Los Angeles is putting its first major tranche of Measure ULA dollars to work, steering more than $360 million into affordable housing production, preservation and operations.
On May 1, Mayor Karen Bass signed off on the inaugural Homes for L.A. Notice of Funding Availability, days after City Council approval, marking the first large-scale deployment of funds generated by the voter-backed transfer tax, the city announced in a press release shared with The Real Deal.
ULA adds a 4 percent property transfer tax on all real estate that sells for more than $5.3 million and a 5.5 percent tax on sales over $10.6 million.
The Los Angeles Housing Department is distributing nearly $361 million across 80 projects, expected to serve more than 5,200 units. Most of those residences won’t be new construction, however; instead, the bulk of the program tilts toward keeping existing units online. Of the total, 1,528 units are slated for new development, while 3,713 will be preserved or stabilized.
The funding stack pulls from ULA revenue along with other public sources and is divided into six programs focused on affordable housing production, preservation and operation assistance. City officials are also rolling out social housing for the first time using ULA funds, backing models that emphasize tenant governance, mixed-income developments and permanent affordability.
Under the new framework, the Los Angeles Housing Department can cover up to 100 percent of costs for preservation deals under ULA’s Alternative Models program, which funds non-traditional affordable housing models including community land trusts, tenant-owned cooperatives and other shared equity models to promote long-term affordability and prevent displacement in L.A. LAHD will pay up to 80 percent for new construction in that category.
The goal is to simplify financing and accelerate timelines — a persistent friction point for subsidized housing projects. “We now can move the needle in a meaningful way for Angelenos to have safe, affordable housing available to them,” LAHD General Manager Tiena Johnson Hall said.
Measure ULA has raised roughly $1.1 billion since its implementation in April 2023, TRD previously reported.
— Chris Malone Méndez
Read more
Commercial
Los Angeles
Measure ULA drives developers out of LA
Residential
Los Angeles
LA ranks among top US cities building affordable housing: RentCafe
Politics
Los Angeles
LA affordable developers could see $360M from ULA tax haul