An exemption to the tax is made for sales to affordable housing uses. To many landlords who are looking at losing over $400,000 should they sell their $8 million-plus apartment building, it might look advisable to sell the property as affordable housing. They would then only pay $56,800 in transfer taxes rather than $400,000 for an $8 million building.

Read More: https://www.smobserved.com/story/2022/05/09/opinion/under-santa-monica-transfer-tax-proposal-renters-may-face-their-home-converting-to-affordable-housing/6750.html