The Los Angeles City Council has unanimously authorized a new Notice of Funding Availability that will deploy $466.6 million for affordable housing construction and rehabilitation across the city. The funding package, which still requires approval by Mayor Karen Bass, represents the largest pool of housing resources ever assembled by the city’s housing department. Under the program, capital will be offered to developers, nonprofit organizations and community land trusts through a mix of grants and loans dedicated to long-term affordability.
The new funding round is being capitalized largely by revenues from Measure ULA, the transfer tax on higher-value properties that city voters approved in 2022 and that has since been dubbed the mansion tax. City officials are positioning this Notice of Funding Availability as the second phase of the Homes for LA initiative, which is intended to accelerate the development pipeline for income-restricted units and preserve existing affordable housing stock.
The first Homes for LA funding round was awarded in April and, according to MyNewsLA.com, directed nearly $361 million to a portfolio of 80 projects citywide. Those projects are expected to support 5,241 affordable units, underscoring the scale at which the city is attempting to address housing costs and supply constraints. The newly approved NOFA is designed to build on that earlier tranche of funding, using a similar grants-and-loans structure to reach a broader range of sponsors and project types within the affordable segment.
Under the timeline released by city officials, the Los Angeles Housing Department plans to publish the NOFA on October 13, opening the application window for prospective borrowers and grantees. Interested developers, nonprofit sponsors and land trust entities will have until December 4 to submit proposals detailing their project plans, affordability levels and financing needs.
Following the application deadline, the housing department will evaluate submissions and is expected to announce selected recipients in February 2027. Those awards will then move to the City Council for review and formal approval, with that final step targeted for April 2027. The staged review process is meant to ensure both program compliance and alignment with the city’s broader affordable housing strategy, while also giving policymakers visibility into the pipeline of projects that could begin moving toward closing once awards are finalized.
For the multifamily market, this record-sized pool of funds signals sustained municipal support for income-restricted rental housing in Los Angeles. By combining grant dollars with loan capital and tying the program to ongoing Measure ULA revenues, the city is seeking to create a repeatable framework that can help close funding gaps on new and existing affordable projects and provide a clearer path to execution for sponsors active in the sector.
