The November 3 ballot and LA condos: Measure ULA, Prop TE, Prop 43, Prop 1, Prop 37

If you have been asking whether Measure ULA is on the ballot this fall, the short answer is no. The measure ULA ballot fight that was headed for November, a statewide initiative to repeal the tax, was withdrawn in June. What is on the November 3 ballot is a set of narrower city and state measures that touch how LA condos are sold and bought: a Palisades Fire exemption from ULA, a new two-thirds vote rule for citizen-proposed local taxes, a housing bond and a new-home loan program. Here is what each one says, read from the official analyses. We do not predict results.

What happened to the measure that would have repealed ULA?

The Howard Jarvis Taxpayers Association had qualified a statewide initiative that would have eliminated Measure ULA and similar local transfer taxes. On June 25, 2026, just before the deadline to pull qualified measures, the association agreed to withdraw it, LAist reported. In exchange, the Legislature placed its own constitutional amendment on the ballot, which became Proposition 43. The Secretary of State's list of qualified measures for November no longer includes the repeal initiative.

So ULA, as it stands, is not up for a vote. According to the City's Chief Legislative Analyst, writing in the November voter pamphlet, ULA adds a 4 percent tax on sales over $5.4 million and 5.5 percent on sales of $10.9 million or more, on top of the City's base documentary transfer tax of 0.45 percent. Those thresholds adjust each year with inflation. For a condo seller, that means a unit selling just over the line pays the ULA rate on the full price, not only on the amount above it, which is why sellers near the threshold pay close attention to it.

Most LA condos sell well below $5.4 million. The ones that do not tend to be penthouses and large units in towers on the Wilshire Corridor, in Century City and along the coast. If you own one, our sister site has a plain-English explainer on what ULA means for LA sellers and a transfer tax calculator for running a rough number.

City of Los Angeles Proposition TE: a ULA exemption for Palisades Fire properties

Proposition TE is the only ULA measure on the City ballot. According to the City's impartial summary, it would exempt the sale of a residential property that was damaged or destroyed in the Palisades Fire from the ULA tax, if:

• the damage or destruction is verified by the Department of Building and Safety;
• the sale takes place between January 7, 2025 and January 6, 2030; and
• the seller is the owner of record on the date the fire began.

It is a one-time exemption, and owners who already paid ULA on a qualifying sale could apply to the Director of Finance for a refund. The City Administrative Officer estimates the measure would reduce ULA revenue by $35 million to $66 million through January 2030, and notes that it does not affect the City's General Fund. It passes with a simple majority.

For condo owners, the reach is narrow. It applies only within the City of Los Angeles, only to residential property damaged or destroyed in that fire, and only to sales large enough to trigger ULA in the first place. A residential unit in a damaged Pacific Palisades building could qualify if it meets each condition; most condo sales elsewhere in the city are unaffected.

Proposition 43: a two-thirds vote for new citizen-proposed local special taxes

Proposition 43 is a legislative constitutional amendment. The Legislative Analyst's Office describes the change this way: special taxes, meaning local taxes earmarked for a specific purpose, already need a two-thirds vote when a city or county puts them on the ballot. Court decisions have allowed special taxes proposed by voters through petition to pass with a simple majority, which is how ULA passed in 2022 with about 58 percent. Under Prop 43, beginning January 1, 2027, any new, increased or extended local special tax proposed by voters would need two-thirds.

What it does not do matters as much:

• It does not repeal ULA or any tax already in place. The LAO describes it as applying to new, increased or extended taxes from 2027, and LAist reported that the June deal leaves existing transfer taxes untouched.
• It does not change general taxes, which still pass with a majority.
• It does not change Proposition 13 or anyone's current property tax bill.

The LAO's fiscal estimate is that local tax revenue could be lower in the future than it otherwise would be, by an amount it calls unknown. For LA condos, the practical effect would show up later: a future citizen initiative to raise, extend or create a transfer tax, a parcel tax or another special tax would face a higher bar. A measure that only lowers a tax is not a tax increase and is not covered.

Proposition 1: an $11.25 billion housing bond

Proposition 1 would let the state sell $11.25 billion in general obligation bonds. According to the LAO, $10 billion would fund state housing programs and $1.25 billion would fund the state's veterans home loan program, which the LAO notes veterans generally use to buy single-family homes, condominiums, farms and mobile homes. Within the $10 billion:

• $7.2 billion for affordable multifamily rental housing;
• $1.1 billion for homeownership programs for low- and moderate-income households, including first-time buyer assistance loans that generally are not repaid until the home is sold or paid off;
• smaller amounts for infrastructure, farmworker, student, tribal and pilot programs.

The LAO estimates a General Fund cost of $500 million to $600 million a year for about 25 years to repay the $10 billion bond. The veterans portion is repaid by the veterans' own loan payments. For the condo market, the most direct link is buyer assistance: more first-time and veteran buyers able to finance an entry-level condo. As always with assistance programs, the building usually needs to meet the lender's project requirements, which is where warrantability comes in.

Proposition 37: a second-mortgage program for buyers of new homes

Proposition 37 is an initiative statute. According to the LAO, it would let the California Housing Finance Agency sell up to $25 billion in revenue bonds to fund a "middle-class homeownership loan" covering up to 17 percent of a home's price, with the buyer putting down at least 3 percent. Buyers' payments would repay the bonds, so the LAO finds no direct state or local cost.

The conditions are what make it relevant to new construction condos:

• the buyer must be the first purchaser of the home, so it applies to newly built units, not resales;
• the price cannot exceed certain limits;
• household income can be no more than double the typical income in the area.

Prop 37 also creates a "qualified builder option." Developers who choose it must meet higher labor standards and, in exchange, are subject to different construction defect rules that the LAO says generally give builders more flexibility. Construction defect claims are often brought by a condo association after a building is turned over, so a buyer in a new building financed this way may want to know which option the developer chose and what it means for the association. That is a question for a real estate attorney once the final rules are published.

What owners, buyers and sellers can do before and after November 3

• Sellers near the ULA line: nothing on this ballot changes the rate or threshold for an ordinary sale. Prop TE matters only for qualifying Palisades Fire properties. Tyler's pre-sale checklist covers the rest of what to line up, and our selling guide and closing cost guide show where transfer taxes sit among seller costs.
• Buyers of new construction: if Prop 37 passes, the program still has to be set up by CalHFA before loans exist. Ask the developer and your lender rather than assuming it is available on a given unit.
• Owners following the tax fight: results are not final until counties certify them, which takes several weeks after election day. We will follow up once the Secretary of State certifies the statewide results and the City certifies Prop TE.

This post describes what each measure says according to the official analyses. It is general information, not tax or legal advice; for a specific sale, talk with your tax advisor or a real estate attorney. If you want the HOA side of what changes in 2027, see the new HOA laws signed this fall.

Common questions

Is Measure ULA on the November 2026 ballot?

No. The statewide initiative that would have repealed ULA and similar taxes was withdrawn in June 2026 as part of a deal in Sacramento. The City of Los Angeles ballot does include Proposition TE, a narrow exemption from ULA for homes damaged or destroyed in the Palisades Fire. ULA's rates and thresholds are otherwise unchanged.

Would Prop 43 repeal Measure ULA?

No. According to the Legislative Analyst, Prop 43 applies beginning January 1, 2027 to new, increased or extended local special taxes proposed by voters, requiring a two-thirds vote for those. It does not reach a tax already in place, and LAist reported that the underlying deal leaves existing transfer taxes untouched.

What are the current Measure ULA rates and thresholds?

The City's Chief Legislative Analyst, in the November 2026 voter pamphlet, lists ULA at 4 percent on sales over $5.4 million and 5.5 percent on sales of $10.9 million or more. The thresholds adjust each year with inflation. This is on top of the City's base documentary transfer tax of 0.45 percent.

This article is general information, not legal, tax, insurance or lending advice. Laws and bill statuses change, and how a rule applies depends on the building and its governing documents. Confirm anything that affects a decision with your association’s counsel, a CPA, an insurance broker or your lender. Building figures are from the Condos of LA database.