Los Angeles New Housing Program Targets ‘Missing Middle’
For years, policymakers in Los Angeles County and other pricey regions of California have bemoaned the difficulty of providing housing for middle- income residents. Affordable housing for low-income residents is also desperately needed, but established and new methods are being employed to develop these units and are being implemented throughout the state. Similar programs aimed specifically at middle-income earners have been nearly nonexistent — until recently. In the last two years, joint powers including the California Statewide Communities Development Authority (CSCDA) and the California Community Housing Agency have begun implementing new workforce housing initiatives. Through these programs they work directly with cities and private firms to purchase market-rate buildings and reduce rents to levels affordable to essential workers and other middle-income tenants. CSCDA has acquired 16 properties since December, including eight in Los Angeles County. These deals have been approved by city officials in Carson, Glendale, Long Beach, Monrovia and Pasadena. Under the terms of the program, CSCDA issues tax-exempt bonds to finance the purchase of target properties, which remain in the hands of the authority for up to 30 years, when the bonds reach maturity. Because the properties are not privately held, they are exempted from property taxes, and those savings allow rental prices to be maintained at levels affordable to tenants earning between 60% and 120% of the area median income. At the end of the 30-year bond period, cities can choose to take over ownership of the property or sell to a new buyer, collecting the proceeds from the sale. Participating cities don’t have direct ownership of properties prior to that but can force an earlier sale after 15 years. Buildings purchased through the program are owned by public entities, but private firms experienced in creating affordable housing and securing bond financing are brought on to participate in each transaction. Newport Beach-based Waterford Property Co. has worked on the acquisition of nine properties purchased through the program. Waterford co-founder Sean Rawson said the company serves as an asset manager or project administrator in these deals, overseeing the purchase of properties and their operation.
Tags : INTERNATIONAL Affordable Housing Policymakers Housing Program Los Angeles CSCDA California Community Housing Agency