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Story perspectives

LA's $1 Billion Homelessness Tax Fails to Fund Housing

1/15/2026

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Story summary
  • Los Angeles has raised over $1 billion through a homelessness tax.
  • Less than 1% is allocated for affordable housing, and the tax lacks a mechanism to loan funds to developers.
  • Most money has gone to administrative costs and legal defenses.
  • Supporters including City Councilwoman Eunisses Hernandez and unions initially promoted the tax as a housing solution.
  • Experts say the measure stalled housing development and failed to deliver.