The Los Angeles City Council has abandoned a plan to ask voters to exempt new multifamily projects from Measure ULA, the city’s property-transfer tax.

Instead, the council has directed the housing department to create a pilot tax credit program to lower the ULA rate for certain multifamily and mixed-use projects.

This move is the latest in a series of developments surrounding the controversial “mansion tax,” which has been criticized for slowing down luxury home sales and multifamily development.

The tax, which applies a 4% tax on sales over $5.4 million and 5.5% on sales over $10.9 million, has generated less revenue than initially projected.

The city is under pressure to meet its state-mandated housing goals, and many in the real estate industry see Measure ULA as a significant obstacle.