Los Angeles Approved $467 Million for New Housing

Los Angeles is funding affordable housing construction using proceeds from the city’s mansion tax.

Updated on Sept. 22, 2026 in Apartments

Isometric editorial illustration of multi-unit apartment blocks, representing urban housing development funding in Los Angeles. — The Los Angeles City Council approved a $467 million funding package to boost the construction and preservation of affordable rental housing units. AI Illustration. Upload story photo >

Live Poll

Should city tax revenue from luxury property sales be prioritized for building affordable housing?

The Los Angeles City Council has authorized a $467 million funding package to support the construction and preservation of affordable rental units. This initiative, part of the second round of the Homes for LA program, provides grants and loans to developers and non-profits.

Why it matters

The program relies on revenue from Measure ULA, a local tax on high-value property sales that has raised nearly $1.2 billion since 2023. This capital injection is designed to expand the city's stock of affordable housing units following an initial round that supported over 5,000 homes.

The city has authorized $467 million in new funding to support housing, following an initial round of $361 million that backed 5,241 units. To date, Measure ULA has generated $1.2 billion through 1,633 real estate transactions since taking effect in April 2023.

The players

Los Angeles City Council

The local legislative body that manages municipal policy and authorizes city spending on public programs.

Los Angeles Housing Department

The city agency responsible for overseeing affordable housing programs and distributing construction grants.

The details

The Los Angeles Housing Department will administer these funds, allowing qualified developers and non-profits to apply for project grants and loans. The department is mandated to track all project progress and provide quarterly reports on how the capital is utilized. This round of funding aims to build upon the momentum of the first cycle, which saw 80 distinct projects receive financial support earlier this year.

April 1, 2023: Measure ULA officially took effect.
April 30, 2026: Total Measure ULA revenue reached $1.2 billion.
September 22, 2026: The Los Angeles City Council voted 13-0 to authorize the new funding.
October 2026: The department expects to begin executing loan agreements for units.
April 2027: The city expects to complete the review and approval of all project awards.

Money Landscape

This move marks the second major deployment of funds under the Homes for LA program, which is fueled by the city's mansion tax. The initiative continues the city's policy cycle of funneling high-end real estate transaction taxes directly into affordable housing projects.

While this program targets project developers rather than individual renters, the initiative aims to increase the supply of affordable units in the city. Households seeking affordable housing should monitor the city’s progress for future updates on unit availability and development timelines.

The takeaway

This $467 million allocation highlights the city's ongoing reliance on transfer taxes to finance public housing development. Renters can track the success of these initiatives by following the quarterly reports released by the Los Angeles Housing Department.