In case you haven’t heard, we’re in a bit of an affordable housing crunch.
According to the L.A. Times, “the city recently estimated that 82,000 additional affordable units will be needed by 2021.”
Non-profit developers have been aware of this problem for some time. Approximately 8000 families applied for the 184 units of affordable housing that the East L.A. Community Corporation has built in Boyle Heights and East Los Angeles recently. 1500 families vied for a spot in the 60-unit residence on Whittier Bl. built by the Retirement Housing Foundation last March. And RHF was expecting as many as 2500 applications for the affordable, 78-unit senior residence set to open next door. More than 1000 families applied to live in a 90-unit residence in Macarthur Park built by McCormack Baron Salazar on land owned by Metro. And these figures likely don’t include the folks who are desperate for housing but do not earn the minimum amount required to qualify for consideration.
But even as the need for affordable housing grows, the city’s ability to provide and maintain it has declined significantly. Since 2008, funding for the city’s Affordable Housing Trust Fund (AHTF) has dropped from $108 million to approximately $26 million. And, despite Mayor Eric Garcetti’s vocal support for affordable housing, no new funds were allocated to the AHTF in the last budget. While L.A. will likely receive some of the (anticipated) $130 million in funds set aside for affordable housing from the first year of cap-and-trade, the funds will first need to be divvied up among municipalities across the state.
Which is why it was heartening to see the Metro Board move forward on its plans to set aside at least 35% of units built on Metro-owned land for affordable housing and to establish a fund to assist non-profit developers in building or preserving affordable housing on privately-owned land near transit.
It’s not a panacea, as discussion of the 30-page staff report assessing the viability of the plan made clear. And there is much left to be done in the way of hammering out funding structures and sources for the loan fund or the criteria for discounts on Metro-owned land to entice developers to build affordable units. But it is a step in the right direction. Read more…