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Getting the Facts
Who are the people involved in building more affordable housing?

Affordable housing is created by both nonprofit and for-profit developers in partnership with government agencies, private lenders, and local governments.

Private For-Profit Developers. Private sector "for-profit" developers build most of the new housing in the City of Los Angeles. Most private developers build market-rate projects; however, some private developers use bond and tax credit financing to make units affordable. There are many differences between developing rental and for-sale housing and most developers specialize in one or the other. Few developers have the expertise or desire to change a proposed project from rental to for-sale or vice versa, and the market and economic feasibility studies conducted for one type of housing cannot be relied on for a different type of development.

Non-Profit Developers. Most affordable housing is created by nonprofit development corporations. Some of these corporations are community-based groups that may provide a range of services to their communities in addition to housing. There are a number of these groups in the City of Los Angeles. The different types of nonprofit housing developers include:

  • Community-based organizations that focus their efforts in a certain neighborhood or part of the city.
  • Nonprofit developers focused on creating housing for a particular group, such as persons with mental illness, seniors, homeless people, etc. These groups usually work in many communities.
  • Larger nonprofits that build and operate affordable housing throughout Southern California or even a larger area
  • Nonprofits that are both developers and technical assistance providers. These groups develop and operate housing themselves and provide development services for community or social services agencies that do not have their own development staff.

Associations of Nonprofit Housing Developers. The Southern California Association of Nonprofit Housing (SCANPH) is an association of nonprofit developers. SCANPH works on affordable housing policy, provides training and information to its membership and publishes an annual membership directory listing nonprofit developers and other nonprofits, businesses and public agencies involved in affordable housing. Information on nonprofit developers who work in the City of Los Angeles can be obtained by contacting SCANPH at http://www.scanph.org or (213) 480-1249.

Local, state and federal government housing agencies. The local, state and federal governments all provide financing for affordable housing through a variety of programs. Government agencies rarely produce and manage housing themselves, with the exception of the Housing Authority of the City of Los Angeles (HACLA).

Housing agencies of the City of Los Angeles

  • Los Angeles Housing Department: provides financing for affordable housing developments, administers the Rent Stabilization Ordinance and Systematic Code Enforcement Program, and other loan programs including first time home buyer assistance.

  • City of Los Angeles Community Redevelopment Agency: provides financing for projects, commercial and residential, that will help revitalize specific CRA Project Areas.

  • Housing Authority of the City of Los Angeles owns and operates both conventional public housing with about 8,000 units and the Section 8 Rental Assistance Voucher Program that provides rental subsidies to about 47,000 Los Angeles households. Although HACLA is a City agency, all its funding comes directly from the federal government. While most of HACLA's housing projects were built in the 1940s and 1950s, the agency has recently been involved in building new housing at Harbor Village (formerly Normont Terrace), Pueblo del Sol (formerly Aliso Village & Pico Gardens) in Boyle Heights, and Dana Strand in Wilmington.

Housing agencies of the State of California

Federal Housing Agencies

 
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