Alright, listen up, this is one of those things that gets under my skin. Imagine being in the construction biz in Southern Cali for three freakin’ decades, and then “BAM!” along comes the so-called “mansion tax” and just blows a hole in commercial building dreams in L.A. Man, it’s like someone hit the pause button on progress (“Letters to the Editor: Eliminating the so-called mansion tax would reduce resources to build affordable housing in L.A.,” April 9).
Here’s the lowdown – developers are looking to snag 20 to 25 cents off every buck they pour into dirt and bricks. There comes this 5-cent slash from profits. Seems tiny, right? But it’s like swiping a quarter of what they expect to pocket! It’s nuts.
Oh, and before you think it stops there, hang on. This pesky 5% sticks around for ALL future sales of the same spot. So now your property’s worth is tanking by another 5 to 10%, easy. Given a choice between L.A. and…I dunno…anywhere else, it’s a no-brainer to bail.
L.A.’s screaming for more houses, but where’s the relief? Want solutions?
Step one: make the “mansion tax” go after actual mansions! Duh. Like, hit up single-family home sales rather than throwing shade on the commercial side. This way, multi-family and commercial projects might just stand a chance.
Step two: chuck those prevailing-wage rules when building affordable homes. These rules jack up construction costs by 30 to a jaw-dropping 50%. If we’re seriously trying to tackle the housing funk that’s choking us, we gotta boost developers, not weigh ’em down when they’re, honestly, our best shot right now.
And there you have it – chaos and all, from David Botfeld, Santa Monica – a stone’s throw from those glittery beaches and chaotic housing mess.
