Part 5/11:
The very taxes meant to help alleviate homelessness and boost affordable housing are paradoxically making it harder to build such housing. Since many affordable housing projects exceed the $5 million mark, they become targets for the tax, which discourages their development outright. This creates a vicious cycle: fewer new units are built, leading to an even tighter housing market, higher rents, and increased homelessness.
This effect is particularly stark on multifamily and industrial buildings, key components of LA's housing and economic infrastructure. The report estimates that ULA has led to a reduction of approximately 1,910 housing units per year, including at least 168 affordable units annually—only exacerbating the city's affordability crisis.