Multiple studies have concluded that Measure ULA — the so-called “mansion tax” — is slowing construction and exacerbating Los Angeles’ affordable housing crisis. Now, a group of city councilmembers will be tasked with exploring possible reforms.
The Los Angeles City Council voted unanimously Wednesday to establish a three-member Ad Hoc Committee on Measure ULA. The motion was introduced by Council President Marqueece Harris-Dawson.
“There are things in ULA that I frankly think were not in the spirit of the voters, like taxing the building of affordable housing,” he said.
Measure ULA was approved by nearly 58% of voters in 2022. It levies a 4% tax on properties that sell for more than $5 million and a 5.5% tax on properties that sell for more than $10 million. The revenue goes toward affordable housing development projects, rent relief, and legal counsel for renters facing eviction.
Despite the “mansion tax” moniker, luxury single-family homes account for less than half of ULA revenue, according to a 2025 report by RAND and UCLA’s Lewis Center for Regional Policy Studies. Most of the money generated comes from the sale of commercial and multifamily properties, including apartment buildings, and affordable housing projects are not broadly exempt from the tax.
Research indicates the tax has slowed the development of both market-rate and affordable housing projects, as a 4–5.5% transfer tax can reduce property values and make some projects financially infeasible. Sales of commercial, industrial, and multifamily properties have also declined since ULA took effect — a significant trend because those properties are often redeveloped into housing.
The committee is expected to return with a set of recommendations by April 30. Those recommendations could be incorporated into a proposed ballot measure. In the meantime, organizers have turned in signatures for another measure that would repeal ULA entirely.
Read more at LAist.