exempt

An effort to exempt new apartment buildings in Los Angeles from the so-called mansion tax moved forward Wednesday, amid concerns that the tax is suppressing housing construction and making the affordability crisis worse.

In a 9 to 5 vote, the City Council directed the City Attorney to draft a ballot measure that would ask voters to change Measure ULA, which funds subsidized housing construction and homeless prevention efforts by taxing nearly all property sales over $5.3 million.

Once the proposal is drafted, it must come back to council for a final approval to make it onto the November ballot.

Wednesday was the deadline for the council to take the vote and stay on track to make the ballot this fall, said Councilmember Katy Yaroslavsky, who introduced the proposal along with Councilmember Tim McOsker.

“We should protect what is working and fix what’s not,” Yaroslavsky told colleagues before the vote. “If we fail to act today, that door closes.”

The ULA tax, approved by voters in 2022, is known as the mansion tax but applies a 4% tax to nearly all properties — whether they are mansions or not — if they sell for more than $5.3 million, increasing to 5.5% for sales at or above $10.6 million.

Under the proposed ballot measure, the ULA tax wouldn’t apply to multifamily buildings sold within 10 years of construction. There would also be some more technical changes put before voters, including to allow ULA money to be spent on temporary housing for homeless people.

Since ULA passed, apartment construction in Los Angeles has plummeted. Some studies have found that the additional tax on property sales has played a big role in the drop-off by adding extra costs for developers.

That’s led to fears that the tax, in some ways, is making the affordability crisis worse by suppressing new supply.

A coalition of business groups and pro-development activists have been pushing the council to amend ULA, in part hoping that the effort will blunt another possible measure on November’s ballot that would cancel ULA and other similar taxes altogether.

ULA supporters, however, have fought the exemption for new construction and say that other factors — like high interest rates — are the reasons for the multi-year construction drop-off. They also point to a surge in new building during the first three months of this year to argue that it’s too early to know ULA’s long-term impact.

Also on Wednesday, the council, in a unanimous vote, directed the City Attorney to draft a separate ballot measure that would exempt homeowners impacted by the Palisades fire from paying the ULA tax for five years, retroactive to Jan. 7, 2025.

“ULA has been an impediment to the Palisades recovery, leaving properties sitting empty and people mired in tax and regulatory hell,” City Councilmember Traci Park, who represents Pacific Palisades, told colleagues before the vote. “We need to move forward with this exemption.”

Similar to the broader ULA changes, the Palisades changes must receive a second council approval to make the ballot.

WASHINGTON — The Trump administration is suspending a requirement that foreign visitors from countries that have qualified for the World Cup and have bought tickets for the soccer tournament pay as much as $15,000 in bonds to enter the United States, the State Department said Wednesday.

The department imposed the bond requirement last year for countries that it said had high rates of people overstaying their visas and other security issues as part of the Republican administration’s broader crackdown on immigration.

Travelers to the United States from 50 countries are required to pay the new bond, and five of those countries have qualified for the World Cup — Algeria, Cape Verde, Ivory Coast, Senegal and Tunisia.

Citizens from those five countries who have purchased tickets from FIFA are now exempt from the visa bond requirement. World Cup team players, coaches and some staff already had been exempt from the bond requirement as part of the administration’s orders to prioritize the processing of visas for the tournament.

“The United States is excited to organize the biggest and best FIFA World Cup in history,” Assistant Secretary of State for Consular Affairs Mora Namdar said. “We are waiving visa bonds for qualified fans who bought World Cup tickets” and opted in to the “FIFA Pass” system that allows expedited visa appointments as of April 15.

The waiver is a rare loosening of immigration requirements under the administration and will ease travel burdens for at least some visitors to the U.S. for the World Cup, which begins June 11 and is co-hosted by the United States, Canada and Mexico.

The administration has taken dramatic steps to restrict immigration in ways that critics say are incongruous with the type of unifying message that a global sporting event such as the World Cup is supposed to project.

For instance, the administration has barred travelers from Iran and Haiti, though World Cup players, coaches and other support personnel are exempt. Travelers from Ivory Coast and Senegal face partial restrictions under an expanded version of that travel ban, even without the visa bond exemption.

Foreign travelers also are facing new requirements to submit their social media histories, while the administration had deployed U.S. Immigration and Customs Enforcement agents at airports recently when Transportation Security Administration personnel were not being paid.

Those measures prompted Amnesty International and dozens of U.S. civil and human rights groups to issue a “World Cup travel advisory” that warns travelers about the climate in the U.S.

In a report this month, the main advocacy group for U.S. hotels blamed visa barriers and other geopolitical issues for “significantly suppressing international demand,” leading to hotel bookings for the soccer tournament that are far below what had initially been anticipated.

The American Hotel & Lodging Assn. said travelers are concerned about potentially lengthy visa wait times and increased fees, along with uncertainty about how they’re being processed to enter the U.S.

The bond requirements are part of the administration’s larger effort to clamp down on migrants who travel to the U.S. on temporary visas but then overstay them. Visa applicants from the affected countries are required to pay $5,000, $10,000 or $15,000 in bonds, which will be refunded if the traveler complies with the terms of the visa or if the visa application is denied.

As of early April, the number of World Cup fans affected by the bond requirement was believed to be relatively small, perhaps only about 250 people, according to U.S. officials who were not authorized to comment publicly and spoke on condition of anonymity. But they said that number was changing rapidly as more people buy tickets and some with tickets opt against traveling.

FIFA had requested the waiver, which had to be approved by the State Department and Department of Homeland Security, and was the topic of discussion at multiple meetings at the White House and elsewhere in Washington for several months, the officials said.

Kim and Lee write for the Associated Press.