Karen Bass seeks council approval of $360-million allocation for affordable housing

Los Angeles Mayor Karen Bass is seeking City Council approval for a $360 million allocation to fund affordable housing development and preservation across the city.

The proposed funding would support 80 projects, including construction of 1,528 new affordable units and repairs to more than 2,500 existing affordable housing units that require maintenance work.

The funding comes primarily from Los Angeles' United to House L.A. tax, commonly known as the "mansion tax," which was approved by voters in 2022.

The tax imposes a 4% levy on property sales between $5.3 million and $10.6 million, and 5.5% on sales exceeding that threshold.

Since its implementation, the ULA tax has generated more than $1.1 billion in revenue through over 1,500 real estate transactions, though much of the funding has remained unspent due to ongoing legal challenges threatening to overturn the tax.

For California property developers and housing advocates, this allocation represents a significant opportunity to advance affordable housing projects that have been in planning phases.

The Los Angeles Housing Department has already identified specific projects to receive funding following an application process that opened in September.

The city previously approved $150 million in ULA spending in 2023 and $425 million in 2025, making this the latest substantial investment in addressing the region's housing affordability crisis.