During the November 2022 Los Angeles Midterm Elections, voters approved Measure ULA (United to House LA), formally referred to as the “Homelessness and Housing Solutions Tax” and informally referred to as the “mansion tax.” Measure ULA applies to both residential and commercial real estate located within the City of Los Angeles (not including incorporated cities like Beverly Hills or Santa Monica). Effective April 1, 2023, there is currently no end date on the tax measure.

Why Was the Measure ULA Proposed?

The measure was proposed in response to the rise in homelessness in the City of Los Angeles. Proponents intended for the tax to create a permanent, dedicated funding stream for affordable housing and resources for those at risk of homelessness. The City maintains the measure protects renters, especially seniors and persons with disabilities, from housing displacement by providing short-term emergency funding and legal services.

How Much is the Measure ULA Tax?

Measure ULA is a transfer tax imposed on any deed, instrument, or writing for real estate within the City of Los Angeles that is sold, transferred, granted, or assigned to a purchaser(s). While the original thresholds were set at $5 million and $10 million, they are adjusted annually based on the Chained Consumer Price Index.

As of July 1, 2025 and beyond, the active thresholds and rates are:

• 4% Tax: Applicable on sales from $5,300,000 to $10,600,000.
• 5.5% Tax: Applicable on sales of $10,600,000 or more.

While many liken Measure ULA to a property tax, it differs in that Measure ULA is on the entire consideration or value of the property. The tax is imposed anytime a real property sale happens rather than annually like property taxes. Measure ULA is an additional tax on top of existing Real Property Transfer Tax of 0.45% for the City of Los Angeles and the 0.11% Los Angeles County documentary transfer tax, creating a significant total tax burden on high-value transactions.

Are There Any Exemptions to Measure ULA?

There are several exemptions from the tax which depend on whether the seller, purchaser or transaction type meets the criteria set forth below:

Seller:

• s a 501(c)(3) non-profit entity;
• belongs to a Community Land Trust as defined under the Los Angeles Administrative Code;
• is part of a Limited-Equity Housing Cooperative;3 or
• owns properties being sold by a limited partnership or limited liability company where the general partners or managing members are bona fide nonprofit corporations, Community Land Trusts and/or Limited-Equity Housing Cooperatives; And
• Others found in statutes 11911 through 11930 of the CA Revenue and Taxation Code.

Purchaser:

• is a 501(c)(3) non-profit entity that received its initial IRS Determination Letter at least 10 years prior to the anticipated real property purchase and has assets of less than $1 billion;
• is the United States or any agency or instrumentality including state or territory or other federal, state, or local public agency;

Transaction:

• is a transfer deemed a gift.
• is for a property where the debt (liens) on the property equals or exceeds the property’s value, and no additional money is paid.
• is a conveyance under Federal bankruptcy cases where a transfer is ordered by a bankruptcy court.
• is a transfer between spouses or former spouses as part of a divorce settlement.
• is a transfer into or out of a trust if the beneficial ownership does not change.
• is a transfer for a deed in lieu of foreclosure or actual foreclosures.
• is a transfer between entities and individuals in which proportional interest remains the same;

Real-Time Impact: Revenue and Enforcement (2026 Update)

As of early 2026, Measure ULA reached several significant milestones and faced critical scrutiny regarding its implementation:

• Revenue Milestones: In January 2026, the City of Los Angeles reported that Measure ULA officially surpassed $1 billion in total revenue collected since its inception. While early collections in 2023 lagged behind original projections, recent years have seen a steady increase in revenue as the market adjusted.
• Market Friction: Research at UCLA estimates that the tax has significantly reduced high-value transactions, estimating that the odds of a property selling above the $5 million threshold fell by as much as 55%.¹
• Legal & Political Standing: While Measure ULA has survived initial state and federal court challenges, a statewide ballot initiative backed by the Howard Jarvis Taxpayers Association is targeting the November 2026 ballot, which could potentially repeal or severely limit the measure.

New Proposals and the 2026 “Rewrite”

The Los Angeles City Council recently considered a significant “rewrite” of Measure ULA that proposed a 15-year exemption for new construction, hardship relief for 2026 Palisades wildfire victims, and streamlined financing and operational deadlines to accelerate housing projects. However, on January 27, 2026 the Council ultimately declined to move this reform to the June 2026 ballot, leaving Measure ULA in its current form as a statewide initiative to repeal the measure looms for November.

Other Important Considerations

As of today, there is no expiration date on Measure ULA. The Director of Finance for the City of Los Angeles continues to issue rules for implementation.

While the tax has survived initial legal challenges, including a 2023 complaint in U.S. District Court alleging violations of the Equal Protection Clause, it remains a focal point of political debate. Critics point to studies suggesting a “chilling effect” on multifamily construction, while supporters highlight that Measure ULA has raised over $1 billion as of early 2026 to fund thousands of affordable housing units.

Property owners and purchasers in the City of Los Angeles should ensure their future transactions account for these significant tax implications. For specific questions regarding a transaction, contact the Hanson Bridgett Real Estate Finance Group.

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¹ The Unintended Consequences of Measure ULA, 6, Manville & Smith, UCLA Lewis Center