New Thresholds Announced for Measure ULA: What Los Angeles Property Owners Need to Know
Introduction
Measure ULA, branded as the "Homelessness & Housing Solutions Tax," was passed by Los Angeles voters with the intent to generate revenue for addressing homelessness through a high-value real estate transfer tax. While the goal is noble, the approach continues to spark debate. Frontgate strongly supports helping the unhoused population, but we believe the execution of Measure ULA is fundamentally flawed—an approach that leans more toward redistribution than resolution.
This July, a new update to Measure ULA goes into effect, modifying the tax thresholds. Here’s what’s changing and why it matters.
What Is Measure ULA?
Measure ULA imposes an additional transfer tax on real estate transactions in Los Angeles above certain price points. It was approved by voters in 2022 and went into effect on April 1, 2023. The revenues were intended to help combat homelessness and fund affordable housing initiatives.
- 4% on property sales above $5 million and below $10 million
- 5.5% on property sales above $10 million
This is in addition to the standard City of Los Angeles base transfer tax rate of 0.45%.
Updated Thresholds Effective July 1, 2025
As of July 1, 2025, the City has revised the valuation brackets:
- 4% tax on sales from $5.3 million to $10.6 million
- 5.5% tax on sales above $10.6 million
- The 0.45% city base tax remains unchanged and applies to all real estate sales
Comparison: Original vs. Updated ULA Structure
| Value of Property Conveyed | Original ULA Rate | New ULA Rate (Effective July 1, 2025) |
|---|---|---|
| $100 - $5,300,000 | 0% | 0% |
| $5,300,000 - $10,600,000 | 4% | 4% |
| Over $10,600,000 | 5.5% | 5.5% |
Real-World Tax Impact Examples
Example 1: $6,000,000 Sale
- ULA Tax: $240,000
- Base City Tax: $27,000
- Total Transfer Tax: $267,000
Example 2: $12,000,000 Sale
- ULA Tax: $660,000
- Base City Tax: $54,000
- Total Transfer Tax: $714,000
Frontgate's Take on Measure ULA
We believe this tax is a regressive and short-sighted solution. It penalizes productivity while offering little accountability or measurable results. Instead, we encourage leadership to pursue transparent, performance-driven strategies.
Has It Worked? Where Has the Money Gone?
While Measure ULA has raised about $150 million in its first year, the results have been unclear. Distribution has been slow and lacking transparency, and homelessness continues to rise.
Economic Fallout: What Isn’t Being Talked About
Measure ULA has negatively impacted:
- Realtors and brokers
- Escrow officers and contractors
- Interior designers, movers, stagers, and vendors
The tax has likely cost LA tens of millions in unrealized transfer fees and local business income.
Investor and Developer Sentiment Post-ULA
Developers and investors are shifting to less restrictive markets. Many projects have been put on hold, which worsens LA’s housing shortage.
Alternative Homelessness Solutions We Support
- Mental health and addiction recovery programs
- Job training and workforce integration
- Repurposing city-owned land for shelter use
- Public-private partnerships with accountability
A Step in the Right Direction—But Not the Full Answer
Adjusting thresholds is a technical correction, not a fix. True progress requires coordinated efforts between the public and private sectors—with real results, not just revenue.
Conclusion
Measure ULA’s updated thresholds offer minor relief. But the core issue remains: taxing progress to fund unclear outcomes. We stand for compassionate and economically sound solutions.
FAQs About Measure ULA and Its Impact
- What is the goal of Measure ULA? To fund homelessness and affordable housing via real estate taxes.
- Who pays the ULA tax? Sellers of properties over the updated value thresholds in Los Angeles.
- Has it helped the homeless? Minimal progress has been seen so far.
- What are the alternatives? Public-private partnerships, mental health programs, and accountability-based models.
