City Council

(19)\n26-0088\nMOTION (RAMAN - HARRIS-DAWSON) relative to a request to City\nAttorney to prepare and present ballot measure language, with a\nseverability clause, and the necessary ballot resolutions and election\nordinance to place the measure on the June 2, 2026 ballot, to amend\nthe Measure ULA ordinance.\nRecommendation for Council action:\nREQUEST the City Attorney to prepare and present ballot measure\nlanguage, with a severability clause, and the necessary ballot\nresolutions and election ordinance to place the measure on the June\n2, 2026 ballot, to amend the Measure ULA ordinance with the\nfollowing changes:\nCommercial/Multifamily & Palisades Exemptions:\nAmend Section 21.9.2 to:\n• Create a fifteen year exemption for newly constructed\nmultifamily, commercial or mixed use (i.e. multifamily and\ncommercial combined). The exemption should apply to\nmultifamily and commercial properties transferred within 15\nyears from issuance of the most recent certificate of occupancy\nfor new construction or substantial rehabilitation. Multifamily is\ndefined as any properties containing 4 or more dwelling units\nand commercial is defined as any properties containing non-\nresidential uses.\n• Amend Measure ULA to allow the Office of Finance to issue an\nexemption for three years after any natural disaster upon a\nshowing by the listed taxpayer that the Measure ULA tax will\ncause an undue hardship. This rule should be retroactive to\nowners of record of residential properties on January 7, 2025 in\nfire-impacted areas.\nAffordable Housing Production Technical Changes:\n• Amend Section 21.9.14 to add non-profit and a limited\npartnership whose general partner is a single-member limited\nliability company wholly controlled by a nonprofit corporation\nmeeting the affordable housing development qualifications.\n• Amend Section 22.618.3 (d)(l)(i)b.4 to clarify that the language\nis not applicable in cases of transfers by foreclosure, deed-in-\nlieu of foreclosure, or other similar conveyance. Replace the\nresale requirement with a first right of refusal clause for qualified\nnon-profits, Community Land Trusts, and Limited Equity\nHousing Cooperatives with affordable housing development\nqualifications to bid on the property at fair market value with a\n60 day response period.\n• Amend Section 22.618.3(d)(l)(i)b.7 to provide necessary\nflexibility for seniority to be determined based on the\nrequirements of other public funders and based on the size of\neach lender's loan.\n• Amend Section 22.618.3(d)(l)(i)b.1 and b.2 to provide flexibility\nto the Los Angeles Housing Department to permit an\nadjustment of rents up to 80% of Area Median Income to ensure\npositive cash flow, for example following the loss of subsidy or\nthe risk of foreclosure for project feasibility. This opportunity to\nshift affordability levels within a project should only be used in\ntimes of financial distress to remove any risk.\nContracting\n• Add a provision to ensure that upon City Council approval for\nmatters related to Measure ULA, the City Attorney must\nconclude review as to form in 90 days or less.