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Los Angeles is preparing a nearly $467 million affordable-housing funding round that would help build new apartments, preserve existing affordable homes and stabilize properties under financial pressure.
The City Council voted 13–0 on September 22 to authorize the next Homes for LA solicitation, according to City News Service reporting published by MyNewsLA. Applications opened October 13, 2026.
For developers and owners, the opportunity extends beyond new construction. The funding framework addresses aging buildings, expiring affordability restrictions and operating shortfalls that can put existing housing at risk.
The package authorizes up to $466,575,674.71 through Homes for LA Round 2, administered by the Los Angeles Housing Department.
The Homes for LA NOFA Round 2 regulations were approved by Mayor Karen Bass and the Los Angeles City Council on September 24, 2026. Individual project funding recommendations will return to the council and mayor for approval.
The September 22 action therefore advances a competitive funding process. It does not mean the entire amount has already been awarded or disbursed.
LAHD’s funding schedule divides the anticipated resources among seven programs:
ULA Multifamily Affordable Housing $123,484,930
Pooled Sources: Multifamily $115,462,625.71
ULA Alternative Models: New Construction $104,084,806
ULA Operating Assistance $38,423,441
ULA Acquisition & Rehabilitation: Preserving Affordability $32,684,989
Portfolio Preservation $27,000,000
ULA Alternative Models: Preservation $25,434,883
Total $466,575,674.71
The allocations combine Measure ULA revenue, state Permanent Local Housing Allocation funds, the city’s Affordable Housing Linkage Fee and Los Angeles County Affordable Housing Solutions Agency funding.
Each program has its own eligible uses and financing requirements. The table describes anticipated program allocations, not awards to particular developments.
LAHD identifies several reasons existing affordable properties may need support: rent restrictions nearing expiration, deferred maintenance, major building-system repairs and expenses rising faster than rental income.
The framework separates those needs. Acquisition and rehabilitation funding targets properties with expiring affordability covenants. Operating assistance addresses short-term economic shocks. A new Portfolio Preservation program seeks to stabilize properties across a sponsor’s portfolio.
For owners, that separation matters. A project seeking money for building repairs may need a different program than a property seeking help with operating expenses.
The committee package also revised Portfolio Preservation loan limits to $30,000 per unit, capped at $9 million, with a separate preservation fee limit. Applicants should check the final term sheet for the full conditions.
The proposed regulations distinguish between tax-credit and non-tax-credit financing.
Pooled Sources: Multifamily, ULA Multifamily and ULA Acquisition & Rehabilitation may use Low-Income Housing Tax Credits. The two ULA Alternative Models programs exclude LIHTCs.
Alternative Models programs emphasize permanent affordability and tenant participation in governance. Their financing approach allows a larger city contribution, reducing reliance on the conventional tax-credit financing process.
Sponsors should choose a program around the project’s ownership structure, affordability commitments and financing plan. A larger potential subsidy does not make every development eligible.
LAHD’s May 1 announcement reported approximately $361 million in Round 1 awards across 80 projects, supporting 1,528 new affordable apartments and 3,713 apartments to be preserved or stabilized.
Together, those categories total 5,241 homes.
These are the housing outcomes associated with funding awards, not a statement that every apartment has been completed.
LAHD’s September presentation said it expected to begin executing loan agreements for 4,129 units across 71 projects in October 2026.
That distinction helps explain what comes after a NOFA approval: project selection, financing coordination, agreements and implementation.
The regulations submitted with the council package list the following anticipated dates:
October 13, 2026: Application period opens.
November 13, 2026: Sponsor underwriting applications due.
December 4, 2026: Project applications due.
Applicants should confirm the final schedule and any addenda through LAHD’s Homes for LA page. Sponsor underwriting and project submissions have separate deadlines in the submitted materials.
Program questions can be directed to lahd.H4LANOFA@lacity.org.
The council package calls for quarterly reporting on applications, funding awarded and spent, project and unit counts, anticipated schedules and significant delays.
It also directs LAHD to provide clearer public explanations of the different programs.
For the affordable-housing industry, the next test is how effectively the funding moves projects into construction and keeps existing homes affordable and financially sustainable. The round creates several routes toward those goals; the results will depend on project selection and execution.
Developers, nonprofit sponsors and owners applying for Homes for LA Round 2 funding, including owners of existing affordable buildings with expiring restrictions or repair and operating shortfalls. Applicants to the two ULA Alternative Models programs also need tenant governance in their ownership plans. Residents of existing affordable buildings are affected only if their owner applies and wins. The council action awards no project and promises no unit to any household.
The Los Angeles City Council approved a nearly $467 million Homes for LA funding round for affordable-housing construction, preservation and operating support. Applications opened October 13, 2026. The framework includes programs that use LIHTCs and alternatives that exclude them; project awards will follow the competitive selection process.
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