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

The Los Angeles City Council recently approved a $467 million funding round for affordable housing initiatives, with a significant portion, $324 million, derived from Measure ULA, the city's high-value property transfer tax. This second round of the Homes for L.A. program, which opens to developers on October 13, represents a 20% increase over the initial $393.9 million authorized last year. Funds are allocated across various programs, including $123.5 million for multifamily construction paired with low-income housing tax credits, $104.1 million for new construction prioritizing community land trusts, and allocations for operating assistance and preservation of existing affordable buildings.

Additionally, this round incorporates $88.9 million from the county’s Measure A sales tax and $27 million from the city’s affordable housing linkage fee. To enhance oversight, an amendment requires quarterly reports on funding, project progress, and timelines. While proponents like Councilmember Ysabel Jurado and United to House L.A. celebrate the program's success, critics such as Mott Smith of the Council of Infill Builders argue it's premature to declare victory, citing a 50% drop in high-value property sales and an estimated 80-cent loss in general fund property tax revenue for every dollar of ULA revenue. Measure ULA has generated nearly $1.4 billion since its April 2023 implementation. Developers interested in the second round must submit sponsor applications by November 13 and project applications by December 4.