LIIF Partners with Public and Private Sector to Launch $60 Million Los Angeles County Housing Innovation Fund
The County of Los Angeles has partnered with three nonprofit organizations and two financial institutions to deliver $60 million of low cost, flexible capital for affordable rental homes for low income families and individuals. The newly launched Los Angeles County Housing Innovation Fund (LACHIF) will provide loans to nonprofit and for-profit affordable and supportive housing developers to acquire land or existing properties. LACHIF loans can be up to 100% loan-to-value and carry interest-only payments for a term of up to three years.
LACHIF’s first loan, originated by fund partner Century Housing (Century), will help Abode Communities (Abode) acquire a vacant, fire-damaged building in Pasadena that will be rehabilitated to create 45 homes for low income seniors. Abode, an experienced nonprofit affordable housing developer, will use the $3.7 million acquisition loan from LACHIF, along with a $2.6 million acquisition and predevelopment loan from the City of Pasadena, to begin work on the Hudson Oaks Apartments. During the construction phase of the project, Abode will make extensive improvements to the building, which sustained significant damage in a fire in 2005 and was left unused until now.
The Los Angeles County Board of Supervisors created LACHIF through the Homeless Prevention Initiative. Los Angeles County Supervisor Mark Ridley-Thomas said of the fund, “As part of the Homeless Prevention Initiative the Los Angeles County Board of Supervisors authorized the utilization of $20 million in County general funds for the creation of LACHIF, an affordable housing acquisition and predevelopment revolving loan fund. The 2009 Homeless Cost Avoidance Study by the Los Angeles Homeless Services Authority (LAHSA) and the Economic Roundtable illustrates that the public cost for homeless persons is decreased significantly when housed. The public cost for homeless adults decreases 79% when housed, from a monthly average of $2,897 to $605. LACHIF will serve as a vehicle to further the County’s investment in affordable housing and reducing homelessness. The development of affordable housing will foster the creation of jobs and revitalization of underserved areas.”
The fund partners include the Community Development Commission of the County of Los Angeles (LACDC), the Low Income Investment Fund (LIIF), Century and the Corporation for Supportive Housing (CSH). Investors in the fund include LIIF, OneCalifornia Bank and Citi Community Capital, the fund’s largest investor at $20 million. LIIF is also the Fund Manager and Agent.
The initial $20 million from LACDC is being leveraged with an additional $40 million in private capital to create a $60 million revolving loan fund that can be accessed by nonprofit and for-profit developers, as well as public agencies, for projects throughout the county. By increasing capital access for developers, LACHIF will support the growth of quality, affordable housing opportunities and provide critical seed money for permanent supportive housing developments and to help to bring this housing to scale in greater Los Angeles.
“The Los Angeles County Housing Innovation Fund will provide acquisition and predevelopment financing at very competitive rates,” noted Lois Starr, Director of Housing Development and Preservation at LACDC. “LACHIF will generate much needed affordable housing throughout Los Angeles County. Additionally, through the development of affordable housing a number of construction jobs will also be created.”
For more information about LACHIF, visit the LACHIF website .
-Carolina Romo, LACHIF Administrator, Community Development Commission of the County of Los Angeles, (323) 890-7255, Carolina.Romo@lacdc.org
-Samantha Hojo, Marketing and Communications Manager, Low Income Investment Fund, (415) 772-9094, email@example.com
-Steve Peelor, Sr. Vice President of Lending, Century Housing, (310) 642-2034, SPeelor@centuryhousing.org
-Ruth Teague, Los Angeles Program Director, Corporation for Supportive Housing, (213) 623-4342 x 103, firstname.lastname@example.org