Los Angeles is preparing to make approximately $467 million available for affordable housing construction, preservation, and stabilization through the second round of its Homes for LA funding program.
About $324 million of that total comes from Measure ULA, the city’s additional transfer tax on high-value real estate transactions.
The Los Angeles Housing Department expects its application portal to open October 13, 2026, although that date is tentative.
For property owners and investors, the announcement shows where a substantial portion of Measure ULA revenue is going and how the city is attempting to finance housing when construction and borrowing remain expensive.
What is the new Homes for LA funding round?
Homes for LA is a competitive funding program administered by the Los Angeles Housing Department.
The current round makes approximately $466.6 million available to support affordable housing development and preserve existing affordable properties.
Funding availability is not the same as completed housing. The announcement does not mean all the money has been spent, that every applicant will receive an award, or that funded projects will immediately begin construction.
Applicants must satisfy program requirements, compete for funding, and move through underwriting and approval. The path from funding authorization to occupied housing can take years.
Where does the $467 million come from?
Measure ULA accounts for approximately $324 million. The remaining resources come from other public funding sources, including affordable housing fees and regional housing programs.
Measure ULA was approved by Los Angeles voters in 2022 and began generating applicable property-transfer-tax revenue in April 2023.
Its purpose is to finance affordable housing and homelessness-prevention programs within the City of Los Angeles. This funding round illustrates how some of those revenues are being allocated.
What types of projects can receive funding?
The department identifies seven funding programs. Three focus on construction, three focus on preserving existing affordable housing, and one provides operating assistance intended to stabilize affordable properties.
The construction programs include conventional multifamily development and alternative ownership or governance models.
Preservation programs can address buildings where affordability is at risk, rehabilitation is necessary, or financial distress threatens operations.
These are different problems. A new building needs development capital. An aging building may need rehabilitation financing. An existing property with insufficient operating income may need a different intervention.
Why does preservation matter as much as construction?
Housing conversations often center on how many new apartments a city can build. That is important, but only part of the equation.
Los Angeles also has existing affordable properties facing rising insurance, maintenance, repair, and financing costs.
If those buildings deteriorate or become financially unstable, the city risks losing homes already serving lower-income residents.
Preserving existing affordable housing can sometimes be more efficient than replacing those units with new construction. That does not mean preservation is always the better investment. It means both approaches deserve scrutiny.
How does Measure ULA affect property sales?
Measure ULA imposes an additional transfer tax on qualifying transactions within the City of Los Angeles.
For transactions closing after June 30, 2026, the published thresholds are more than $5.4 million but less than $10.9 million at 4%, and $10.9 million or more at 5.5%. The city also imposes its existing base transfer tax, currently 0.45%.
Qualifying apartment buildings and commercial properties can be affected, not only expensive single-family houses. That is why describing Measure ULA exclusively as a mansion tax can be misleading.
Exemptions and other transaction-specific rules matter, so sellers should verify the applicable treatment before relying on a calculation.
What does the tax mean for a seller?
Consider a hypothetical $6 million property sale. Assuming the transaction is taxable and no exemption applies, the additional 4% ULA component would equal $240,000.
The separate 0.45% city base transfer tax would add $27,000. Those two city-level components total approximately $267,000, before other applicable transaction expenses and taxes.
A seller should not focus only on the gross sale price. Net proceeds after taxes, brokerage compensation, closing costs, debt repayment, and other obligations determine what the seller actually receives.
Those calculations should be completed before setting a pricing strategy.
Does Measure ULA affect multifamily investment?
Yes, particularly at higher transaction values. An investor buying above the applicable threshold should consider how the tax could affect a future sale and the projected return.
A five-year holding period may require different exit-cost assumptions from a transaction below the threshold.
The tax can also influence how buyers evaluate redevelopment opportunities or properties requiring major capital improvements.
But it would be too simplistic to attribute every investment decision to Measure ULA. Financing, rental income, insurance, property taxes, tenant regulations, construction costs, and market conditions also matter.
Is Measure ULA helping or hurting housing development?
There are competing perspectives. Supporters argue the tax creates dedicated resources for affordable housing and tenant stability. The new funding round is a concrete example of revenue being allocated.
Critics argue the additional transaction cost can discourage some high-value sales or make certain projects harder to finance.
I would separate two questions: Is the tax generating money for housing programs? Yes. Does that automatically establish that its overall economic effect is positive or negative? No.
A complete assessment needs to examine both program outcomes and effects on transactions and development.
Who can apply for the new funding?
This is not a general grant for homeowners remodeling a house or building a backyard ADU.
Homes for LA is structured around qualifying affordable housing projects and eligible sponsors. Depending on the program, applicants may include experienced affordable housing developers, nonprofits, community land trusts, and other qualifying entities.
Eligibility, underwriting, affordability requirements, and project-readiness standards vary. Applicants should review official term sheets and regulations.
The portal is tentatively scheduled to open October 13. Published reporting identifies November 13 as the sponsor application deadline and December 4 as the project application deadline. Verify final dates directly with LAHD.
What should property owners watch next?
I would focus on three developments: how much funding goes to new construction versus preservation, how quickly awards turn into construction, and what measurable results the city produces.
The City Council has called for quarterly reporting on implementation, including awards, expenditures, progress, and delays.
For investors, results could also show where affordable housing development is becoming more financially feasible.
An announced funding total is a starting point, not the final measure of success.
Frequently asked questions
How much money is available? Approximately $467 million, including about $324 million from Measure ULA.
When do applications open? Tentatively October 13, 2026, subject to confirmation by LAHD.
Is the funding only for new apartments? No. Construction, preservation, and operating assistance are included.
Does Measure ULA apply to every sale? No. It applies to qualifying City of Los Angeles transfers above the applicable thresholds, subject to exemptions.
Does the city tax apply in Beverly Hills or Santa Monica? Not automatically. Those are separate municipalities with their own applicable rules.
Can a homeowner use this for an ADU? This round is not a general-purpose homeowner ADU grant.
Paul's take
This round gives us another opportunity to evaluate Measure ULA based on actual results. The city is allocating substantial money, but the practical questions are which projects receive it, how many units are built or preserved, and how long it takes.
For property owners and investors, the tax itself also deserves attention. A transaction can look attractive based on gross sale price while producing a very different result after taxes and costs.
Understanding both sides of the equation is essential.
Talk with Paul Adams II
If you are considering selling or investing in Los Angeles multifamily or commercial property, I can help you evaluate comparable sales, transaction costs, income potential, and the factors affecting your property’s market position.