Los Angeles City Council Approves Record $466.6 Million for Affordable Housing Projects

The Los Angeles City Council has unanimously approved a record $466.6 million in funding for affordable housing initiatives, primarily backed by Measure ULA, the city's "mansion tax." This substantial allocation, the largest in the city housing department's history, will be distributed to developers, nonprofits, and land trusts for the construction and renovation of affordable housing projects. Applications for these funds open on October 13 and close on December 4, with recipients expected to be announced in February.

Approximately 70% of this budget originates from Measure ULA, which imposes a 4% or 5.5% tax on Los Angeles property sales exceeding $5.4 million. The spending plan, awaiting Mayor Karen Bass' approval, includes a new amendment requiring quarterly updates from the housing department on fund utilization, project timelines, and any challenges. This oversight aims to ensure accountability and effective deployment of resources.

This funding is anticipated to stimulate multifamily development, which has seen a slowdown due to profitability challenges, partly attributed by some developers to Measure ULA's impact on unit sale prices. Last year, the city awarded $360.9 million to 80 projects, resulting in 1,288 new affordable units and the preservation of 3,713 units. This year's pool includes $123 million for multifamily projects with 40 or more units and $115 million for those seeking low-income housing tax credits, offering significant opportunities for developers to advance critical housing solutions.