- Measure ULA, Los Angeles’ real estate transfer tax on high-value property deals, has generated $1.03B through November 2025.
- Funds are being used for affordable housing development, rental assistance, eviction defense, and other anti-homelessness programs.
- While proponents praise the revenue milestone, critics argue ULA has slowed multifamily and commercial development.
- A ballot measure to repeal ULA is gaining traction and may appear on the November 2026 ballot, but signature collection is lagging.
A Major Milestone for Measure ULA
According to Bisnow, Los Angeles’ Measure ULA, a real estate transfer tax targeting transactions over $5M, has officially hit $1.03B in collected revenue, per updated city data through November 2025. The tax has become the city’s largest dedicated funding stream for housing-related initiatives.
Funds are directed toward efforts like deed-restricted affordable housing construction, rental assistance, and homelessness prevention, making it a critical resource amid tightening state and federal housing budgets.
A Source of Both Relief and Controversy
Joe Donlin, director of United to House LA, emphasized the program’s scope: “No city in the country has a permanent source of funding as big as this and as comprehensive in its approach.”
In mid-2025, the L.A. City Council approved a spending plan of roughly $425M in ULA funds for programs that include legal eviction defense and homelessness services.
But not everyone is sold. Shane Phillips of UCLA’s Lewis Center noted that ULA’s slow start and chilling effect on transactions were predictable. The tax imposes a 4% levy on sales over $5M and 5.5% on those over $10M, which critics say has deterred new development and commercial deals.
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Political Headwinds and Legal Challenges
Following the Eaton and Palisades fires, Mayor Karen Bass proposed a temporary pause of ULA in the affected areas. The goal was to speed up property sales and aid recovery. Bass also explored expanding exemptions to commercial properties less than 15 years old. That proposal was later withdrawn for revisions. Meanwhile, two independent 2025 studies found that ULA has slowed both commercial real estate activity and multifamily housing starts.
A proposed 2026 ballot initiative backed by the Howard Jarvis Taxpayers Association seeks to repeal ULA altogether. To qualify, supporters must submit over 874,000 valid signatures by Feb. 25, but have only collected about 25% of that goal so far. The debate over the measure’s financial performance has been ongoing. Its impact on property sales has drawn attention since early revenue figures fell short of projections.
What’s Next
Despite its legal and economic hurdles, Measure ULA has cemented its role in L.A.’s housing landscape. Whether it can maintain long-term momentum—or survive a potential repeal—remains to be seen.
As housing costs remain high and development pressure continues, L.A.’s experiment with large-scale, voter-backed real estate taxation may serve as a case study for cities nationwide.
