L.A. County's Affordable Housing Solutions Agency approved $100 million for 10 projects that will create 554 below-market rental units after receiving 127 applications seeking $1.5 billion.
Los Angeles County is betting that consolidating housing financing under one agency can finally get affordable homes built faster. The L.A. County Affordable Housing Solutions Agency, known as LACAHSA, approved just over $100 million on Wednesday for 10 projects that will create about 554 below-market rental units across the county.
The funding, drawn from Measure A, a half-cent sales tax approved by voters to fight homelessness and build affordable housing, marks LACAHSA's first major production round. Until now, the agency had awarded money only for homeless prevention efforts like rental subsidies for tenants.
We want to build housing cheaper and quicker, because that means more units, said LACAHSA interim chief executive Ryan Johnson.
The agency's model aims to solve a persistent problem: developers typically must juggle three to five different public funding sources, each with its own compliance requirements and approval timelines. A study by the Terner Center at UC Berkeley found that each additional funding source adds about four months to a project schedule and approximately $20,460 per unit in costs.
LACAHSA offers construction loans, permanent loans, rental subsidies and preservation funding all through one application. The agency reported that projects relying primarily on its funding achieved up to 12 percent lower total development costs compared to those mixing multiple state sources.
The demand far outpaced the available funds. Developers filed 127 applications seeking roughly $1.5 billion to build about 11,625 units. LACAHSA said it required developers to be able to break ground within 12 months to apply.
Three projects proposed ground-up construction. The Casa de Mariachi Apartments in Boyle Heights would add 90 studios and one and two-bedroom units. The Yolanda Project in Reseda would create 80 apartments for renters earning between 30 and 50 percent of area median income. The Fountain Apartments in Hollywood would add 37 studio and one-bedroom units.
The remaining seven projects involve conversions of existing buildings and hotels into affordable housing. Bold Communities plans to convert extended-stay hotels in Harbor Gateway and Stevenson Ranch into low-income senior housing. The organization expects those buildings to be occupied by new residents by the end of next year.
LACAHSA was built to meet this moment, said Long Beach Mayor Rex Richardson, who serves as chair of the LACAHSA board.
The projects approved Wednesday will pay for 554 below-market units. The vast majority are brand new homes, while a small share will convert existing market-rate residential units into affordable housing or extend deed restrictions on existing below-market units.
LACAHSA plans to approve another round of affordable housing funds in May. Developers must still meet the 12-month groundbreaking requirement to apply.
The agency ranks project proposals partly by their efforts to reduce costs. Ben Metcalf, managing director of the Terner Center, noted that such a focus on awarding dollars based on estimated development cost is not the norm among public agencies.
The rising cost of affordable housing has really only become an issue of visible concern over the last few years, he said.
The agency receives its funding from Measure A, a half-cent sales tax approved by Los Angeles County voters to fight homelessness and build affordable housing. Until now, it had awarded money only for homeless prevention efforts such as direct rental subsidies to tenants.
Michael Miller, president of Bold Communities, told the Los Angeles Times he could cut total development costs by roughly 5 percent to 10 percent by using LACAHSA instead of multiple funding sources. He said that if current schedules hold, the hotel conversions in Harbor Gateway and Stevenson Ranch could be occupied by new residents by the end of next year.
The projects approved include locations in the San Fernando Valley including Reseda and Harbor Gateway, as well as Boyle Heights, Hollywood, East Los Angeles and Glassell Park.
This article was generated with AI assistance.