Los Angeles is moving forward with a $466.6 million affordable housing funding round, creating the city’s largest pool yet for projects that build, preserve or repair lower-cost rental homes. The Los Angeles City Council approved the funding this week through the city’s Homes for LA program. The program brings several housing funding sources into a single application process, allowing developers, nonprofit groups and community land trusts to compete for loans and grants for qualifying projects.
Applications are expected to open on Oct. 13 and close in early December. City staff will review and score proposals over the following months, with final funding recommendations expected to reach the council in spring 2027.
How the funding is expected to be used
The $466.6 million package is divided among several types of projects. According to Los Angeles Times, up to $123 million is set aside for larger multifamily developments with at least 40 units, while $115 million is available for projects using low-income housing tax credits.
Other funding categories include:
- $104 million for alternative affordable-housing development models.
- $38 million for stabilizing existing affordable properties.
- $32 million for acquiring and rehabilitating rental housing.
- $27 million for preserving currently affordable homes.
- $25 million for properties at risk of financial distress.
The current round is larger than the approximately $387 million available through the previous Homes for LA round, according to the Los Angeles Times.
What happens next
Applicants will submit project plans and financial details during the fall. Housing officials will then evaluate the proposals before making funding recommendations. The city’s prior funding round, approved in May, backed 80 projects involving more than 5,000 affordable homes through a mix of new construction and preservation. That included 1,528 planned new units and 3,713 homes to be preserved, according to the Daily News.
Much of the money for the new round comes from Measure ULA, a tax on certain high-value real-estate sales. The measure took effect in April 2023 and had generated nearly $1.2 billion from 1,633 transactions as of April 30, according to the Daily News. The newly approved pool does not mean construction begins immediately. It launches the application process that will determine which projects receive city support — and, ultimately, how many affordable rental homes can be built, rehabilitated or kept available for Angelenos.
