When Affordability Meets Sustainability: How This LA Nonprofit Is Going All Electric
ELACC's Adalia Rodriguez on what it takes to decarbonize the organization's entire portfolio.
In Boyle Heights, a vibrant Los Angeles neighborhood, nonprofit East LA Community Corp. is paving the way for affordable, sustainable housing by transitioning its entire housing portfolio to all-electric energy systems.
The first two properties that ELACC will be transforming are 2003-built Lorena Terrace and 1920-built Vallejo Apartments. Initially, the two properties will receive roughly $2.5 million for the improvements. The energy-efficient enhancements are part of Retrofit.LA, an initiative funded by the Los Angeles Department of Water and Power, designed to develop strategies for achieving 100 percent clean energy for Angelenos over the next decade.
“By fostering community engagement and ensuring the benefits of clean energy reach those who need it most, we are laying the foundation for long-term sustainability and equity in Boyle Heights and East Los Angeles,” the nonprofit’s COO & Vice President of Human Capital Adalia Rodriguez told Multi-Housing News.
Here’s how ELACC is planning to enhance living conditions for its approximately 2,500 residents across 24 properties, while also driving economic growth and climate resilience in Boyle Heights.
Why have you decided to transition to an all-electric energy system? And how do you see this transition improving public health in the neighborhood?
Rodriguez: Many residents in Boyle Heights face significant health challenges due to poor indoor air quality and the impacts of pollution, which disproportionately affect our communities. Gas appliances in homes contribute to indoor air pollutants that can exacerbate respiratory issues such as asthma and increase exposure to harmful emissions.
By replacing gas appliances with clean, efficient electric alternatives, we’re reducing indoor pollution, cutting greenhouse gas emissions and improving public health outcomes for the community. This solution not only supports healthier living conditions but also advances climate and health equity in Boyle Heights by ensuring that vulnerable communities benefit from the latest clean energy technologies.
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Are there any challenges you anticipate having in implementing the all-electric energy system across your housing portfolio?
Rodriguez: As small nonprofit housing providers, we are often constrained by limited staffing capacity to manage the decarbonization process, including administrative tasks, tenant engagement, budgeting and construction oversight.
A significant portion—about 50 percent—of our housing portfolio will require upgrades to its electrical infrastructure to meet current building and safety standards and support full electrification. Additionally, engaging tenants—particularly within vulnerable populations—is essential to ensure a smooth rehabilitation process while minimizing disruption. Lastly, while energy-efficiency measures aim to offset operating costs, there is some risk that utility bills could increase without careful planning and oversight.
How does your decarbonization strategy align with your goal of financially empowering low-income families?
Rodriguez: Low-income families spend a high amount on utility costs, both due to their lower income and the limited access to sustainable infrastructure. Our decarbonization strategy directly addresses these challenges by transitioning affordable housing to efficient, all-electric energy systems, reducing utility costs for residents by an estimated 30 percent and providing cleaner, healthier living environments.
By leveraging financial incentives and supporting local workforce development, our strategy also fosters economic growth in the community, creating jobs and empowering families to reinvest in their futures. This approach ensures that low-income families are at the forefront of both economic development and climate resilience efforts in the Eastside.
How did you decide which properties to upgrade first within your portfolio?
Rodriguez: We selected Lorena Terrace and Vallejo Apartments to pilot our decarbonization strategy because they offer valuable insights into upgrading diverse types of assets within our portfolio. Lorena Terrace has dedicated replacement reserve funds but is underperforming financially, making it a more straightforward candidate for upgrades.
In contrast, Vallejo Apartments is a much older, smaller building constructed in 1920 that has yet to undergo rehabilitation. Its condition presents unique challenges, but the project allows us to test more complex upgrades. By starting with one ‘easier’ and one ‘harder’ property, we are also exploring whether stronger-performing assets can support weaker ones from a financing perspective.
How will all these upgrades be financed? What capital sources are you leveraging?
Rodriguez: The upgrades are being financed through a combination of funding sources. We are utilizing a revolving entity-level credit facility co-funded by two Community Development Financial Institutions, which covers upfront costs. Incentives from four programs—LADWP’s Comprehensive Affordable Multifamily Retrofits, the California Low-Income Weatherization Program, TECH Clean California and the Air Quality Management Districts’ Multifamily Affordable Housing Electrification Program—will replenish the revolving fund, covering approximately 90 to 100 percent of total project costs.
The Ahmanson Foundation provided $100,000 to support Lorena Terrace—including tenant-requested energy-efficient dishwashers—while Wells Fargo Foundation and Raza Development Fund contributed an additional $100,000 to cover closing costs and loan origination fees. These partnerships have been instrumental in securing the resources needed to implement these projects without burdening residents.
How will you ensure that the costs of these upgrades will not negatively impact the affordability of the properties for low-income families?
Rodriguez: We prioritize leveraging external funding sources—such as grants, incentives and low-cost financing—to cover the majority of upgrade expenses, ensuring that costs are not passed on to tenants. By implementing energy-efficient retrofits, we also reduce long-term operating and maintenance costs, which helps control overall expenses and mitigates rent pressures.
The reality is that operating costs are increasing faster than rent growth, placing strain on nonprofit housing providers like us. Controlling utility costs is a key strategy to maintain financial stability and affordability for residents while enhancing their economic resilience.
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What are your long-term goals when it comes to sustainability and public health in Boyle Heights and East Los Angeles?
Rodriguez: Our long-term goals are to build healthier, more sustainable communities by reducing greenhouse gas emissions, improving indoor air quality and lowering energy costs. Through the decarbonization of affordable housing, we aim to address systemic climate inequities while advancing public health, resilience and economic empowerment for low-income families.
What advice would you give to other organizations looking to implement similar sustainability initiatives?
Rodriguez: Our experience has shown that careful planning and collaboration are critical to successfully implementing sustainability initiatives. Organizations should begin by prioritizing properties within their portfolio and gathering all necessary documentation to streamline the process.
Building top-down organizational support is essential, along with developing a clear funding strategy and ensuring capacity for execution. Leveraging available incentives and technical assistance programs can help minimize upfront costs, while exploring financing options can bridge the gap between initial expenses and incentive reimbursements.
Collaboration is equally important—working with other housing providers in a cohort model allows for peer learning, sharing of best practices and the development of scalable solutions. Based on our work, we are creating a roadmap and toolkit to guide other organizations as they embark on similar efforts.
