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Affordable housing developer announces three new projects in LA
Los Angeles Nov 04, 2021
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The affordable housing developer Decro announced Wednesday that it has raised $110 million in private and public funding to build three affordable housing developments in Los Angeles.
“Decro has achieved this milestone by leveraging public financing such as Proposition HHH and No Place Like Home funds along with raising private debt as well as equity from syndicating federal and state low-income housing tax credits,” Decro CEO Ted Handel said.
In November 2016, voters passed Proposition HHH to use $1.2 billion to build 10,000 units for homeless Angelenos, with the goal of more than tripling Los Angeles’ annual production of supportive housing. The statewide No Place Like Home program went into effect in 2016 to provide up to $2 billion in bond proceeds to invest in permanent supportive housing.
The three planned developments are Brine Residential, McDaniel House and NoHo 5050.
The $61.6 million Brine Residential will have 976 units on a 97,000- square-foot campus at the former A-1 Eastern Homemade Pickle Company site in Lincoln Heights. Residents will be provided with housing, food, health care and child care. The project is being financed publicly through Proposition HHH and No Place Like Home dollars, as well as loans from Citibank. It is also receiving low-income housing tax credit equity from Red Stone Equity Partners.
The $23.9 million McDaniel House will have 47 units in a modular construction building in Koreatown. It is named for the late Hattie McDaniel, the first Black actor to win an Academy Award. The development, which will include community space and case management offices, is being funded by Proposition HHH, along with permanent loans from Citibank and low-income housing tax credit equity from R4 Capital. It is being built in partnership with Daylight Community Development and Angelino Supportive Housing Partners.
The $24 million NoHo 5050 will provide 40 units in North Hollywood, as well as community space and areas for case managers. It is being funded by Proposition HHH and No Place Like Home dollars, with construction and permanent loans from KeyBank, federal low-income housing tax credit equity from R3ed Stone Equity and California low-income housing tax credit equity from Sugar Creek Capital.
“Housing alone will not ensure a successful transition to permanent housing. Availability of supportive services within these projects is essential,” Handel said. “For that reason, Decro is proud to partner with VIP Community Mental Health Center at Brine Residential, The People Concern at McDaniel House, and Downtown Women’s Center at NoHo 5050 to provide residents with ready access to case management and other on-site resources.”
Three other projects are currently under construction by Decro, with a total of 138 units in the pipeline, and a fourth project with 46 units is about to begin construction. Decro owns more than 1,000 affordable housing units in California and Florida.
