LOS ANGELES--(BUSINESS WIRE)--City of Los Angeles Mayor Antonio Villaraigosa and the Corporation for Supportive Housing (CSH) celebrated the first loan award from a public and private partnership to L.A. Family Housing (LAFH) – a non-profit developer that will use the $3 million to support the development of Glenoaks Gardens to provide 60 units of permanent supportive housing. This is the first project to receive funding from the $30 million City of Los Angeles Supportive Housing Loan Fund, which was created last year by the City of Los Angeles Housing Department (LAHD) and CSH in partnership with the Conrad N. Hilton Foundation, Fannie Mae, the California Housing Finance Agency (CalHFA), private bank investments from HSBC, US Trust/Bank of America Private Wealth Management and US Bank, and grants from the Weingart Foundation, California Community Foundation and Washington Mutual.
“Permanent supportive housing is the best tool we can use to end homelessness in Los Angeles and I applaud the efforts of L.A. Family Housing,” Villaraigosa said. “Thanks to our combined efforts, the residents who sign their leases at Glenoaks Gardens residents will be able to leave behind the streets for good and help us prove that permanent supportive housing is a cost-effective long-term solution to the crisis of homelessness.”
L.A. Family Housing’s Glenoaks Gardens in Sun Valley will provide single adults – many of whom are homeless with a mental illness – with a beautiful studio apartment and a variety of on-site services such as mental health counseling, recovery programs and employment services. The new development will replace an underutilized commercial property.
“The combination of permanent, affordable housing and on-site supportive services has proven to end homelessness for people who face the most complex challenges – individuals and families who are not only homeless, but who also have extremely low incomes and serious, persistent health issues,” said Deborah DeSantis, President and CEO of CSH, a national organization which manages the fund and is dedicated to ending homelessness. “Without a stable place to live and a support system to help them address their underlying problems, most homeless people bounce from one emergency system to the next – from the streets to shelters to public hospitals to psychiatric institutions and detox centers and back to the streets – endlessly.”
LAFH is the first organization in the Los Angeles area to access the fund, which is the largest of its kind nationally. The fund was established to finance supportive housing that helps eliminate the causes of homelessness, and provides pre-development and acquisition loans to developers of future supportive housing developments.
“We can’t just focus on homeless shelters, which work well for emergencies and short-term situations,” said Stephanie Klasky-Gamer, President and CEO of L.A. Family Housing, an integrated provider of temporary shelter, affordable housing development and comprehensive social services. “Glenoaks Gardens will provide residents with the long-term stability to live independently in affordable housing.”
Over the next five years, the City of Los Angeles Supportive Housing Loan Fund will finance the development of at least 1,500 units of supportive housing. The fund allows affordable housing developers to compete successfully for scarce land by providing funds quickly, and increasing efficiency through a one-stop source for acquisition and predevelopment capital while securing permanent financing.
Current investments and grants totals are as follows: the Conrad N. Hilton Foundation, which invested the first $1 million; Fannie Mae, $8 million; CalHFA, $8 million; LAHD, $5 million loan loss guarantee; HSBC, $2.5 million; US Trust/Bank of America Private Wealth Management, $1.5 million; US Bank, $1 million; the Weingart Foundation, $750,000; the California Community Foundation, $250,000; and Washington Mutual, $75,000.
“Fannie Mae is proud to work with the City of Los Angeles, the Corporation for Supportive Housing, Cal HFA and our other partners to increase the supply of permanent supportive housing in Los Angeles,” said Joe Weisbord, Director of Homeless Initiatives for Fannie Mae. “This exemplary public/private partnership is well aligned with Fannie Mae’s goal to help prevent and end homelessness. The promise of the Glenoaks Gardens development and those that will follow bodes well for the future.”
Also recognized for their contributions were Los Angeles Councilmember Tony Cardenas; Susan Howard of the U.S. Treasury Department, Office of the Comptroller of the Currency; Melody Nava of the Federal Reserve Bank of San Francisco; and Gonzalez Goodale Architects, which is developing an environmentally sustainable design for Glenoaks.
About the Corporation for Supportive Housing (CSH)
The Corporation for Supportive Housing is strengthening communities across the country. CSH provides high-quality advice and development expertise, makes loans and grants to supportive housing sponsors, strengthens the supportive housing industry, and works to reform public policy to make it easier to create and operate supportive housing. CSH has raised over $221 million from foundations, corporations, and through government contracts nationwide, and has leveraged over $1 billion in federal, state, and local public and private sector financing. Since 1991, CSH has committed nearly $125 million in loans and grants for 16,708 units of supportive housing that are now operational, with an additional 10,837 units in the pipeline. The units in operation have ended homelessness for at least 21,000 adults and children. Other investors who have signed loan agreements with CSH include Fannie Mae, the Conrad N. Hilton Foundation, CalHFA, U.S. Bank, HSBC, and U.S. Trust/Bank of America Private Wealth Management,. For more information, visit www.csh.org.
About L.A. Family Housing (LAFH)
L.A. Family Housing is the single largest provider of emergency and transitional shelters as well as permanent affordable housing throughout the city. Each property is augmented by services designed to meet the needs of residents, and help them become and remain self-sufficient. The organization is lead by its President and CEO Stephanie Klasky-Gamer who brings over 15 years of experience in social and economic justice work and an in-depth understanding of housing policy and real estate development. L.A. Family Housing maintains a positive presence and is highly regarded for its work by the homeless and affordable housing communities. For more information, visit www.lafh.org.