LA78, Los Angeles, CA
Goal: To preserve six affordable housing complexes located in desirable, dense, urban infill neighborhoods that are in high risk of affordability loss from past and future gentrification in Los Angeles.
The LA78 project is a six property, scattered site portfolio located in some of Los Angeles' most in-demand rental markets. CDP is once again partnering with BLVD Capital to acquire and rehab the six properties most of which were built in the 1920’s. LA78 is a family development available to households with incomes at or below 60% of area median income. 74 of the 78 units are covered under long term, project based Section 8 HAP agreements. 61% of the units are located in a QCT.
A central property management office located at the 22nd St property will serve all properties in the portfolio. Each site has its own unique character with varying amenities. All provide on-site laundry, two will have play areas, three will have BBQ and outdoor seating areas, and one will be upgraded to add organic garden boxes and edible fruit trees for resident use.
The project financing includes tax-exempt bonds allocated by CDLAC and issued by CSCDA which will be collateralized by the proceeds of an FHA 223f loan, and equity from the sale of non-competitive 4% LIHTC allocated by CTCAC.
Exterior renovations at all buildings in the LA78 portfolio will include new roofs, windows, paint, and extensive new landscaping. Four of the six sites will undergo seismic foundation repairs. All unit interiors will be upgraded with new energy efficient appliances, cabinets, counters, fixtures, lighting, paint, and LVP flooring. Construction will start late February, 2018 and is scheduled to be completed in October, 2019.
This project provided an opportunity for CDP to launch into the Los Angeles market
Located in highly desirable neighborhoods with high rental demands
Opportunities to enhance the charm and unique character of each of the six communities
This was CDP’s first deal in Los Angeles and there was a learning curve for dealing with the City
Logistical complications from coordinating work at six scattered sites
5 of the 6 sites are small with limited street parking for work crews or space for staging materials
4 of the 6 sites require extensive seismic work
A new property management company was brought in as construction was beginning
New GC with limited tax credit property experience
Number of Units: 78
Lot Size: 1.49 acres
Density: 52.35 units/acre
Unit Size: 375-939 ft2
Unit Mix: 19 Studios, 41 1BD/1BA, 12 2BD/1BA, 6 3BD/2BA
Parking Spaces: 23
Affordability: 50-60% AMI
Financing: 4% LIHTC and Tax Exempt Bonds
Architect: Ground Floor Design
Property Management: FPI
Total Cost: $24,557,307
Cost Per Unit: $314,837
CDP is proud to partner with these organizations, dedicated to bettering the lives not only of The Huntington’s residents, but of those lower-income residents in surrounding communities.