Developer plans 75-unit affordable complex in Pico-Union
Project seeks city incentives, and may seize on federal Opportunity Zone designation
A developer is planning to build a 75-unit rental complex in Pico-Union that would be 100-percent affordable.
HM Land Development, a Delaware-based LLC, filed a proposal for 1228-1240 South Normandie Avenue, near the intersection with Pico Boulevard. The site consists of three lots totaling less than a half-acre of land.
HM Land Development is tied to Calabasas-based law firm Cornelius & Cohanghadosh, according to property records. The law firm did not immediately return a request for comment.
The Pico-Union properties are now owned by an entity managed by a different Delaware-based LLC, HM Land Development OZ Fund; it is tied to the same law firm. Delaware’s laws regulating limited liability companies are some of the most flexible in the country, making it a welcome place for businesses.
The properties were purchased in July for $3.5 million. The three parcels now consist of an existing duplex, a single-family home, and three-unit building developed.
The owner’s OZ Fund name suggests it had intended to develop the project through the federal Opportunity Zones program. Investors in eligible projects nationwide can defer and in some cases waive capital gains taxes on their development.
The recent filing also includes a handful of entitlements requested through Los Angeles’ Transit Oriented Communities program. That program allows developers to build out their projects outside of current zoning codes in exchange for reserving a percentage of units as affordable. The developer is seeking base incentives, including a density bonus, as well a height increase and reductions, records show.