Los Angeles city attorney says Nithya Raman moved $87 million mansion‑tax money to Legal Aid Foundation
On Oct. 17, 2026, Los Angeles City Attorney Hydee Feldstein Soto released a report alleging that mayoral candidate and City Council member Nithya Raman transferred $87 million of mansion‑tax revenues to the Legal Aid Foundation of Los Angeles (LAFLA), a nonprofit described by the attorney’s office as lacking transparency.
The funds in question stem from Measure ULA, the 2022 “mansion tax” approved by voters to generate revenue for affordable housing. While the measure also taxed high‑end commercial and apartment properties, city officials earmarked a large share for nonprofit partners, including LAFLA, which provides eviction‑defense services.
According to the report, LAFLA cannot account for between one‑third and one‑half of the $87 million it received from city and county sources between 2021 and 2025. The attorney’s office calculated a discrepancy of $54.9 million to $86.6 million when comparing government payments—approximately $103.8 million from 2020‑2024—to the nonprofit’s publicly disclosed housing and eviction‑defense spending, which fell from $17.6 million in 2022 to $4.4 million in 2024.
Raman, who chaired the council’s homelessness committee, directed city funding to LAFLA and voted for the $177 million tenant‑protection contract approved by the council in March, of which $106.6 million was allocated to the nonprofit. Critics note that the same nonprofit has been involved in lawsuits against the city, raising concerns about potential conflicts of interest.
LAFLA’s financial filings show its annual revenue grew from $17.6 million in 2019 to $58.6 million in 2024, with net assets near $44 million. However, the organization’s reported spending on housing and eviction‑defense plummeted during the same period, prompting the city attorney to demand a comprehensive audit and additional documentation.
The nonprofit disputes the findings, asserting that every dollar is accounted for and that attorney‑client confidentiality limits the disclosure of certain tenant‑related information. LAFLA’s director of housing justice, Barbara Schultz, called the attorney’s claims “inaccurate and misleading,” while officials in the city’s Housing Department say the nonprofit has complied with prior information requests.
City Attorney Feldstein Soto emphasized that taxpayers deserve transparency and accountability for funds intended to protect vulnerable renters. She warned that without a full audit, the city cannot confirm that the mansion‑tax money is being used as voters intended.
Raman has been urged to provide a public explanation of the transaction as the mayoral race approaches. The city attorney’s office has not yet identified who will conduct the audit or a timeline for its completion.
