LA Agency Greenlights $102M for Affordable Projects
The funding will serve 10 communities totaling 566 units.
The Los Angeles County Affordable Housing Solutions Agency has authorized its very first development funding round, as reported by The Los Angeles Times. LACAHSA approved $102 million in financing for 10 income-restricted projects encompassing 566 units across the metro.
Totaling $340.5 million in development costs, the 10 communities are:
- 19200 Harborgate, a 122-unit adaptive reuse project by Bold Communities
- 24940 Pico Canyon, a 104-unit conversion by Bold Communities
- Casa Del Mariachi, a 90-unit ground-up project by Coalition for Responsible Community Development
- 36th St. and Broadway Apartments, a 27-unit rehabilitation project by LTSC Community Development Corp.
- Yolanda Project, an 80-unit new project by New Economics for Women
- Path Villas Normandie, a 40-unit development by Path Ventures
- Drew Street Apartments, a 31-unit rehabilitation project by Self-Help Ventures Fund
- Fountain Apartments, a 37-unit ground-up development by TPC Homes
- Sierra Vista Apartments, a 30-unit rehabilitation project by TPC Homes
- Encanto, a 5-unit rehabilitation development by Wakeland Housing and Development Corp.
LACAHSA received applications for 127 projects requesting a total of $1.5 billion in funding. The winners were chosen based on cost containment, development readiness, as well as qualifying criteria for 501(c)(3) bonds and the proposed affordable housing models.
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The agency assists projects that secured LIHTC but suffer from funding gaps due to credit pricing, interest rates and construction costs. However, LACAHSA also prioritizes non-LIHTC developments that qualify for tax-exempt bonds. This first funding round included seven non-LIHTC and three LIHTC developments.
Of the 566 funded units, 327 will rent at or below 30 percent of the area median income, 48 will be reserved for households earning up to 50 percent AMI, 76 are restricted for earners making up to 60 percent AMI, while 80 and 23 will cater to individuals earning up to 80 and 120 percent AMI, respectively. The remaining 12 apartments are slated for managerial purposes.
LACAHSA’s affordable financing streamlining efforts
LACAHSA emerged following the passage of California Senate Bill 679 in 2022, with the goal of boosting affordable housing completions across Los Angeles County. The agency is funded through Measure A, a half-cent sales tax enacted in 2024, which replaced the previous quarter-cent sales tax. Measure A is expected to generate more than $1 billion annually.
The agency aims to streamline affordable housing financing and act as the sole incentive provider. While the existence of public funding sources can be beneficial, layering just one over the capital stack can delay a project four months on average and increase costs by $20,460 per unit, according to the Terner Center at UC Berkeley.
