What is taxed
The City already taxes every sale of real property at $2.25 per $500 of value, about 0.45%. Measure ULA, which 58% of City voters approved in November 2022, added a second tax, the “Homelessness and Housing Solutions Tax,” on sales from April 1, 2023:
- 4% of the price on sales above the lower threshold and below the upper one;
- 5.5% on sales at or above the upper threshold.
The thresholds started at $5 million and $10 million and are adjusted each year for inflation. For sales closing after June 30, 2026, the Office of Finance sets them at $5.4 million and $10.9 million. The tax applies to the whole price, not just the part above the threshold, and some buyers, including qualified affordable-housing organizations, are exempt.
Where the money goes by law
All of the tax goes into the House LA Fund, a special trust fund. Its money may be used only for the program the measure set out; interest stays in the fund, and money not spent in a year carries over rather than going to the City's Reserve Fund.
The measure also fixes how the fund is divided. No more than 8% a year may go to administration, including tax collection and the Citizens Oversight Committee, and at least 92% goes to programs. Of the program money, 70% is for the Affordable Housing Program (building, rehabilitating and preserving affordable housing) and, as the Housing Department describes it, 30% for the Homelessness Prevention Program, which includes short-term emergency assistance for tenants, income support for rent-burdened seniors and people with disabilities, and eviction defense.
The Los Angeles Housing Department administers the fund and each year prepares a three-year expenditure plan by July 1.
Can it change?
The Council may amend the program, but only in ways that further the measure's stated purposes; it cannot raise the tax without voter approval, and the Citizens Oversight Committee reviews proposed amendments first. If the committee finds an amendment inconsistent with those purposes, the Council must adopt written findings to proceed.
In the City budget
The FY2026-27 adopted budget lists $515.7 million in House LA Fund receipts (Exhibit B). The Measure ULA page shows tax collected by month and council district and what the fund has spent, and the House LA Fund page shows the fund's budget, spending and commitments from the Controller's records.