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Friday, Mar 31, 2023

HHH Gives Projects a Boost

More than $800 million in public funds allocated to combat homelessness in Los Angeles has made its way to private companies and nonprofits looking to develop housing projects since Proposition HHH passed.

The top five recipients of the public funds, which come from a bond measure funded by a property tax approved by city voters, are the Skid Row Housing Trust, Coalition for Responsible Community Development, Affirmed Housing Group Inc., Figueroa Economical Housing Development Corp. and Linc Housing Corp.

The five companies have secured $58.6 million, $57.5 million, $44.7 million, $43 million and $37.5 million in public funds, respectively, according to data posted on the Los Angeles Housing and Community Investment Department’s website.

Other large affordable housing developers that have received HHH funding include Path Ventures, Single Room Occupancy Housing Corp. and Thomas Safran & Associates Inc.

The disbursements are part of a $1.2 billion dollar fund the city is using to help finance so-called supportive housing — developments with on-site services like job training, substance abuse treatment, child care, social workers and educational programming.

The ballot measure responsible for the funds — dubbed HHH — has given supportive housing developers an early cash infusion important for getting projects off the ground, according to Path Ventures Executive Director Amy Anderson.

“The thing that has been so special about HHH funding is that the city was willing to commit those funds to projects early,” she said. “For a locality to best support an affordable housing project, they need to jump in strong, and they need to jump in early.”

The ballot measure also created a more streamlined entitlement process for supportive housing developments, allowing for faster project approval, according to Linc Housing Chief Operating Officer Suny Lay Chang.

“(HHH is) integral in getting these projects built and financed,” she said.

Both Path and Linc have three projects with HHH funding in the pipeline. Linc’s funded projects include developments at 3200 W. Temple St. in Westlake, 1424 Deepwater Ave. in Wilmington and 11408 S. Central Ave. in Watts, and the company is hoping to get one or two more financed with HHH funds.

Path Ventures recently completed the first stage of Path Metro Villas, which touts itself as the first HHH funded project to start construction. The second stage of the project is in the works as well. When completed, it will have 187 units.

Housing help

The $1.2 billion bond measure, which was approved by voters in November 2016, aims to aid in the construction of roughly 10,000 housing units for homeless individuals and those in danger of becoming homeless. It also provides for facilities to increase access to services for mental health, and drug and alcohol treatment. The Housing and Community Investment Department, in conjunction with other city agencies, decides how to allocate HHH money, which comes from property owners who pay an average of $9.64 per $100,000 of assessed property value. As of March, $810 million in HHH funding had been committed to 79 projects which represent a combined 5,388 units, according to the Housing and Community Investment Department.

The city is seeking proposals for additional homeless housing developments.

Path Ventures’ Anderson said the application process opening up multiple times a year has made it easier to fund projects quickly. She added that her organization will seek HHH funding for more projects “as long as there is funding available.”

Funding sources found

But for developers, the HHH money alone typically isn’t enough to make a project work financially, and many are turning to other sources for additional funds including private lenders, other public entities and philanthropic dollars.

Residences on Main, a 50-unit project at 6901 S. Main St. in Florence being developed by the Coalition for Responsible Community Development and LA Family Housing has a several different financial backers. It has received roughly $10.8 million from Proposition HHH, $4.3 million in public money from a state fund and a $16 million construction loan from JP Morgan Chase & Co.

Path Ventures’ Metro Villas project has 16 financial backers, which include City National Bank, UnitedHealthcare Inc., and California Community Reinvestment Corp.

In the Pipeline

A look at several early supportive-housing projects that utilize Prop. HHH funds

Central Avenue Apartments

The project at 11408 S. Central Ave. in Watts will have 64 units.

Developer: Linc Housing Corp.

Architect: Lahmon Architects

Estimated Completion Date: 2021

HHH Money: $12.6 million

Hartford Villa Apartments

The site for the 101-unit project at 445 S. Hartford Ave. in Westlake was formerly a vacant lot. The apartments are for homeless veterans and low-income individuals.

Developer: Single Room Occupancy Housing Corp.

Architect: KFA

Estimated Completion Date: 2020

HHH Money: $12 million

Ingraham Apartments

When completed, the Ingraham Apartments will be a 120-unit project at 1218 W. Ingraham St. in Westlake.

Developer: Single Room Occupancy Housing Corp.

Architect: KFA

Estimated Completion Date: 2021

HHH Money: $12 million

Amani Senior Apartments

The project at 4200 Pico Blvd. in Mid-City will have 53 studio apartments for homeless seniors aged 55 and older, a manager’s unit and 2,000 square feet of commercial space, which will include supportive services.

Developer: Wakeland Housing and Development Corp.

Architect: Abode Communities

Estimated Completion Date: 2021

HHH Money: $11.9 million

Path Metro Villas Phase 2

Path’s second phase of the Metro Villas development at 340 N. Madison Ave. will have 122 units and a mental health clinic.

Developer: Linc Housing Corp.

Architect: Lahmon Architects

Estimated Completion Date: 2021

HHH Money: $12.6 million

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans Welk is a managing editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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