Los Angeles City Council Approves $467 Million Affordable Housing Fund, $324 Million from Measure ULA

The Los Angeles City Council recently voted 13-0 to open a second $467 million funding round for affordable housing, with $324 million directly from Measure ULA, the city's high-value property transfer tax. This new allocation, part of the Homes for L.A. program, is approximately 20% larger than the first round's $393.9 million.

Applications for developers, land trusts, and nonprofits will open on October 13. While Measure ULA has generated nearly $1.4 billion since its April 2023 inception, its impact on the market is debated. A study by Harvard, UC Irvine, and UC San Diego researchers found a 50% drop in high-value property sales in Los Angeles, with each ULA dollar offset by about 80 cents in lost general fund property tax revenue.

Funds are earmarked for multifamily construction, alternative models prioritizing community land trusts, operating assistance for existing buildings, and preservation of affordable housing. This round also includes $88.9 million from the county's Measure A sales tax and $27 million from the city's affordable housing linkage fee. New quarterly reporting requirements will track funding and project progress, ensuring accountability for these significant investments. Developers should note the application deadlines: sponsor applications by November 13 and project applications by December 4.