Hope on Alvarado

The affordable housing and homeless issues in Los Angeles are becoming direr. While solutions range from building more supply to meet demand and looking to the city to lift or change regulations that impede development, the design community has one low-cost solution: shipping container housing. KTGY Architecture + Planning is designing the city's first shipping container community—which uses shipping containers as the main building material, for residents transitioning out of homelessness. Hope on Alvarado is in the Westlake District and will feature 84 studio and one-bedroom units ranging in size from 400 to 480 square feet. Developed by Aedis Real Estate Group, this will be the first of a series of similar projects. We sat down with Mark Oberholzer, an associate principal at KTGY, to talk about the new project and why shipping containers have made a fine solution to the housing problem.

GlobeSt.com: What was the impetus for you to develop this community, and why is this a good location?

Mark Oberholzer: The development team is very experienced in affordable housing, and very aware of what being homeless in LA means – it's not an issue, it's a crisis. The site is located between MacArthur Park and Downtown Los Angeles—it's a great site because it is located in a neighborhood that is gentrifying but also has a significant homeless population. As the neighborhood gentrifies, there will still be a place for people transitioning from homeless.

GlobeSt.com: Why is the shipping container design a good model for this community?
Oberholzer:
We anticipate significant timesavings on the construction side with the use of containers – the containers are modified and completed locally in Los Angeles at the same time that the ground floor and garage are being constructed on site.

GlobeSt.com: What is the cost savings on this model, versus a more traditional low-income development?
Oberholzer:
The bulk of the cost savings is in the reduced construction schedule – we anticipate that the overall construction time will be 25-30% less than conventional construction.
In terms of straight materials' cost, a wood podium apartment building would generally be less expensive, except that it would take much longer to build. Since the shipping containers are manufactured and delivered to the site, there's much less construction mobilization time on site, and the work on the foundations can occur at the same time the shipping containers are being built off-site. The use of shipping containers avoids the limitations of sequential, on-site construction.

GlobeSt.com: What is your vision for the community?
Oberholzer:
We wanted to develop something unique for this underserved population. KTGY's design is centered around a central courtyard, providing privacy and encouraging safety and a sense of community According to Los Angeles Homeless Service Authority, the homeless population in Los Angeles County has increased to nearly 58,000 people, an increase of 23 percent over last year. Although nearly 15,000 of those considered homeless were in shelters, demand continues to outpace supply. Hope on Alvarado, the first in a series of housing complexes for individuals transitioning from homelessness, will provide supportive services in a highly walkable community. Walk Score rates this location a “Walker's Paradise” with a score of 90 out of 100. It also has excellent access to transit. Although the numbers of homeless are immense, we are hoping to make a difference for 84 individuals with this new residential community.

GlobeSt.com: This is a community for people “transitioning” from homelessness. Who exactly will this community serve and what kinds of amenities will be on site to serve them?
Oberholzer:
This is a supportive housing project, which means that there is a building manager who lives on site, as well as several full-time caseworkers who office on the ground floor and assist the residents. People transitioning from homeless have a wide variety of needs – they might need help with paperwork or be dealing with serious illnesses that require careful management. This project will provide a safe, supportive environment where residents can focus on improving their situation instead of spending their time looking for somewhere to sleep.

GlobeSt.com: Are there other cost-savings alternative housing models that we should be considering to create more homeless and even low-income housing projects in Los Angeles?
Oberholzer:
One of the mistakes many cities have made in the past is to attempt to build massive public housing projects, which invariably become stigmatized as “the projects.” What most advocates of supportive and affordable housing know is that a better approach is to integrate all types of housing together where possible—recognizing that community size matters to the community.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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