The 81-year-old was found unconscious by the Los Angeles Police Department (LAPD) in the front garden of the property with a stab wound to the chest before later being pronounced dead at hospital.
Police responded to the call at around 9.30am local time on Wednesday 3 June where they identified the suspect as Michael Gledhill, 44, who also lived at the home in Tarzana, California with his mother, Handy's girlfriend.
He was arrested on suspicion of one count of murder and was taken to Van Nuys jail where his bail was set at $2million.
"With great sadness I can confirm that the gentleman who was attacked and killed on Wednesday in Tarzana was the actor James Handy," said acting agent Pam Ellis-Evenas.
In a tribute to the late actor, entertainment writer Jay Bobbin said, he was "heartbroken to learn about the passing of superb character actor".
"We were honoured to have him on UC: Undercover in a recurring role," Winslow said. "His performances were always special."
His notable performances include the Robin Williams film Jumanji where he played an exterminator and in 2017's Logan as the old doctor who treated Hugh Jackman after his first fight with X-24
Handy's last acting role was in 2022's Top Gun: Maverick as bartender Jimmy opposite Tom Cruise, Miles Teller, Jennifer Connelly, Jon Hamm and Glen Powell.
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