Greystone Affiliate Funds LA Homeless Housing Project
America First Multifamily Investors LP has provided $33 million in construction financing for a $46 million permanent housing and transitional housing development.
LOS ANGELES – The Greystone affiliate of America First Multifamily Investors LP has provided more than $33 million in tax-exempt and taxable loans for the construction of a 67-unit permanent housing building and a 21-unit transitional housing building in Los Angeles.
The construction financing will cover a significant portion of the $45.7 million development, which is titled, Hope on Avalon.
The planned properties will be located within South-Central Los Angeles and will provide housing to a total of 146 homeless individuals across two properties.
The five-story permanent supportive housing building will accommodate 66 homeless individuals and will aim to assist individuals in transitioning to self-sufficiency. The two-story transitional housing building will offer larger units to accommodate up to 80 chronically homeless individuals.
In effort to provide cost savings and timeline efficiencies, the buildings will be developed by using modular construction
ATAX’s managing director, Frank Bravo originated the transaction. Freddie Mac is providing the permanent financing through Tax-Exempt Loans as part of its affordable housing platform.
The Los Angeles Department of Health Services’ Flexible Subsidy Pool has provided social services contracts to support the project. The department’s program administrator, Brilliant Corners, will offer long-term operating subsidies for both the permanent and transitional units.
The project’s co-developers, LSA Capital Inc. and Aedis Real Estate Group will benefit from the ATAX construction financing with a 24-month term and additional equity from the low-income housing tax credit investor, RBC Community Investments LLC.
“Homelessness is an ever-growing challenge throughout the US and Los Angeles County in particular has seen a 68% increase in the homeless population since 2013,” says Bravo. “This transaction with LSA and Aedis will help provide critical housing to those who need it most. With Greystone’s expertise in the affordable housing space, ATAX can find solutions that meet the needs of both our clients and communities.”
“This unique transaction that addresses such a critical community need in Los Angeles shows ATAX’s commitment to generating social good through our investment activities,” says Ken Rogozinski, CEO of ATAX.
“It is a basic human need to have a safe and secure home,” states Scott Baldridge, owner of Aedis Real Estate Group. “Through Hope on Avalon and our relationships with LSA and ATAX, we can develop multi-family supportive housing that promotes community integration, greater independence, and well-being for people transitioning from homelessness.”