The Los Angeles City Council has given the green light to a historic $466.6 million investment in affordable housing, marking the largest municipal commitment of its kind in the city's history. The unanimous vote on September 23 clears the way for a broad expansion of housing options across the region, and the measure now heads to Mayor Karen Bass for final approval.
This funding surge comes at a critical time. Housing costs have been squeezing families from Boyle Heights to Koreatown, and the city's rental market remains one of the most expensive in the nation. Tiena Johnson Hall, director of the LA City Department of Housing, called the investment a "game-changer" that will allow the department to "expand housing supply and stabilize the current market."
The $466.6 million package easily surpasses the $387 million allocated in previous cycles, setting a new benchmark for local housing policy. For developers, this is a welcome relief after years of struggling to make multifamily projects pencil out, especially as property values in the county have dropped nearly 30% over the last five years.
Where the money comes from
Roughly 70% of the funds are generated by Measure ULA, a tax on real estate transactions above $5.4 million. Since its adoption in 2023, the measure has raised over $1.3 billion. Councilmember Ysabel Jurado, who chairs the new Homelessness and Health Committee, emphasized that these revenues translate "popular will into concrete housing solutions for older adults and individuals with disabilities," with full transparency in how the money is spent.
The allocations target different segments of the housing crisis: $123 million for multifamily projects with 40 or more units, $115 million for low-income tax credit initiatives, $104 million for innovative construction models, $38 million to stabilize existing units, $32 million for property acquisition and rehabilitation, and $27 million to preserve properties already in circulation. Councilmember Imelda Padilla stressed the importance of quarterly reports to audit the execution of these projects, ensuring that the city maintains rigorous oversight.
Call for proposals
Developers and community organizations can submit proposals from October 13 through December 4. The city expects to announce selected projects in February. In the previous fiscal year, $360.9 million was distributed across 80 projects, creating 1,288 new homes and preserving 3,713 existing units in areas like downtown Los Angeles and Koreatown. This year's call aims to surpass those numbers significantly.
Interested entities must meet strict quality standards, and the competitive process will evaluate each proposal's viability and community impact. The city is particularly interested in projects that serve vulnerable populations, including seniors and people with disabilities.
Measure ULA has faced legal challenges in the past, but those concerns have largely faded, giving developers a more stable outlook for long-term investments. The tax has proven to be a reliable revenue stream, and its continued success is crucial for the city's housing goals.
For renters and families across Los Angeles, this funding represents a tangible step toward more affordable options. As the city grapples with a persistent affordability crisis, this investment signals a renewed commitment to ensuring that all Angelenos have access to safe, dignified housing. The application window is a key opportunity for developers to contribute to that vision.
For more on housing trends in the region, check out our analysis of renters' options as costs continue to climb. And for a look at how the city is addressing other challenges, see our report on wildfire recovery gaps.
