In the City of Los Angeles, the “Homelessness and Housing Solutions Tax” (Measure ULA), commonly referred to as the “mansion tax,” went into effect on all qualifying real property transfers on April 1, 2023. Prior to Measure ULA, all real estate transfers in the City were subject to a City transfer tax of 0.45% and a County of Los Angeles transfer tax of 0.11%. Under Measure ULA, residential and commercial real property sales and transfers valued at or over $5 million, but less than $10 million, are subject to an additional tax of 4%. Sales and transfers valued at or over $10 million are subject to an additional tax of 5.5%. The Los Angeles Times noted that, based on the Multiple Listing Service, in March 2023 there were 126 homes and condominiums listed over $5 million in the City and in April, there were only two. Understandably so, in anticipation of Measure ULA, owners and developers rushed to try to close escrow prior to the April 1st effective date.
Amanda Lee is an associate in the Real Estate, Energy, Land Use & Environmental Practice Group in the firm’s Los Angeles office.
In an effort to address the ongoing California housing crisis and exorbitant development costs, the 2022 Legislative Season saw the introduction of approximately 40 housing-related bills, resulting in the passage…Continue Reading Housing Legislation Update 2023
In an effort to decrease the skyrocketing development costs and reduce greenhouse gas emissions, Assembly Bill 2097 (AB 2097) aims to eliminate a key obstacle for new developments: parking. More specifically, starting on January 1, 2023, this law prohibits public agencies from imposing minimum automobile parking requirements for residential, commercial and other development projects if the project is located within a 1/2-mile of a “High-Quality Transit Corridor” or a “Major Transit Stop.” …