The Los Angeles Housing Department is launching its largest-ever funding round for affordable housing, offering $387 million to developers starting Friday. Most of this funding comes from Measure ULA’s “mansion tax,” which applies to property sales over $5 million and has raised over $784 million since 2023.
According to the Los Angeles Times, the funds will support new construction, housing preservation, and operating assistance. The funding marks a strategic shift from per-unit awards to percentage-based development costs, allowing projects to receive 30% to 100% of total expenses. The application period for this funding round is open until October 20, and funds are available to various organizations, including nonprofit and for-profit developers, community land trusts, and public entities.
The Los Angeles Housing Department administers the ULA tax, which aims to provide a sustainable funding stream for affordable housing and homelessness prevention. The tax has faced criticism for potentially stifling commercial development, but proponents argue it is crucial for addressing the housing crisis.
A report from LAist notes that while the tax is often called a “mansion tax,” only about 46% of the revenue comes from single-family home sales. The rest comes from other real estate transactions, including offices and apartment buildings. Despite criticisms, the tax continues to be a key tool in funding Los Angeles’ housing initiatives.
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