Measure ULA Boosts Los Angeles Affordable Housing Funds

The Los Angeles Housing Department is releasing $387M to support affordable housing, its largest-ever funding round.
Most of the money comes from Measure ULA, the “mansion tax” on property sales above $5M, which has raised $784M since 2023.
Funding is expected to support around 450 affordable units, highlighting the challenge of high development costs in L.A.
The new system allocates funds as a percentage of development costs rather than per-unit, allowing ULA money to cover 30% to 100% of project expenses.

Key Takeaways

A Record Allocation

According to The Real Deal, the Los Angeles Housing Department is preparing its biggest funding release ever, with $387M set aside for affordable multifamily housing. Housing Department General Manager Tiena Johnson Hall said the funding pool dwarfs the city’s typical $50M to $75M allocations.

Powered by Measure ULA

The bulk of the funding—$316M—comes from Measure ULA, the real estate transfer tax on properties selling for more than $5M. Another $71M is sourced from state and federal programs. Since voters approved the tax in 2022, it has raised more than $784M, though legal challenges slowed distribution until recently.

Last year, the city approved $150M in ULA spending, followed by $425M in July. This new round marks the largest single distribution since the measure took effect.

The Impact

Despite the record-setting pool, the effect may be modest in the face of soaring development costs. At nearly $900,000 per unit, the new funding may support only about 450 units—a small fraction of what’s needed to ease the city’s chronic housing shortage.

The funds will be available to a wide range of groups, including nonprofit and for-profit developers, community land trusts, limited-equity housing co-ops, and public entities. In addition to new construction, money will also support preservation, adaptive reuse, and operations assistance.

A New Funding Formula

In a shift from past practice, the city will now distribute funds based on a percentage of project costs rather than the number of units in a development. This allows the city to better account for rising construction expenses.

Depending on the project, ULA funds could cover 30% to 100% of costs, Johnson Hall said. Applications open Friday and will remain open until October 20.

Why It Matters

Measure ULA has provided Los Angeles with a steady, long-term revenue source for tackling housing affordability. The latest distribution reflects both the promise and the limitations of the policy: it represents a significant financial commitment, but one that may only modestly move the needle against the city’s vast housing needs.