LA City Council forms committee to review Measure ULA

On Wednesday, the Los Angeles City Council voted to create a three-member ad hoc committee to review and make recommendations on possible changes to L.A.’s so-called “Mansion Tax” by April 30, 2026.

The motion was introduced by Council President Marqueece Harris-Dawson and Councilwoman Ysabel Jurado to examine potential changes to Measure ULA, which some critics say could be hurting affordable housing production and may face a legal challenge from the Howard Jarvis Taxpayers Association.

Measure ULA was approved by voters in Los Angeles in 2022. The measure funds housing programs for seniors, people with disabilities and other vulnerable renters by imposing a tax on property sales above $5.3 million, including mansions, apartment buildings and commercial developments.

“I want to be clear that it's the full intention to stay in keeping with the spirit of the voters,” Harris-Dawson said. “There are things in ULA that I frankly think were not in the spirit of the voters, like taxing the building of affordable housing as one example.”

However, some housing advocates warned that altering the measure could have unintended consequences.

“Decisions about this measure could shape Los Angeles for decades,” said Lizet Mendoza, an organizer with the Community Power Collective, during public comment. “Rushing amendments without thorough review could be a mistake and could cost the city millions of dollars.” Mendoza was referring to the April 30 deadline, when the committee is scheduled to return to the council with an analysis and recommendations regarding Measure ULA, unless the council extends the timeline.

Joe Donlin, director of the United to House LA, also raised concerns about the process. “We hope this committee does not exacerbate uncertainty by assuming what it’s going to do in advance based on narratives perpetuated by those whose interests are at play,” Donlin said. He added that “not a single report has been requested to evaluate whether ULA has had any measurable impact on the housing market.”

In January, the council referred proposals to alter Measure ULA back to committees, and those proposals are now expected to be discussed by the new ad hoc committee.

Councilwoman Nithy a Raman, who chairs the Housing and Homelessness Committee and supports Measure ULA, previously sought to amend the measure through a June ballot initiative.

Her proposal would exempt newly constructed multifamily, commercial and mixed-use buildings from the tax for up to 15 years, and exempt properties affected by natural disasters, such as the Palisades Fire, from the tax for up to three years.

Raman also proposed changes that would allow traditional lenders to help finance ULA-supported affordable housing projects and give affordable housing groups the first opportunity to purchase buildings being sold.

Critics of Measure ULA argue the tax has slowed commercial development and property sales and reduced the availability of affordable housing. The Howard Jarvis Taxpayers Association has argued the measure violates both the state constitution and the Los Angeles City Charter. The association is working to qualify a November ballot initiative that would repeal Measure ULA and other real estate transfer taxes higher than 0.11%, according to sources.

In early January, supporters of the measure celebrated reaching $1 billion in revenue generated by the tax, which funds affordable housing development and homelessness prevention programs.