LA Mayor Seeks $360M for Affordable Housing From 'Mansion Tax'

The funding would go toward building 1,528 new units and repairing over 2,500 existing affordable homes.

Apr. 9, 2026 at 9:26pm

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A serene, photorealistic painting of a multi-story apartment building in a Los Angeles neighborhood, with warm sunlight streaming through the windows and deep shadows cast across the facade, conveying a sense of quiet contemplation about the city's affordable housing challenges.This affordable housing investment aims to preserve and expand the supply of homes for low-income Angelenos, addressing a crisis that has pushed many out of the city.Los Angeles Today

Los Angeles Mayor Karen Bass and City Councilmember Ysabel Jurado announced a plan to allocate over $360 million in funding for affordable housing projects across the city. The money would come from the city's 'mansion tax' on high-end real estate sales and would fund the construction of 1,528 new affordable units as well as repairs to more than 2,500 existing affordable homes.

Why it matters

The affordable housing crisis in Los Angeles has become a major political issue, with rising rents and home prices pushing many residents out of the city. This funding represents a significant investment in expanding and preserving the city's stock of affordable housing, which could help address the crisis.

The details

The $360 million appropriation, which requires City Council approval, would fund 80 affordable housing projects across Los Angeles. In addition to the new construction, the funding would also go toward repairing more than 2,500 existing affordable units in need of work. The money comes primarily from the city's 'mansion tax,' a 4% tax on property sales between $5.3 million and $10.6 million and a 5.5% tax on sales above that.

  • The city announced the opening of applications for the affordable housing projects in September 2025.
  • The Los Angeles Housing Department released a report to the City Council on April 6, 2026 detailing the specific projects that would receive funding.

The players

Karen Bass

The mayor of Los Angeles who is seeking reelection in the city's June 2026 primary election.

Ysabel Jurado

A Los Angeles City Councilmember who chairs the council's Ad-Hoc Committee on Measure ULA, the 'mansion tax' that is providing the funding for these affordable housing projects.

United to House L.A. tax

Also known as the 'mansion tax,' this 4% tax on property sales between $5.3 million and $10.6 million and a 5.5% tax on sales above that has raised over $1.1 billion in revenue since it was passed in 2022.

Los Angeles Housing Department

The city agency that released the report detailing the specific affordable housing projects that would receive funding from the 'mansion tax.'

Ad-Hoc Committee on Measure ULA

A recently created Los Angeles City Council committee that is considering changes to the 'mansion tax' law, which some in the real estate industry believe has chilled development in the city.

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What they’re saying

“This investment of $360 million is to build, preserve and enhance affordable housing across Los Angeles. That means more affordable housing built in our neighborhoods, more existing housing preserved so families aren't pushed out.”

— Ysabel Jurado, Los Angeles City Councilmember

“This is Measure ULA in action, turning the will of the voters into real solutions for our communities.”

— Ysabel Jurado, Los Angeles City Councilmember

“With the release of $14 million in housing assistance and $300 million for housing, this is just one way the city is breaking away from the underinvestment of the past to instead focus on prevention and housing production so Angelenos don't fall into homelessness in the first place and so we have the supply of housing that we need to drive the cost down.”

— Karen Bass

What’s next

The Los Angeles City Council will need to approve the $360 million appropriation for the affordable housing projects. The council's Ad-Hoc Committee on Measure ULA is also considering potential changes to the 'mansion tax' law.

The takeaway

This significant investment in affordable housing, funded by the city's 'mansion tax' on high-end real estate sales, represents a major effort by Los Angeles leaders to address the city's housing affordability crisis. If approved, the funding could lead to the construction of over 1,500 new affordable units and the preservation of more than 2,500 existing affordable homes.