What Measure ULA’s $1B Milestone Means for Property Owners and Managers
Measure ULA has officially passed $1 billion in revenue. This milestone renews concerns about reduced deal activity, higher transaction costs, and slowed reinvestment.
As debate over exemptions, legal challenges, and a possible 2026 ballot measure continues, the impacts of ULA remain highly relevant to our members.
What You Need to Know
Through November 2025, Measure ULA has generated $1.03B in revenue for the City of Los Angeles, and funds have been directed to housing-focused programs.
While early estimates projected annual revenues between $672M and $1.1B from the 4% tax on property sales over $5M and the 5.5% tax on sales over $10M, those projections were later revised downward, with the measure reaching $1 billion only after nearly three years in effect.
Researchers, including analysts affiliated with UCLA, have argued that ULA has slowed multifamily production and commercial transactions, particularly after a rush of sales before the tax took effect.
Karen Bass has explored temporary pauses and exemptions — including for fire-impacted areas and newer commercial properties — though none have been finalized.
A repeal effort backed by the Howard Jarvis Taxpayers Association is gathering signatures to place a measure on the November 2026 ballot, though it has not yet met required thresholds.
How It Impacts You
For commercial real estate professionals, the $1B milestone doesn’t change the day-to-day reality that Measure ULA continues to shape market behavior:
Fewer transactions, slower repositioning: The added transfer tax cost can deter sales, refinancing strategies, and recapitalizations — making it harder for owners to reposition assets or bring in new capital for improvements.
Ripple effects on property operations: When transactions stall, so do capital upgrades, tenant improvements, and modernization projects that directly affect property managers, contractors, and service providers.
Pressure on valuations and financing: ULA is increasingly factored into underwriting assumptions, which can reduce asset values and complicate financing — especially for larger commercial and multifamily properties.
Uncertainty complicates planning: Ongoing proposals to pause, exempt, amend, or repeal the tax create a moving target for long-term investment decisions and operational planning.
As the City highlights ULA’s revenue success, it’s essential that policymakers also hear from the commercial real estate community about unintended economic consequences, downtown recovery challenges, and the importance of policies that support — not suppress — reinvestment.
Stay Connected
BOMA/GLA will continue monitoring developments around Measure ULA, proposed exemptions, and the potential 2026 ballot challenge — and will keep advocating for balanced policies that recognize the role commercial real estate plays in the long-term economic health of Greater Los Angeles.
Follow BOMA on the Frontline for updates.
