LA asks developers for help in devising
cost-effective affordable housing

The city will set asid $120M for a pilot program to build 1K units

TRD LOS ANGELES /
Jan.January 30, 2019 09:00 AM
A rendering of an under-construction FlyawayHomes prefab project in South LA and LA City Hall (Credit: Wikipedia)

The city’s latest plan to house the homeless: ask developers for their ideas.

The Los Angeles City Council set aside $120 million from a bond measure for a program to explore cost-effective ways to create 1,000 affordable housing units.

The program allows the mayor to seek proposals from developers, according to the Los Angeles Times. That could include pre-fabricated housing, rehabbing single room occupancy housing or granny flats. The developments will also need to have space for a service provider for residents.

The funding comes from the $1.2 billion raised in bonds via Measure HHH, a ballot measure approved in 2016 to address L.A.’s mounting homeless crisis. It allowed the city to issue those bonds to fund housing and supportive services for people experiencing homelessness. The bonds were funded by a property tax increase.

The pilot program would also explore efficient ways to finance projects. So far, developers have had trouble securing financing through Measure HHH, because it requires a mountain of paperwork and approvals. That has contributed to high development costs. HHH projects cost around $550,000 per unit, significantly higher than the $400,000 per unit it costs for similar housing prior to HHH, according to the Times.

The program is for permanent, not temporary housing. The developments need to demonstrate long-term financial and physical durability, the city has said.

The city could release a request for proposal for the pilot program by March. [LAT]Dennis Lynch 


Related Articles

arrow_forward_ios
Welton Jordan of EAH Housing, and the block in South Park where the nonprofit development organization wants to build a 64-unit complex (Credit: Google Maps)

Two affordable housing projects will add 120 units to transformed South Park

14518-14526 Erwin Street (Credit: Google Maps)

Developer wants 71-unit complex to rise in Van Nuys Opportunity Zone

Tenancy in common arrangementsare growing in gentrifying Eastside neighborhoods like Silver Lake, Echo Park and Glassell Park (Credit: iStock)

LA landlords pitch controversial ownership arrangement as rent law kicks in

Monica Rodriguez orchestrated the nixing of a residential project set for the Verdugo Hills Golf Course (Credit: Google Maps, Wikipedia)

The threat of fire doomed this Tujunga resi project. Now the developer will sue

(Credit: Courtesy Santa Fe Art Colony Tenants Association via Los Angeles Magazine and iStock)

Developer sued by DTLA artist collective over rent-restricted building

David Ryu (Credit: Getty Images)

LA becomes 1st city to enact ban on developer money

Adam Shekhter and the 1415 5th Street project

WS Communities boosts affordable housing plans in Santa Monica

AIDS Healthcare Foundation Executive Director Michael Weinstein with a rendering of Crossroads of the World

Judge clears way for Harridge’s Crossroads megaproject

arrow_forward_ios
Loading...