Ten affordable housing developments have been awarded $100 million from the Los Angeles County Affordable Housing Solutions Agency’s (LACAHSA’s) inaugural funding round.
The Affordable Housing Production and Preservation NOFA (notice of funding availability) generated overwhelming demand, with 127 applicants requesting $1.5 billion—more than double the initial projects.
“These results challenge a longstanding assumption about what’s holding back affordable housing in Los Angeles County,” said Rex Richardson, Long Beach mayor and chair of the LACAHSA board. “The challenge isn’t a lack of sites, developers, or community will. The challenge is financing and operational support. … While the demand far exceeds available resources, this is an important first step, and it demonstrates both the scale of the need and the opportunity ahead. LACAHSA was built to meet this moment, and this response shows what’s possible when we do.”
LACAHSA is a regional, intergovernmental agency established to tackle the housing crisis. Created by California state legislation and supported by the Los Angeles County board of supervisors and partner cities, it brings together local leaders to accelerate affordable housing production, preserve existing housing, and prevent displacement across the region.
The recent funding is made possible through Measure A, a half-cent countywide sales tax that is generating over $1 billion annually to support housing, services, and prevention programs for people experiencing or at risk of homelessness.
Officials tout the new agency’s approach, saying the NOFA introduced a “one-stop-shop” financing model. The agency offered nine distinct funding products, including construction loans, permanent financing, rental subsidies, and operating support, designed to streamline development and reduce delays.
Following the recent awards, LACAHSA approved additional funding in another round. Together, the first and second rounds provide about $255 million to support approximately 1,500 affordable units.
In the initial round, which focused largely on developments without low-income housing tax credits (LIHTCs), the top applications showed about 11.5% cost savings compared with projects financed through the traditional LIHTC system, according to LACAHSA. Eight of the 10 funded projects are in Los Angeles.
The cost differential is likely attributed to the increased specifications and regulations placed on LIHTC projects, says Ryan Johnson, interim CEO of the agency.
“Without this kind of new funding that a regional agency brings, I don’t know if the majority of these projects would be getting off the ground,” he says.
The funds allocated in the first round are the last dollars in for those projects. Agency officials were intentional about making sure the projects closed on their financing to move forward, according to Johnson.
Points of emphasis included cost containment, project readiness, and developer experience.
Projects receiving funding in the first round include the 122-unit 19200 Harborgate development by Bold Communities, the 40-unit Path Villas Normandie development by PATH Ventures, and the 37-unit Fountain Apartments by TPC Homes and The People Concern, all in Los Angeles.