Los Angeles is facing a serious housing crisis. More than 400,000 households are living in substandard conditions, and many residents spend over half their income on rent and utilities. The city also has one of the highest homelessness rates in the country. In 2017, over 58,000 people were unhoused. A rent increase of just 5 percent could lead to an estimated 2,000 additional people losing their housing. Statewide, the median home price is more than two and a half times the national median, making homeownership and stability even more difficult to attain.

A public bank can help address this crisis by financing affordable housing directly. Public banking expert Karl Beitel has outlined how a municipal bank in Los Angeles could issue construction loans, long-term mortgage loans, and bond-backed financing for multi-unit affordable housing. Over time, it could also support a property acquisition program to purchase existing rental units and convert them into permanently affordable homes through land trusts or cooperative ownership.

Public banks offer a reliable alternative to depending on private investors or the for-profit housing market. They can put public funds to work on long-term housing solutions that serve local needs. This includes supporting housing development around transit without triggering the displacement of residents, particularly in historically impacted Black, Latino, and Asian working-class communities. Public banks can also co-lend with local banks and credit unions, helping expand local investments and reduce risk for partners working on community housing initiatives.