Housing Diversity Corp.’s Downtown L.A. Micro-Units Land Another $34M
By Greg Cornfield March 20, 2024 1:25 pm
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Housing Diversity Corporation (HDC) has secured more financing for its growing portfolio of affordable housing micro-units in the South Park neighborhood of Downtown Los Angeles, Commercial Observer has learned.
The firm announced a $34.2 million loan package for its 147-unit Vida DTLA development, which is set to open March 28. The bundle is composed of $22.6 million from the United Way of Greater L.A. and $11.6 million in additional equity raised through Pinnacle Partners for sponsor OZ Navigator, which is a partnership between HDC and investment and development firm Nitze-Stagen.
The announcement comes shortly after HDC secured a combined $67 million from United Way and Arctaris Impact Investors to build the 227-unit Liv DTLA, which is expected to be completed in the second quarter around the block from Vida DTLA.
The 147 all-studios Vida project is eight stories tall with just 67,456 square feet on a 9,000-square-foot lot at 1317 South Grand Avenue. It’s one of HDC’s “micro-housing” projects in which units averaging less than 330 square feet.
Vida will feature 88 market-rate units with rent rates set at what’s deemed affordable for those earning below 120 percent of the area median income. Federal housing choice vouchers will be accepted for 42 of the units, and the final 17 units will be designated for “extremely low-income” residents through the city’s Transit Oriented Communities (TOC) program.
The TOC program provides development incentives for projects that produce affordable housing near major public transportation routes. The project benefits from federal opportunity zone tax incentives, which allow investors to defer taxes on capital gains.
“This project demonstrates that creating affordable housing in L.A. is possible when we implement innovative approaches with partners like HDC,” Elise Buik, president and CEO United Way of Greater L.A., said in a statement. “By streamlining financing, offering flexible, below-market capital, and investing in creative designs, our affordable housing initiative is bringing affordable housing to communities across Greater L.A. when we need it most.”
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
