Thursday, April 23, 2026

Financing Cited as Primary Hurdle to Housing Growth in LA County

CITY NEWS SERVICE

Financing, rather than local opposition, is the primary barrier to building affordable housing at scale, the Los Angeles County Affordable Housing Solutions Agency said Wednesday, citing overwhelming demand in its first round of project funding.

The agency reported that 127 applications were submitted seeking a combined $1.5 billion to build 11,625 housing units — more than double initial projections and exceeding recent levels of affordable housing production in the region.

“These results challenge a long-standing assumption about what’s holding back affordable housing in Los Angeles County,” Rex Richardson, mayor of Long Beach and chair of the agency’s board, said in a statement. “The challenge isn’t a lack of sites, developers, or community will. The challenge is financing and operational support.”

Following an initial review, 79 applications requesting $954 million advanced for further evaluation, officials said. The agency has authorized up to $250 million for the inaugural funding round, including $100 million already awarded to 10 projects, with additional funding decisions expected in May.

“This first round of funding from the Los Angeles County Affordable Housing Solutions Agency is not just about building housing — it’s about preserving and strengthening the communities our residents call home,” county Supervisor Holly Mitchell said.

“By removing barriers to development and investing in long-term stability, we are meeting the urgent demand for new housing while taking a critical step toward creating affordable communities where residents are not forced out by rising costs, and where the culture and character of our neighborhoods are protected and able to thrive.”

Los Angeles Mayor Karen Bass said most of the initial awards are located within the city.

“We’re turning the tide on decades of rising homelessness in LA and cutting through red tape to accelerate affordable housing construction like never before,” Bass said. “I look forward to continuing to partner with LACAHSA as we work to make safe, stable, and affordable housing a reality for every Angeleno.”

Officials said the agency’s approach is designed to streamline development by offering a “one-stop” financing model, reducing the need for developers to assemble multiple funding sources. The model has shown projected cost savings of about 11.5% compared with traditional financing methods, according to the agency.

In addition to supporting new construction, the program includes funding for renter protections, emergency rental assistance and other services aimed at preventing homelessness, officials said.

The funding initiative is supported by Measure A, which created a dedicated, locally controlled source of revenue for affordable housing and related programs.