Los Angeles Passes Sales Tax Hike to Fund Homeless Services

Los Angeles County voters have approved Measure A, a new sales tax increase that will fund homeless services and affordable housing. The measure, which raises the existing quarter-cent sales tax to a half-cent tax, was passed with 57% of the vote and is expected to generate over $1 billion per year indefinitely. This initiative will replace the county’s prior homelessness tax set to expire in 2027, marking a renewed commitment to addressing the county’s homelessness crisis.

At a glance:

  • Measure A doubles the existing tax for homeless services, raising about $1.1 billion per year with no end date.
  • The funds are allocated to homelessness services, affordable housing, and housing production support.
  • Measure A passed amid voter skepticism due to prior tax efforts not curbing homelessness, but proponents argued for continued investment.

Measure A will now generate substantial funds to support homeless services, including mental health and addiction treatment, with a targeted allocation of 61% of the total revenue. Additionally, 35.5% of funds will be directed to affordable housing efforts under the Los Angeles County Affordable Housing Solutions Agency. The remaining 3% will support the county’s development authority in housing production efforts. This structure aims to address the interconnected issues of homelessness and housing affordability by providing a steady revenue source for essential services.

In contrast to Measure H, the 2017 tax measure that also raised funds for homelessness but failed to curb the crisis, Measure A includes more specific funding allocations and has received a mixed response from voters. Although approved, the measure garnered less support than Measure H, indicating some voter fatigue over continued tax hikes for homelessness solutions. Voters in 2017 passed Measure H with a 69% majority, while this year’s vote showed only 57% support, reflecting growing skepticism about the effectiveness of these tax-funded initiatives.

Alan Greenlee, executive director of the Southern California Association of Non-Profit Housing, suggested that voters recognized the importance of sustaining funding for homelessness services despite doubts. He argued that “the ordinary person can realize that [stopping funding] doesn’t seem like a pathway to success.” The measure’s indefinite nature means the tax will remain in place until voters decide otherwise, providing long-term support for homelessness initiatives across Los Angeles County.

Despite Measure A’s approval, statewide measures related to affordable housing faced tougher battles. Proposition 5, which sought to make it easier to pass affordable housing bonds, was narrowly rejected by Los Angeles voters and failed statewide, with 56% of California voters opposing it. Housing policy experts, such as UCLA’s Michael Lens, attributed the opposition to confusion around the measure, as well as its implications for higher property taxes.

Similarly, Proposition 33, aimed at expanding rent control, faced substantial defeat both in Los Angeles County and statewide. It failed for the third time, with 61% of Californians voting against it. Landlord interest groups campaigned heavily against Prop. 33, spending millions to oppose the measure, which would have enabled stronger rent control policies across California.

The passage of Measure A highlights Los Angeles County’s commitment to combating homelessness, even as voters remain cautious about broader housing reforms. The tax increase promises substantial funding for services, but voter hesitation toward additional state measures signals a complex relationship between support for local homeless initiatives and broader state policies on affordable housing.