Six months after wildfires destroyed thousands of buildings across Los Angeles, state housing officials are releasing $101 million to accelerate construction of affordable multifamily rentals for displaced residents.
The new funding is available through California’s Multifamily Finance Super NOFA program, an initiative that streamlines access to several state housing resources. This disaster-specific allocation supports projects that have secured land-use entitlements, completed environmental reviews and are ready to begin construction immediately in and around the hardest-hit areas in Pacific Palisades and Altadena.
The funding comes atop $382 million previously made available statewide through the program, Gov. Gavin Newsom said in a statement. It aims to "accelerate the development of affordable multifamily rental housing so that those rebuilding their lives after this tragedy have access to a safe, affordable place to come home to,” he said.
Los Angeles is contending with a rental housing shortage made worse by the January wildfires, which damaged or destroyed more than 11,000 residential and commercial properties in areas such as Pacific Palisades and Altadena.
Only 20,000 new multifamily units are under construction across greater Los Angeles, down 15% from a year ago. Of the 17,217 residential units the city permitted last year, just 3,000 were affordable to low-income residents. Average asking rents in LA are about 30% higher than the national average, according to CoStar.
A March survey by Enterprise Community Partners found that nearly 9,600 proposed units of affordable housing across Los Angeles and Ventura counties are shovel-ready but stalled due to lack of financing.
Gaps in tight market
The new funds aim to unlock projects such as 4345 Woodlawn Ave. in South Los Angeles, a cleared site with building permits for a 33-unit affordable housing project.
Eligible projects can receive infrastructure grants, low-interest loans and operating subsidies, but only if they are ready to start construction quickly and will remain affordable for at least 55 years. Applications open July 21 and are due by Aug. 21.
In parallel, state, county and city officials have taken additional steps to speed recovery, including executive orders and legislation aimed at easing zoning and environmental barriers to rebuilding homes, schools and infrastructure in fire-affected communities.
For developers, the program presents an opportunity to secure public financing for affordable projects when multifamily development in LA remains a steep challenge.
Barriers like restrictive zoning, permitting delays and high land prices have led most builders to focus on luxury housing in denser areas like Koreatown and downtown, far from fire zones. Nearly 90% of the 95,000 units built in the past decade have been in higher-end properties, according to CoStar data, limiting options for displaced lower-income residents.