The final rounds of loans for permanent supportive housing projects were approved for City Council consideration Friday through the city’s Proposition HHH funding.
The ballot measure approved by voters in 2016 loans a total of $1.2 billion in housing bonds for eligible projects.
About $231 million was approved Friday for 34 various permanent supportive housing projects, and another $120 million was slated for recipients of the city’s Housing Challenge Request for Proposals, which will loan money to several projects to create about 1,000 units. In total, if approved by City Council, 8,600 of the city’s goal of 10,000 permanent supportive housing units by 2026 will be funded by some HHH loan money.
The Prop. HHH Citizens Oversight Committee approved the recommendations unanimously.
The average cost of each unit this round was about $502,000, with the most expensive estimated at more than $686,000. The average subsidy the city is loaning per unit is about $140,000.
With Friday’s approval, at least one complex is slated to have permanent supportive units funded in all of the city’s 15 council districts. Committee members said they won’t know how successful the projects will be until they start getting people into the units.
Officials with the city said there have been collaborative efforts to include further services once people are housed and that they have seen experienced developers teaming up with homeless service providers.
City Councilman Bob Blumenfield submitted a letter to the committee saying he wished more units had been approved for projects in his district in the northwest San Fernando Valley.
“It didn’t make the cut, and I’m disappointed,” a representative said on behalf of the councilman. “Although I’ve supported every push for supportive housing, we still have very few units in our district. Shared permanent supportive housing could have been opened this year.”
For at least the third round of funding, 41 units were approved for loans in Blumenfield’s Council District 3.
Attached to the last round of HHH funding was a request for $7 million to fund a Santa Monica Boulevard housing project and a funding revision to the Missouri Place Apartments complex.
Another $10.5 million was appropriated for projects where costs estimates had increased, but those costs could be offset by the tax revenue and bond interest from the buildings over time to fill in the gap, city officials said.
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