Health Net announced a $10 million investment Wednesday to help speed up construction of affordable and mixed-income housing across Los Angeles County, where soaring costs and limited supply continue to strain renters.
The funding will support LA4LA’s “Guarantee Fund,” a financing program designed to help developers secure loans more quickly and move approved housing projects into construction faster.
Officials said the fund works by providing financial backing that gives lenders greater confidence in rental income streams, allowing for larger loans and reducing delays that can stall projects.
“Safe, stable housing is one of the most powerful prescriptions for better health — we’ve seen it change lives,” Dorothy Seleski, Medi-Cal president at Health Net, said in a statement. “This investment won’t just finance projects — it will unlock homes, restore hope and give thousands of Angelenos healthier tomorrows.”
In Los Angeles County, more than 485,000 low-income renter households lack access to affordable housing, more than 75,000 people are experiencing homelessness, and roughly 37,000 shelter and interim housing beds are available, according to officials.
Mayor Karen Bass said the funding builds on efforts to increase housing production.
“This investment will help continue the progress we’ve made accelerating the production of affordable housing and decreasing homelessness across Los Angeles,” Bass said.
LA4LA officials said the funding will support developments that include a mix of low-income, voucher-supported and middle-income housing units, with up to 30% reserved for voucher holders.
“We’re grateful to Health Net for their commitment to innovative housing solutions,” said Sarah Dusseault, lead strategist for LA4LA. “Their investment in the Guarantee Tool will transform how projects approach financing and increase the viability of affordable housing.”
Officials said the fund is designed to be sustainable, allowing capital to be reused for future developments as projects are completed.
Health Net is a California-based managed care health plan serving more than 3 million members statewide.
The investment builds on Health Net’s broader efforts to address housing and homelessness, with the company committing $93 million toward related initiatives across California since 2020, officials said.