On August 11, the Housing Authority of the City of Los Angeles (HACLA), the nation’s second-largest housing authority, closed on a partnership with Avanath, a leading national owner of affordable housing, to purchase a 669-unit apartment community in the Crenshaw neighborhood of Los Angeles, known as the Baldwin Village Apartments.

Under the deal, HACLA, through its nonprofit arm La Cienega LOMOD, Inc., and Avanath have placed a deed restriction on the property covering a total of 468 units, with half of those restricted to families earning up to 60% of the area median income (AMI) for Los Angeles, and the other half restricted to families earning up to 80% of AMI. The restrictions will stay in place for 55 years. The project will benefit from California’s statutory exemption from property taxes for the affordable units, which was a critical component of getting the deal to pencil. HACLA made a loan to support the acquisition and the remaining financing came from a Fannie Mae loan and equity raised by Avanath.

Read More