Measure ULA is back at the center of the Los Angeles multifamily conversation ahead of November.

A statewide ballot measure backed by the Howard Jarvis Taxpayers Association has qualified for the November ballot and could sharply limit local transfer taxes across California, including Measure ULA in Los Angeles. At the same time, a separate coalition is pushing a “Mend It, Don’t End It” effort focused on modifying the structure of ULA rather than eliminating it outright.

For owners of larger apartment buildings, the conversation matters because ULA has already become part of transaction underwriting, pricing strategy, and development feasibility throughout the City of LA.

The next several months could affect how buyers and sellers approach larger multifamily transactions moving forward.

The Conversation Around Measure ULA Is Expanding

For much of the past two years, the discussion around Measure ULA was relatively binary: keep the tax in place or repeal it entirely.

That is beginning to shift.

There are now two separate tracks developing simultaneously. The first is the statewide initiative that could limit local transfer taxes broadly across California. The second is a local reform effort aimed at modifying how ULA applies to multifamily and commercial projects while preserving its affordable housing funding goals.

Why Multifamily Owners Are Paying Attention

Measure ULA has already become part of the math on larger apartment transactions in Los Angeles.

Buyers, sellers, and lenders have increasingly had to account for transfer tax exposure when evaluating pricing, refinancing decisions, and long-term hold assumptions on larger assets.

For development projects, the conversation extends even further. Transfer taxes can affect exit assumptions, projected returns, and how developers think about future dispositions years before a project is completed.

The current reform discussion appears focused on that issue directly.

According to the coalition’s April 2026 briefing, proposed changes include:

• a 15-year exemption for newly built multifamily and commercial properties

• a 1% to 2% cap on non-single-family properties after year 15

• expanded flexibility around financing and eligible ULA fund uses

• stronger reporting requirements and performance targets

I have not independently verified every provision in the coalition proposal and owners should review the original briefing directly before relying on any summary interpretation.

The Timing Question May Matter as Much as the Outcome

One of the more important dynamics over the next several months may simply be uncertainty itself.

Even before any vote occurs, buyers and sellers may begin adjusting behavior based on what they believe could happen.

Some owners may accelerate sales if they believe transfer taxes could remain unchanged. Others may delay dispositions if they believe reform or exemptions are possible.

Buyers may also begin underwriting differently if they expect portions of ULA to change, particularly on larger multifamily transactions or development projects.

That does not mean outcomes are predictable. The statewide measure still requires voter approval, and any local reform effort would follow its own political and legal process.

But the uncertainty itself may already begin affecting transaction conversations.

The Development Exemption Proposal Is Especially Important

The proposed 15-year exemption for newly built multifamily projects may become one of the most closely watched pieces of the reform discussion.

Over the past two years, many developers and equity groups have argued that ULA altered exit assumptions for larger multifamily construction projects in Los Angeles.

Whether that argument ultimately changes policy remains uncertain. But the fact that several organizations that originally supported ULA are now discussing exemptions and caps suggests the conversation has evolved beyond simple repeal versus preservation.

For multifamily owners and developers, that distinction is important.

What Owners Should Watch Before November

The most important questions remain practical:

• Will Measure ULA remain unchanged?

• Will multifamily development receive exemptions?

• Will transfer tax exposure on larger apartment sales be reduced?

• Will buyers adjust pricing assumptions before any vote occurs?

• Will transaction timing shift as owners wait for more clarity?

At this stage, none of those outcomes should be assumed.

But Measure ULA continues to influence how larger Los Angeles multifamily assets are being evaluated, and the next several months could shape transaction activity moving into 2027.

Conclusion

Measure ULA remains one of the most important policy variables affecting larger Los Angeles multifamily transactions.

What changed over the past several weeks is not simply the possibility of repeal. It is the emergence of a separate reform conversation focused on exemptions, caps, and modifications to how the tax applies to multifamily development and larger property sales.

For owners evaluating a sale, refinance, development project, or long-term hold strategy, the discussion is worth watching closely heading into November.

If you would like a current read on how buyers are underwriting larger LA multifamily transactions under existing ULA assumptions, our team is happy to share additional market feedback and recent transaction data.