Measure ULA: Purpose, Funding, and Impact

Insights
Written By Fangyuan Hu

In light of recent news regarding Mayor Bass’s updated stance on Measure ULA, we take a closer look at what Measure ULA entails, its funding mechanism, and the potential implications of its continuance (or suspension).

TL;DR – Measure ULA & Mayor Bass Updates

  • Measure ULA Overview:

    • Passed in Nov 2022, imposes 4% tax on property sales over $5M, 5.5% over $10M.

    • Funds go toward affordable housing development (70%) and homelessness prevention programs (30%) like emergency rent relief, eviction defense, and tenant protections.

    • Generated ~$300–$375M in first year (lower than initial $600M–$1B projections).

    • Funded programs include rent relief for 11,000+ tenants, construction of 800+ affordable housing units, and legal support for tenants facing eviction.

  • Mayor Bass’s Position:

    • Originally neutral during campaign but embraced ULA after approval, integrating funds into her homelessness strategy.

    • Recently indicated openness to pausing ULA tax temporarily, particularly for wildfire-affected property sales, to help homeowners and encourage rebuilding.

    • Legal feasibility is being reviewed—City Charter may require voter approval to alter tax.

  • Implications of Pause:

    • Could reduce revenue for affordable housing and tenant protection programs short-term.

    • Raises tension between disaster relief efforts and maintaining stable long-term funding to tackle homelessness.

    • Any pause likely to be narrowly applied, with possible backfill strategies to limit impact.

Measure ULA:
Purpose, Funding, and Impact

Original Purpose and Goals

Measure ULA – also known as United to House LA – was a voter-approved initiative in Los Angeles (passed in November 2022) aimed at creating a dedicated funding stream for affordable housing and homelessness prevention (ULA – LAHD). It was championed by a broad coalition of community groups under the United to House LA campaign. The measure’s primary goals include increasing the supply of affordable housing, providing resources and tenant protections to prevent homelessness, and addressing L.A.’s housing affordability crisis (Los Angeles, California, Proposition ULA, Tax on $5 Million House Sales Initiative (November 2022)). In short, it promised a “once-in-a-generation” effort to tackle the root causes of homelessness by investing heavily in housing programs and tenant assistance (Measure ULA: “A Necessary Lifeline” - UTLA) (Los Angeles, California, Proposition ULA, Tax on $5 Million House Sales Initiative (November 2022)).

How Measure ULA Funds Housing and Homelessness

Measure ULA is funded through a special real estate transfer tax (sometimes dubbed the “mansion tax”). It imposes a 4% tax on property sales or transfers above $5 million, and 5.5% on sales above $10 million (Los Angeles, California, Proposition ULA, Tax on $5 Million House Sales Initiative (November 2022)). The revenue from this tax goes into a dedicated “House LA” fund within the city treasury, which by law must be used for affordable housing projects and anti-homelessness programs (Los Angeles, California, Proposition ULA, Tax on $5 Million House Sales Initiative (November 2022)). The measure was initially projected to generate around $600 million to $1.1 billion per year for these purposes (Los Angeles, California, Proposition ULA, Tax on $5 Million House Sales Initiative (November 2022)) (Los Angeles, California, Proposition ULA, Tax on $5 Million House Sales Initiative (November 2022)), with at least 92% of funds directed to housing and homelessness programs (capping administrative costs at 8% (Los Angeles, California, Proposition ULA, Tax on $5 Million House Sales Initiative (November 2022))).

Allocation: The ordinance stipulates that 70% of ULA funds go to an “Affordable Housing Program” and 30% to a “Homelessness Prevention Program.” The Affordable Housing Program supports construction, rehabilitation, and preservation of affordable housing units, including innovative models like community land trusts and permanent supportive housing (ULA – LAHD) (ULA – LAHD). The Homelessness Prevention side funds tenant assistance and protection efforts – such as emergency rent relief, income support for low-income seniors or disabled renters, eviction defense (legal counsel), tenant outreach/education, and anti-harassment enforcement (ULA – LAHD) (ULA – LAHD). By design, Measure ULA created a Citizens Oversight Committee to guide spending and ensure funds are used effectively for these categories (Los Angeles, California, Proposition ULA, Tax on $5 Million House Sales Initiative (November 2022)).

Implementation Timeline: The ULA tax officially took effect on April 1, 2023, a few months after Mayor Karen Bass took office (ULA – LAHD). All property deals in the city above the $5 million threshold after that date incur the tax, unless exempt (e.g. affordable housing developers can seek exemptions when they acquire property for new affordable units (ULA – LAHD)).

Programs Supported and Early Impacts of Measure ULA

Despite a cooling of the luxury real estate market after the tax kicked in, Measure ULA has already generated hundreds of millions of dollars for housing programs in its first year – albeit less than originally forecast. (Initial estimates of $600M–$1B/year were optimistic; in reality about $300–$375 million was raised in year one of the tax (Can Mayor Karen Bass Suspend Measure ULA to Help LA Rebuild?) ( L.A. Brokers Want to Pause the City’s Unpopular ‘Mansion Tax’ Amid Wildfires - Mansion Global ) due to a slowdown in high-end sales.) These funds have been put to work in several key areas:

  • Emergency Rental Assistance & Eviction Prevention: A major focus of ULA’s first-year spending has been keeping vulnerable Angelenos housed. Over 11,000 city residents have been approved for emergency rent assistance through ULA funds, helping them avoid eviction (Measure ULA: “A Necessary Lifeline” - UTLA). This short-term assistance has provided relief to those facing economic hardship – including households with children (over $5 million in aid), tenants with disabilities (over $2 million), and seniors (over $1 million), allowing them to catch up on rent and stay in their homes (Measure ULA: “A Necessary Lifeline” - UTLA). ULA also supports a new Right-to-Counsel program for tenants: the city earmarked $25 million for eviction defense legal services as part of the FY2023-24 budget using ULA revenue (LA Mayor’s Budget Includes $150M From Measure ULA). Additional funds have been directed to tenant outreach and anti-harassment programs to educate renters on their rights and prevent unlawful evictions (LA Mayor’s Budget Includes $150M From Measure ULA).

  • Affordable Housing Development: About 70% of ULA funds are dedicated to building or acquiring affordable housing, and the city has started deploying that money. In mid-2023, the City Council approved an initial $150 million ULA spending plan, including about $62 million for affordable housing acquisition and rehabilitation projects (LA Mayor’s Budget Includes $150M From Measure ULA). ULA dollars are already accelerating the construction of nearly 800 new affordable housing units citywide (Measure ULA: “A Necessary Lifeline” - UTLA). For example, the first housing development to receive ULA funding is a nearly completed apartment complex at Vermont Ave. and Santa Monica Blvd, which will provide 187 permanently affordable units for more than 400 people (with on-site transit access and services) (Measure ULA: “A Necessary Lifeline” - UTLA). This project – and others in the pipeline – illustrate how ULA is jump-starting long-term solutions by adding new affordable homes in Los Angeles.

These early investments underscore the impact of Measure ULA: in just one year, it has funded rent relief for thousands of at-risk tenants and broken ground on desperately needed affordable units. Supporters call it a “necessary lifeline” for the city’s working families facing housing insecurity (Measure ULA: “A Necessary Lifeline” - UTLA). The measure has withstood legal challenges from landlord and anti-tax groups (lawsuits seeking to invalidate ULA were dismissed by the courts in 2023 (Mayor Bass Applauds City Council's Unanimous Approval of Additional Funding for Short-Term Rental Assistance | Mayor Karen Bass)), allowing the city to move forward with these programs.

Mayor Karen Bass’s Position and Latest Updates

Bass’s Initial Support and Implementation of ULA

Karen Bass became Mayor of Los Angeles just as Measure ULA was approved by voters. During her 2022 mayoral campaign, Bass did not take a public position in support of Measure ULA (Can Mayor Karen Bass Suspend Measure ULA to Help LA Rebuild?), likely because it was a citizen-led initiative on the ballot. However, once it passed, Mayor Bass embraced the measure as a tool in her administration’s fight against homelessness. In her first State of the City address and budget proposal in April 2023, Bass allocated $150 million in expected Measure ULA revenue to fund homeless housing and tenant assistance (LA Mayor’s Budget Includes $150M From Measure ULA). This included roughly $62 million for affordable housing acquisitions/rehab, $25 million for eviction defense services, $25 million for income support to rent-burdened seniors and disabled tenants, and $20 million for short-term emergency rental aid (LA Mayor’s Budget Includes $150M From Measure ULA), among other program funds. Bass did acknowledge uncertainty around the funds – her budget noted ULA was under litigation and might not materialize (LA Mayor’s Budget Includes $150M From Measure ULA) – but she proceeded with the assumption that the money would be available, indicating a commitment to the measure’s goals.

The Mayor also publicly supported ULA when it came under legal threat. In fall 2023, after a lawsuit by anti-tax groups aimed at overturning Measure ULA was dismissed, Bass applauded the court’s decision upholding ULA (Can Mayor Karen Bass Suspend Measure ULA to Help LA Rebuild?). Her administration touted the ULA-funded rental assistance programs and mobilized city departments to start deploying the new funds (Mayor Bass Applauds City Council's Unanimous Approval of Additional Funding for Short-Term Rental Assistance | Mayor Karen Bass) (Mayor Bass Applauds City Council's Unanimous Approval of Additional Funding for Short-Term Rental Assistance | Mayor Karen Bass). In short, while Bass was initially neutral during the campaign, as Mayor she embraced ULA’s revenue in her homelessness strategy and defended the measure’s legality once it was law.

Considering a “Pause” on Measure ULA

Recently, Mayor Bass has signaled openness to temporarily suspending Measure ULA’s tax in limited circumstances. In March 2025, she revealed that the City is **“looking into” ways to pause the ULA transfer tax – dubbed the “mansion tax” – possibly to aid in disaster recovery (Can Mayor Karen Bass Suspend Measure ULA to Help LA Rebuild?). Specifically, this discussion emerged in the wake of devastating wildfires (such as the January 2025 Palisades fire) that destroyed homes in high-value neighborhoods. At a press conference, Bass noted there is “cause to temporarily suspend” the tax and said her team, along with the City Council, is examining if a temporary suspension is legally feasible (Can Mayor Karen Bass Suspend Measure ULA to Help LA Rebuild?). “Maybe temporarily — we’re looking into that,” Bass said, acknowledging there are differing legal opinions on whether the Mayor and Council have the authority to do so without voter approval (Can Mayor Karen Bass Suspend Measure ULA to Help LA Rebuild?).

The reason Bass cited for a possible pause is to support wildfire victims in rebuilding their homes (Can Mayor Karen Bass Suspend Measure ULA to Help LA Rebuild?). Under current rules, if an affected homeowner in Los Angeles sells their destroyed property or a developer buys land to rebuild housing in that area, the ULA tax (4% or 5.5%) could apply if the value exceeds $5 million. Some real estate agents and homeowners have argued this creates a financial barrier to recovery: it penalizes those trying to sell burnt properties or rebuild in costly fire-prone areas ( L.A. Brokers Want to Pause the City’s Unpopular ‘Mansion Tax’ Amid Wildfires - Mansion Global ) ( L.A. Brokers Want to Pause the City’s Unpopular ‘Mansion Tax’ Amid Wildfires - Mansion Global ). In response, a coalition of brokers in L.A. sent officials a letter in early 2025 urging a temporary exemption or suspension of ULA taxes for fire-damaged properties to ease rebuilding costs ( L.A. Brokers Want to Pause the City’s Unpopular ‘Mansion Tax’ Amid Wildfires - Mansion Global ) ( L.A. Brokers Want to Pause the City’s Unpopular ‘Mansion Tax’ Amid Wildfires - Mansion Global ). Bass’s public statement indicates she is taking these concerns seriously. Her deputy has said the City is exploring “every possible option to support fire survivors and accelerate recovery” (Can Mayor Karen Bass Suspend Measure ULA to Help LA Rebuild?), which includes the possibility of a ULA tax pause for those transactions.

It’s important to note that no suspension has been enacted yet, and it remains legally uncertain whether the City can unilaterally pause or modify a voter-approved tax. The Los Angeles City Charter generally requires that ballot measures can only be overturned or altered by voters or by amending the City Charter (Can Mayor Karen Bass Suspend Measure ULA to Help LA Rebuild?). Bass acknowledged one “school of thought” that says the ULA tax cannot be changed without another public vote, but she also noted another view that perhaps the Council and Mayor might have some leeway (Can Mayor Karen Bass Suspend Measure ULA to Help LA Rebuild?). City attorneys are currently reviewing what authority (if any) the City has to implement a temporary suspension of Measure ULA’s provisions (Can Mayor Karen Bass Suspend Measure ULA to Help LA Rebuild?). Until that analysis is complete, Bass has not taken further action, and ULA remains in effect citywide.

Reasons for Proposed Changes to ULA

Mayor Bass’s consideration of adjusting Measure ULA reflects a balance of its benefits versus unintended consequences in specific scenarios. The immediate catalyst is the extraordinary situation of disaster recovery. The recent wildfires in affluent parts of L.A. raised a concern that the ULA tax could hinder rebuilding efforts: families who lost $5M+ homes might face a large tax if they sell their land, and developers face extra costs to acquire and redevelop burned properties ( L.A. Brokers Want to Pause the City’s Unpopular ‘Mansion Tax’ Amid Wildfires - Mansion Global ). By potentially pausing the tax for fire-damaged home sales, officials hope to encourage faster reconstruction of housing in those areas without the tax acting as a disincentive ( L.A. Brokers Want to Pause the City’s Unpopular ‘Mansion Tax’ Amid Wildfires - Mansion Global ). As one brokers’ letter put it, exempting these transactions for a few years would “encourage [developers] to purchase land from homeowners at reasonable prices and quickly rebuild these devastated communities” ( L.A. Brokers Want to Pause the City’s Unpopular ‘Mansion Tax’ Amid Wildfires - Mansion Global ). Bass appears sympathetic to this argument in the context of a disaster that destroyed entire neighborhoods.

Another reason behind reevaluating ULA is the lower-than-expected revenue performance and its broader economic impacts. Measure ULA has fallen short of its lofty revenue projections, collecting only about $300–$375 million in its first year, versus the $600 million to $1+ billion/year that was anticipated (Can Mayor Karen Bass Suspend Measure ULA to Help LA Rebuild?) ( L.A. Brokers Want to Pause the City’s Unpopular ‘Mansion Tax’ Amid Wildfires - Mansion Global ). This shortfall is largely because high-end property sales in L.A. plummeted once the tax took effect – many luxury homeowners either rushed to sell before April 2023 or pulled their properties off the market to avoid the tax. Fewer than 5% of real estate deals in the city are expensive enough to incur the ULA tax, but historically those top-tier deals made up around 40% of the city’s total property sales volume (by value) (Can Mayor Karen Bass Suspend Measure ULA to Help LA Rebuild?). The steep new tax contributed to a chilling effect on these transactions, which meant less revenue than hoped and a slowdown in sales of high-value properties. Some experts and industry stakeholders warn that if the tax significantly discourages development or sales, it could have a side effect of constraining housing supply or investment in the city – the opposite of ULA’s intent. Bass’s recent openness to a pause may indicate she is weighing these economic feedbacks: while ULA raises money for housing, it may also be impacting real estate behavior in ways that concern her, especially when it comes to rebuilding after disasters or overall market health.

It’s worth noting that Bass never opposed the core purpose of ULA – she has consistently prioritized funding homelessness solutions – but she is pragmatically assessing its implementation. Initially, Bass stayed neutral on ULA as a candidate (Can Mayor Karen Bass Suspend Measure ULA to Help LA Rebuild?), then supported it as mayor (once voters approved it) and even chastised real estate investors who resisted contributing (one of her deputies famously said developers upset about ULA were having “a bit of a temper tantrum” over paying their share) (Can Mayor Karen Bass Suspend Measure ULA to Help LA Rebuild?). Now, faced with an emergency (wildfires) and an underperforming revenue stream, Bass is considering fine-tuning the policy. In summary, her proposed changes are driven by two main factors: (1) Compassionate relief for homeowners and communities recovering from a disaster, and (2) concern over ULA’s economic impact and revenue gap, which could justify a re-calibration of the measure without abandoning its mission.

Impact of a ULA Suspension on
Housing & Homelessness Initiatives

Any significant change to Measure ULA – especially a pause in collecting the tax – would have serious implications for L.A.’s affordable housing plans and homeless services. The ULA tax is currently a cornerstone of local funding for these programs, so suspending it, even temporarily, means those dollars would shrink or disappear. City officials have acknowledged that without ULA, they would need to find other money to keep programs running (LA Mayor’s Budget Includes $150M From Measure ULA). In fact, when Bass’s team prepared the 2023 budget, they had a contingency: if the ULA revenue was lost in court, the City identified federal funds to backfill the $150 million housing programs line item (LA Mayor’s Budget Includes $150M From Measure ULA). This illustrates the scale of ULA’s contribution – it would require tapping into emergency or one-time funds to replace it. A pause now could create a funding gap unless the City secures alternative sources or dramatically cuts programs.

For affordable housing development, reduced funding could delay or downsize projects. The momentum built from ULA – like accelerating those 795 new units (Measure ULA: “A Necessary Lifeline” - UTLA) – might slow if the stream of money dries up. Non-profit housing developers rely on ULA grants and loans to fill financing gaps; without it, projects could stall or become more dependent on state/federal grants (which are limited). Similarly, homelessness prevention efforts would feel an immediate pinch. The emergency rental assistance that kept 11,000 families housed in the past year (Measure ULA: “A Necessary Lifeline” - UTLA) might not be able to enroll new households, or the duration/amount of assistance could be cut back. The expansion of eviction defense (free legal counsel for tenants) and outreach programs would also be in jeopardy without ongoing ULA funding. In short, a ULA suspension means less money for eviction lawyers, fewer rent subsidies, and possibly fewer newly built affordable apartments at a time when Los Angeles is still in the throes of a homelessness crisis.

Housing advocates are watching this closely. They argue that ULA’s funds are critically needed – noting the program’s early successes in preventing evictions and starting new housing construction – and worry that any rollback could undermine these gains. Some describe Measure ULA as “our last, best hope” for addressing homelessness through local action, emphasizing that halting it would be a significant setback in a city where tens of thousands remain unhoused. On the other hand, if a pause is narrowly tailored (for example, only for wildfire-related sales) and short-term, the impact on overall revenue might be modest. Mayor Bass has to weigh the trade-off: providing relief in extraordinary cases versus maintaining the revenue flow needed for long-term housing solutions.

Up to the latest statements in 2025, no final decision has been made on pausing Measure ULA, and Mayor Bass has not proposed a permanent repeal or broad suspension. It’s a potential policy adjustment under study. Bass has reaffirmed that her administration’s priority is to get people housed – she recently announced a $1.3 billion budget commitment to homelessness, the largest in L.A.’s history (LA Mayor’s Budget Includes $150M From Measure ULA) – and Measure ULA is a big part of that funding. Any modification to ULA will likely be crafted to minimize harm to affordable housing programs. Observers expect that if the Mayor does seek a pause or exemption, it will come with a plan to backfill lost funds or a strategy to resume full collections once the crisis abates. City Council and voter approval might also be required, injecting political and legal complexity.

In summary, Measure ULA was created to fund desperately needed housing initiatives in Los Angeles, and it has begun to deliver on that promise with new housing units, rent relief, and tenant protections (Measure ULA: “A Necessary Lifeline” - UTLA) (Measure ULA: “A Necessary Lifeline” - UTLA). Mayor Karen Bass, while supportive of ULA’s mission, is grappling with its real-world impacts and has floated the idea of a temporary pause to address specific challenges (like wildfire recovery) (Can Mayor Karen Bass Suspend Measure ULA to Help LA Rebuild?). The debate highlights the tension between maintaining a stable funding source for affordable housing and reacting to economic and humanitarian circumstances. The outcome of this discussion is being closely watched, as it will affect funding for homelessness programs, the pace of affordable housing development, and L.A.’s overall approach to its housing crisis. Any changes Bass pursues will need to carefully balance immediate needs with the long-term goal of housing more Angelenos – the very goal Measure ULA was designed to achieve (Los Angeles, California, Proposition ULA, Tax on $5 Million House Sales Initiative (November 2022)).

Sources:

Fangyuan Hu
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