Los Angeles City Council approved a $544.3 million spending plan from Measure ULA, the so-called “mansion tax,” allocating $381 million to affordable housing and $163.3 million to homelessness prevention in the 2026 fiscal year. The decision comes after a legi
The moment of could-have-been landed without ever getting on paper for voters. Los Angeles City Council on Friday approved a plan to spend $544.3 million collected from Measure ULA—the so-called “mansion tax”—a transfer tax that hits Los Angeles property sales above $5.3 million.
Under the plan. the money is set to be doled out during the 2026 fiscal year. making it the largest allocation of Measure ULA funds so far—about 28% higher than last year’s budget. The Council’s breakdown is specific: $381 million toward affordable housing programs and $163.3 million for homelessness prevention programs.
The approval comes just after a legislative challenge threatened to put the measure’s future directly in voters’ hands on the November ballot. That effort had been designed to gut the mansion tax. but a deal struck on Wednesday between state lawmakers and the Howard Jarvis Taxpayers Association keeps Measure ULA intact.
The taxpayers association—an organization that has been fighting Measure ULA since it took effect in 2023—had organized a measure to eliminate the mansion tax. Its proposal would have capped transfer taxes at 0.11%. It also would have required future special tax votes to reach two-thirds voter support rather than a simple majority. and it would have retroactively overturned recent tax votes that failed to hit that threshold.
Measure ULA, which only received 58% support, could have been overturned if the association’s measure had passed.
State lawmakers countered with a bill of their own, one that would have narrowed the tax’s reach. Their approach would have preserved transfer tax rates of up to 5.5% for single-family home sales above $5.3 million—“mansions”—while capping rates at 1.5% for non-mansions. including apartment complexes and commercial buildings. But the bill would only appear on the ballot if the taxpayers association pulled its own measure.
The taxpayers association refused. Instead, it struck a deal with lawmakers to place an amendment on the ballot that raises the threshold for special taxes to two-thirds voter approval, while sparing existing taxes such as Measure ULA.
Measure ULA has been a flashpoint since it passed in 2022. In practice, it levies a 4% transfer tax on L.A. property sales above $5.3 million and a 5.5% tax on sales above $10.6 million.
Supporters say it has worked as intended. raising hundreds of millions of dollars for housing initiatives amid Southern California’s housing crisis. Critics say the effects have gone the other way—discouraging sales and slowing apartment construction by taking a bite out of developers’ profit margins.
The numbers help frame the argument. Over the last three years, Measure ULA has raised more than $1.24 billion. That’s a substantial total for housing efforts, but still well short of initial projections of up to $1 billion per year.
So far, the city’s use of Measure ULA money is measurable. According to the Housing Department. the city has used funding to build 1. 409 affordable housing units. preserve 183 affordable housing units. and provide 39 homeownership loans. It has also provided eviction defense for 14,258 households, rental assistance for 4,488 households, and income support for 1,494 households.
The spending plan approved Friday now moves to Mayor Karen Bass for final approval.
Still, the politics of Measure ULA never really stayed behind Council walls. As the city commits $544.3 million to housing and homelessness prevention for the 2026 fiscal year. the unresolved question lingers for anyone watching whether voters will ultimately demand the tax be altered—if not eliminated—given the fight that almost changed its course.
Los Angeles City Council Measure ULA mansion tax affordable housing homelessness prevention transfer tax Howard Jarvis Taxpayers Association Karen Bass state lawmakers