect. The new state law changes how local governments can regulate housing development, aiming to streamline approvals and reduce bureaucratic delays. Supporters say it will help speed up construction of much-needed units across California. Opponents worry it will weaken local control over zoning and community planning.

The ongoing debate over Measure ULA and the implementation of SB 79 highlight the tension between raising revenue for social programs and encouraging private investment in housing. With Los Angeles facing a persistent affordability crisis, the outcome of these policy battles will have lasting consequences for renters, homeowners, and developers alike.