Six years ago, Los Angeles had $108 million to spend in its affordable housing trust fund. This year, that amount fell to about $26 million. The city housing department estimates that the difference in funding levels would subsidize more than 1,300 affordable units. The money helps offset costs so developers can offer cheaper rents.
Several things have contributed to the drop: Federal funding was slashed. Redevelopment agencies that poured property tax money into affordable housing were dissolved.
City Council members Mitch O’Farrell and Gil Cedillo want the city to draw on some of the tax money that previously went to redevelopment agencies to help build more affordable housing. Other California cities and counties are already doing so, including San Francisco and Los Angeles County.
– LA Times