LA Metro Partnership Opens Affordable Community
Half of the apartments are prioritized for low-income veterans.
The Los Angeles County Metropolitan Transportation Authority and A Community of Friends have opened Lorena Plaza, an affordable housing community encompassing 49 units in Los Angeles. Development costs stood at $42 million.
Of the total, 32 apartments cater to households earning up to 30 percent of the area median income. The remaining units are restricted for residents with incomes up to 50 percent of the AMI, except for one apartment, which is set aside for an on-site manager. In addition, half of the apartments offer preference to veterans.
The partnership constructed Lorena Plaza on land owned by Metro in Boyle Heights, just north of Indiana Station. Downtown Los Angeles is roughly 5 miles away.
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The four-story community encompasses studio and one- to three-bedroom floorplans. Common-area features include 7,500 square feet of ground-floor retail space, a gym, a community room, a library and a computer area, among other amenities.
A Community of Friends will provide supportive tenant services such as case management, life skill classes, family and children assistance and substance use recovery guidance.
Project financing included:
- $23.3 million in 9 percent LIHTC equity
- $5.7 million permanent loan issued by Bank of America
- $3.4 million provided by the City of Los Angeles HOME Funds and Deferred Interest
- $3.1 million from the California Department of Housing and Community Development Infill Infrastructure Grant Program
- $2.9 million from the City of Los Angeles Homelessness Reduction and Prevention, Housing and Facilities Bond Proposition
- $1.2 million provided by the California Housing Finance Agency Special Needs Housing Program
- $1.1 million deferred developer fee
- $720,000 issued by the Federal Home Loan Bank
- $500,000 from Metro
- $150,000 in grant funds
Metro’s plans to address the affordable housing shortage
In 2021, Metro announced plans for the construction of 10,000 units by 2031, with at least half being income-restricted. As part of this goal, the authority launched its Joint Development program seeking to partner with local developers and build communities on Metro-owned land.
Lorena Plaza was the first project to debut this year as part of this new initiative. Another one, the 187-unit Santa Monica Vermont Apartments is scheduled to come online this summer.
Los Angeles affordable deliveries grow
Combating affordable housing supply challenges, developers had 64 fully affordable projects of 50 or more units underway across metro Los Angeles as of April, according to Yardi Matrix data. North of 6,600 units were under construction.
Last year, more than 2,100 apartments came online across fully affordable communities in the market, the same source shows. In 2025, the figure is bound to go up 67 percent as the data provider forecasts nearly 3,600 such units to debut, should market conditions remain stable.
One project slated for completion this year is Agave, a 58-unit affordable housing development in Altadena, Calif. A partnership between EAH Housing and Union Station Homeless Services broke ground on the community last year.
