United to House LA has collected well over the 61,000 signatures needed to put a new luxury home tax proposal on the ballot in November. This “tiny tax on mega mansions” aims to reduce homelessness, protect renters, and provide financial assistance to low-income seniors in danger of losing their homes. You can read the “House LA” petition here for more details.
If approved by voters, the sale of Los Angeles properties between $5 million to $10 million would face an increase in the transfer-tax rate to 4% from the current 0.45%. Homes valued at $10 million or more would be charged a 5.5% rate. As an example of what this means for those affected by this proposed tax, if applied to a home that sells for $5,000,001, you may be on the hook for $200,000 in added fees!
The initiative aims to raise $800 million a year to create an estimated 26,000 homes over the next decade - that’s $8 billion over 10 years.
In 2016 Proposition HHH was approved by Los Angeles voters, approving a $1.2 billion bond to provide as many as 10,000 housing units for the unsheltered. About $1 billion of that money has been committed to projects, resulting so far in 110 homeless housing developments with more than 7,400 new units on the way.
You can click here to visit the city’s website tracking the HHH progress.