EPS provides rigorous analysis and insightful solutions to address complex challenges in real estate development, land use policy, and local government finance. We are motivated by the role our work can play in shaping places where people live and we strive to create high-quality urban environments that advance the principles of diversity, resiliency, and shared prosperity.
EPS offers a wealth of experience, robust technical expertise, and the ability to offer insightful solutions to address the challenges and opportunities of urban development.
Measure ULA, the so-called “Mansion Tax,” was passed by voters in the City of Los Angeles in 2022 to add an additional transfer tax of 4.0% – 5.5% on all property sales over $5 million to fund affordable housing and homelessness services. Critics and academic studies have noted that Measure ULA seems to have slowed new construction and property sale transactions, which some attributed to the measure’s negative impact on real estate profit margins. The LA City Council is considering placing an amendment to Measure ULA on the November 2026 ballot that would provide exemptions to certain types of properties.
EPS was engaged by the Office of the City Administrative Officer (CAO) at the City of Los Angeles to analyze the impacts of the proposed changes, including exemptions for recently built multifamily, commercial, and mixed-use projects, as well as exemptions for disaster-damaged properties and properties sold at a loss.
EPS presented findings last month to a committee of the Los Angeles City Council. EPS’s research indicated that the proposed exemptions for newly constructed buildings could lead to more housing units being built because new construction would be more financially feasible. Most of the additional units would be market-rate, though some homes would be affordable units produced as inclusionary units in mixed-income buildings or funded through linkage fees generated by the unlocked development pipeline. This affordable housing production would partially offset the impact of lost ULA revenue, which also helps fund new affordable housing. The analysis also showed that losses in ULA tax revenue are partially offset by long-term property tax revenue generated by the long-term expansion of development, which boosts the City’s property tax base.
The analysis also showed that losses in ULA tax revenue are partially offset by long-term property tax revenue generated by the long-term expansion of development, which boosts the City’s property tax base. EPS also estimated the potential loss of ULA revenue from providing a three-year exemption for fire-damaged or otherwise disaster-impacted homes and of exempting properties sold at a loss.
EPS’s housing production estimates built on housing supply simulation model results from past research by the Terner Center for Housing Innovation. EPS also incorporated findings from researchers at University of California, Irvine, and Harvard University to estimate property tax impacts. In its analysis, EPS relied on ULA transaction data provided by the LA Housing Department, permit data from the LA Department of Building and Safety, sales data obtained from the LA County Assessor, home sale data from Redfin, and real estate data from Costar.
EPS's Sacramento office recently enjoyed a volunteer opportunity with Sacramento Food Bank & Family Services (SFBFS). Staff assembled outside the local warehouse early, eager to assist with packing boxes and loading pallets for distribution across the Sacramento region. In all, the EPS team packed and prepared more than 14,000 pounds (more than an elephant!) of foodstuffs donated by or recovered from retailers, manufacturers, distributors, wholesalers and farmers. Each box contained food items for the month alongside suggested recipes and other helpful materials to connect those in need with services who can help.
SFBFS was founded in 1976 with the purpose of nourishing community members experiencing hunger. Despite being America’s Farm-to-Fork Capital, Sacramento County’s food insecurity numbers are higher than state and national averages. With over 427,000 community members living below 200% of the Federal Poverty Level, more than 1 in 4 of Sacramento County residents are at risk of hunger*. Every month, nearly 330,000 Sacramentans rely on over 200 distribution sites operated by SFBFS and their partner agencies to put food on the table for themselves and their families.
EPS is honored to play a small part in Sacramento's fight to end hunger.
* = Calculated using the number of people living at or below 200% of the Federal Poverty Level.
