Housing Diversity Corp. Plans Third Micro-Housing Project in LA
The development would add 230 units in a federally designated opportunity zone
With no end in sight to Los Angeles’ affordability crisis, Housing Diversity Corporation is again expanding its micro-housing strategy, Commercial Observer has learned.
The development firm will file plans with the city to build its third project at 1411 South Flower Street in the South Park neighborhood of Downtown L.A., about a half-block from the Los Angeles Convention Center. The eight-story building would include 227 micro-units around the corner from another micro-housing project by Housing Diversity Corp.
The project will take advantage of federal opportunity zone tax breaks, as well as incentives from the city for developing rental units near public transportation stops. Opportunity zones, which stem from President Donald Trump’s 2017 tax overhaul, allow investors to defer taxes on capital gains.
The project is expected to be permitted by December 2023. STS Construction and Development is a partner on the project and will provide construction services. Simon Ha of Steinberg Hart is lead architect.
Residential development in Downtown L.A. has been expanding for years, including in the South Park area near the convention center, which is set for a $1.2 billion renovation. That includes the 685-unit THEA at Metropolis, which was just part of the massive Metropolis development by Greenland USA.
Seattle-based Housing Diversity Corp. has been targeting opportunity zones and transit-oriented development projects in L.A. the past few years. In September, the city approved the firm’s plans for 151 micro-units around the corner from Flower Street at 1317 South Grand Avenue. The firm is also building a micro-housing project with 69 units in Hollywood. The average unit size is 375 square feet, and the firm will target rent at $1,995 per month.