July 1, 2026
Today, the Los Angeles City Council passed program changes advanced by the Ad Hoc Committee on Measure ULA and declined to place a measure amending the program on the November 2026 ballot.
The most substantial change was a tax credit program for multifamily housing sold within ten years of construction (amended upwards from seven years). Multi-family and mixed-use housing built with prevailing wage labor and including affordable housing will have the opportunity to lower or even remove the ULA tax entirely, depending on the level of benefits.
“The city council looked at the research, looked at the broad goals of Measure ULA, and chose a path that recognized the voters’ goals of creating affordable housing and good jobs while avoiding an expensive ballot measure,” said Joe Donlin, director of United to House LA. “After a year of wild assertions and destructive demands, it’s refreshing to see the City Council recognize that ULA was built to be improved, and that its programs can be refined even as the market continues to adjust to new regulations.”
Research from BAE Economics that analyzed developers’ pro forma statements showed that Measure ULA’s effect on development overall was swamped by interest rates and other factors, but a small slice of multifamily housing that was built for sale in less than eight years could be affected by it.
Other studies have been advanced by the real estate lobby to argue that ULA has broader effects on the real estate market, but these have not held up under reanalysis.