Rising construction costs cut into LA’s ambitious supportive housing plan

Since the $1.2B bond passed in 2016, costs have jumped to more than $550K per unit

TRD LOS ANGELES /
Apr.April 24, 2019 03:00 PM
Mayor Eric Garcetti and a homeless encampment on skid row (Credit: Getty Images)

The $1.2 billion in bond money that Los Angeles raised to develop 7,000 units of permanent supportive housing for the homeless is draining fast, with the funds so far only covering about half the units.

City officials say rising construction costs is partly to blame, according to the Los Angeles Times. Since the bond measure known as Proposition HHH passed in 2016, construction costs for supportive housing have jumped to more than $550,000 per unit. President Trump’s recent tax cut have also caused the federal tax credits to lose value, compounding the problem.

Today, the L.A. City Council has signed off on $809 million for 79 projects that are expected to deliver 4,120 units, the Times reported. That means it still needs to subsidize 2,880 units to reach the 7,000-unit goal.

To reach the more ambitious goal of 10,000 units by 2026 — which city officials had been touting from the beginning — other sources of funding would have to be tapped, according to the report.

The first set of projects that have already been funded by the measure are expected to be completed by December.

City officials are considering other methods that could speed up the building. Mayor Eric Garcetti is expected to issue a proposal for developers to come up with ideas to build supportive housing in a way that won’t eat into more tax credits.

As a stop-gap measure, the mayor’s office has taken to building temporary homeless shelters across the county. Despite opposition from some communities, including those in Koreatown and Sherman Oaks, several shelters have already been built in Downtown and Hollywood. [LAT]Natalie Hoberman


Related Articles

arrow_forward_ios
AIDS Healthcare Foundation executive director Michael Weinstein is suing the center of measure HHH

AIDS Healthcare Foundation sues city over Skid Row project

Governor Gavin Newsom and a homeless tent encampment in Skid Row in September 2019 (Credit: Getty Images)

Landlords can now raise rent on tenants who house friends at risk of homelessness

Garcetti presses for proposed property tax measure in State of City

Garcetti presses for proposed property tax measure in State of City

Fresh off IPO, Lyft will invest in Garcetti’s “A Bridge Home” program

Fresh off IPO, Lyft will invest in Garcetti’s “A Bridge Home” program

Tents and belongings of the homeless line a street in downtown Los Angeles (Credit: Getty Images)

More LA landlords reject housing vouchers amid rising rents

LOS ANGELES, CA - SEPTEMBER 05:  Housing and homeless advocates funeral procession and Candlelight March to mourn the destruction of the former L.A. police headquarters between the The Old Bandstand at Los Angeles Plaza Park and Parker Center on Wednesdayon September 05, 2018 in Los Angeles, California.  A petition for a temporary restraining order filed by housing advocates to halt demolition of the building was denied paving the way for City Hall and the City Council to proceed with plans to build a $900 million luxury office. (Photo by Keith Birmingham/Digital First Media/Pasadena Star-News via Getty Images)

Wrecking ball ready to swing at Parker Center

Tempers flare in Venice over temporary homeless shelter

Tempers flare in Venice over temporary homeless shelter

First temporary homeless shelter is opening in Downtown

First temporary homeless shelter is opening in Downtown

arrow_forward_ios