L.A. Proposition TE voter guide: Mansion tax | Real Estate news

Critics argue that the exemption is too broad and should have included only victims whose primary residence was destroyed as opposed to landlords or investors with portfolios of properties.

Councilmember Eunisses Hernandez, the only council member who voted against putting the measure on the ballot, called it a “loophole for the ultrawealthy” and said any exemption should favor lower-income victims such as tenants who lost rentals or laborers who lost work.

“When wealthy property owners need relief, we’re willing to bend over backwards … to meet their needs and desires. But when working-class people need protections, suddenly our hands are tied,” she said at a meeting in July.

Others are hesitant to stop any funds from flowing into Measure ULA, which raises funding for housing initiatives in the midst of a housing crisis. The exemption could reduce ULA revenue by 6% per year, or $32 million annually, according to the L.A. Housing Department.