Los Angeles Approved $467 Million for Housing

The City Council authorized new funding for affordable rental construction using revenue from the mansion tax.

Updated on Sept. 22, 2026 in Apartments

Bold vector editorial illustration of structural steel and residential building blocks, representing urban housing development. — The Los Angeles City Council authorized $467 million in funding to accelerate the construction and preservation of affordable housing units citywide. AI Illustration. Upload story photo >

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

The Los Angeles City Council has voted 13-0 to authorize the release of nearly $467 million for the construction and preservation of affordable rental units. This initiative marks the second round of the Homes for LA program, which is largely financed by tax revenue generated from Measure ULA.

Why it matters

This funding is designed to increase the availability of affordable housing across the city by providing grants and loans to developers and non-profits. The effort seeks to address long-standing supply shortages by leveraging proceeds from a transfer tax on high-value property sales.

The funding follows the collection of nearly $1.2 billion through Measure ULA across 1,633 transactions since April 2023. The program utilizes tax rates of 4% and 5.5% on luxury real estate transfers to finance the development pipeline.

The players

Los Angeles City Council

This local legislative body holds the authority to approve city budgets and funding initiatives for public housing programs.

Los Angeles Housing Department

This municipal agency manages the allocation of housing funds and ensures that developers adhere to project requirements.

The details

Administered by the Los Angeles Housing Department, the program allows various organizations to apply for financial support to build new units or preserve existing rental housing. The department is required to provide quarterly usage reports to ensure transparency and track project progress throughout the construction cycle.

April 1, 2023: Measure ULA transfer tax took effect.
April 30, 2026: Total revenue for Measure ULA reached $1.2 billion.
September 22, 2026: City Council authorized the funding notice.
October 2026: The housing department begins executing loan agreements for the first round.
April 2027: Expected timeline for the review and approval of new project awards.

Culture Shift

This program reflects a growing trend of cities using luxury property taxes to address affordable housing crises. It marks a departure from traditional reliance on general funds, moving toward dedicated tax streams designed to create permanent housing solutions.

Residents can expect to see an increase in affordable housing development projects across various districts as the city executes these loans. For those seeking housing, the program aims to bolster the inventory of rental units available in the coming years.

The takeaway

The city is actively using luxury property tax revenue to bridge the gap in its affordable housing stock. Residents should monitor future project announcements to see how these developments will specifically impact their local neighborhoods.

What happens next

The city expects to release the formal notice of funding availability on October 13, 2026, which will open the application process for developers and organizations.