Measure ULA overhaul fizzles out, SB 79 moves forward, and more

State and local officials announced legislation to amend the controversial Measure ULA real estate transfer tax this week, only to immediately postpone their efforts to 2026.

Measure ULA, which imposes a 4 percent tax on all sales of $5.3 million or more and a 5.5 percent tax on those of $10.6 million or more, has been blamed for industry observers for a dramatic decline in housing construction in Los Angeles since its implementation (its backers understandably point to other factors such as inflation, tariffs, and interest rates). SB 423, which will not move forward, would have reduced the tax on the sale of buildings completed within the trailing 15 years to 1.5 percent, while also making technical changes to address a flaw in the Measure ULA language which prevents developers which use money gathered through the tax from qualifying for bank loans.

The impacts of the proposed legislation would only move forward if a ballot initiative pushed by the Howard Jarvis Taxpayer Association fails to reach the ballot in 2026. That initiative would cap local taxes on property sales, restore a two-thirds requirement for voter approval of local taxes, and cancel out Measure ULA and several other local tax measures within the state.

While the Trump administration moves to claw back every bit of federal funding granted to the California high-speed rail project, state officials are not sitting on their hands. 

This week, state officials reauthorized its cap-and-trade program, ensuring $1 billion in annual funding for high-speed rail through 2045.

"This funding agreement resolves all identified funding gaps for the Early Operating Segment in the Central Valley and opens the door for meaningful public-private engagement with the program," said High Speed Rail Authority chief executive officer Ian Choudri in a news release. "As we move forward, I am greatly encouraged by commitments to continue productive discussions with the Administration and the Legislature to put in place statutory and regulatory enhancements that accelerate construction and give greater certainty on time and schedule for segment delivery."

Currently, 171 miles of the system are under design or construction work between Merced and Bakersfield, including 70 miles of completed guideway. The High Speed Rail Authority is aiming to begin laying track in 2026. To date, 463 miles of the 494 miles of the system planned between San Francisco and Southern California are environmentally cleared.

One block from the headquarters of Barbie maker Mattel, The Toy Association has unveiled its new home - replete with a year-round showroom. Located in a high-rise at 101 Continental Boulevard, 'The Toy Building" will serve as the Association’s West Coast hub.

“This grand opening marks an exciting milestone for the Toy Association and our industry as a whole as we officially open a dedicated home for the toy community on the West Coast!” said Toy Association executive vice president Kimberly Carcone in a statement.

The Los Angeles Times reports that the building offers 65 showrooms across four floors. The spaces are approximately 70 percent leased.

Here's what we're reading this week:

California lawmakers pass SB 79, housing bill that brings dense housing to transit hubs "The controversial bill affects single-family neighborhoods within half-miles of transit stops, sparking protests and opposition from LA City Council." (LA Times)

• Check out this map for an idea of where SB 79 would apply in L.A. County.

Downtown LA’s historic The Original Pantry Cafe will reopen its doors "UNITE HERE Local 11, the union representing the restaurant’s workers, announced Tuesday that The Pantry will reopen this week with its original staff. In a news release, the union said the group had reached a deal with the new owner and real estate entrepreneur Leo Pustilnikov." (LAist)

California electric-vehicle drivers will lose carpool lane privileges "California’s Clean Air Vehicle decal program will end, stripping solo carpool lane access from roughly 500,000 electric vehicle drivers." (LA Times)

L.A. City Slow to Start Speed Camera Pilot "At the current levels of departmental inactivity and elected official disinterest, it looks like there will be no L.A. speed camera pilot until 2027. Or 2028. Or never." (Streetsblog LA)

First onshore wave energy project in the U.S. launches in Los Angeles "It produces little power yet, but could scale along the port’s breakwater to supply as many as 60,000 households." (LA Times)

Despite Surprisingly Brisk Fire Cleanup, L.A.’s Recovery Risks Hitting a Wall "Public and private efforts sparked a months-long wave of clearing that now might be running out of energy" (Commercial Observer)

Development site next to LA Live lists for $100M "2-acre chunk owned by Salvation Army north of Crypto.com Arena" (TRD LA)

A Koreatown parking protest: Tenants stage sit-in to protest loss of parking to make way for ADUs "The owner of the apartment building on the corner of 5th Street and Kingsley Drive plans to remove several parking spaces used by long-time tenants and convert them into five accessory dwelling units. The conversion has the blessings of state and city government officials." (LA Times)

LA28 moves Olympic diving to Pasadena, citing costs and safety "LA28 determined that the swim stadium pool would require a complete reconstruction in order to meet Olympic standards. The necessary reconstruction is not able to occur simultaneously with the LA memorial Coliseum track construction projects due to limited space within the surrounding footprint. The historical nature and close proximity of these facilities adds further complexity and cost." (Fox 11)

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