Greystone subsidiary lends $ 33 million for homeless housing development in Los Angeles – Commercial Observer
LSA Capital and Aedis real estate group have landed $ 33 million in construction funding for a supportive and homeless housing development in Los Angeles, Commercial Observer has learned.
America First Multifamily Investors (ATAX) has provided exempt and taxable loans for the construction of $ 45.7 million of a permanent housing building with 67 units and a transitional housing building with 21 units which will be located in the south-central in Los Angeles, the Greystone subsidiary announced on Wednesday.
The transaction includes a 24-month loan from ATAX, with additional equity aligned with RBC Community Investments, a low-rental housing tax credit investor. Freddie mac also provides permanent funding through tax-exempt loans as part of its affordable housing platform.
The proposed property, known as Hope on Avalon, will include a five-storey building that will provide housing for 66 homeless people seeking permanent housing with supportive services. The initiative also includes a two-story transitional housing building with 21 larger units that can accommodate up to 80 chronically homeless people. Both buildings will be constructed using modular construction which provides cost savings and lead times.
“Homelessness is a growing challenge in the United States, and Los Angeles County in particular has seen a 68% increase in the homeless population since 2013,” Frank Bravo, managing director of ATAX, said in a statement. “This transaction with LSA and Aedis will help provide essential housing to those who need it most.”
Hope on Avalon development is supported by social service contracts provided by the Los Angeles County Department of Health Services‘ flexible grant pool. The department’s program administrator, Shiny corners, will provide long-term operating grants for permanent and transitional units.
“It is a fundamental human need to have a safe and secure home”, Scott baldridge, owner of real estate group Aedis, said in a statement. “Through Hope on Avalon and our relationships with LSA and ATAX, we are able to develop multi-family housing with supportive services that promote community integration, greater independence and the well-being of those coming out of homelessness.