Los Angeles Residents to Gain Faster Access to New Affordable Housing through Health Net’s $10 Million Investment in “Guarantee Fund”
Partnership with LA4LA will accelerate construction of affordable and mixed-use housing across LA County
SACRAMENTO, CA — Health Net, one of California’s most experienced Medi-Cal managed care health plans and a Centene Corporation (NYSE: CNC) company, announced a $10 million investment in LA4LA’s “Guarantee Fund,” which will support the expedited construction of affordable and mixed-income housing across Los Angeles County.
The “Guarantee Fund” offers subsidies to help housing developers secure financing quickly for affordable rental projects, reducing start-up times and making new housing available faster for communities in need.
“Safe, stable housing is one of the most powerful prescriptions for better health — we’ve seen it change lives,” said Dorothy Seleski, Medi-Cal President at Health Net. “This investment won’t just finance projects — it will unlock homes, restore hope and give thousands of Angelenos healthier tomorrows. That means a sense of stability — stronger connections to care, fewer trips to the emergency room and a little more breathing room each day for people to work, learn and heal.”
In Los Angeles County, there are:
More than 485,000 low-income renter households without an affordable housing option
More than 75,000 unhoused persons living on the streets and/or shelters
Health Net’s investment is designed to help address these gaps by supporting housing developments that include a mix of low-income, voucher-supported, and middle-income units, with up to 30% reserved for voucher holders.
“This investment will help continue the progress we’ve made accelerating the production of affordable housing and decreasing homelessness across Los Angeles,” said Mayor Karen Bass. “I want to thank the LA4LA and Health Net teams for their continued partnership and for supporting innovative solutions to bridge gaps and build more affordable, stable housing citywide.”
When lenders are confident that subsidy payments like Section 8 or VASH vouchers will be made reliably, they can provide larger loans and finance more projects. LA4LA helps lenders provide larger loans and move more housing projects forward, particularly in neighborhoods near jobs, parks and schools and where residents will also have access to community resources. This closes financing gaps that can stall approved developments and encourages broader participation from property owners.
“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. As developments are completed and no longer require guarantees, Health Net’s capital can be redeployed — creating a sustainable cycle that supports additional projects over time.”
Health Net’s investment can be deployed across multiple sites countywide and, when combined with public subsidies and private lending, helps unlock significantly more housing development in the region.
This investment builds on Health Net’s broader commitment to addressing housing and homelessness across California. Since 2020, Health Net has dedicated a total of $93 million in investments related to housing and supportive services for unhoused individuals.