Los Angeles Mayor Eric Garcetti, the Los Angeles Housing + Community Investment Department and Enterprise Community Partners Inc. today announced the expansion of the New Generation Fund, which will bring an additional $50 million to create, preserve and retrofit affordable housing in the city.
"The public and private sectors must work together to preserve and expand affordable housing," said Mayor Eric Garcetti. "The New Generation Fund is an excellent example of how the City can leverage limited resources to pursue these goals.The new retrofit features are especially important to Los Angeles, and should help us move more quickly on preservation."
The New Generation Fund offers pre-development and acquisition funding through a public-private partnership between the City of Los Angeles and a consortium of banks, financial institutions and community development financial institutions (CDFIs). In this latest round of funding, the City’s renewed commitment of $10 million has been used to leverage $50 million in private capital that will be made available on a revolving loan basis to affordable housing developers.
“Early stage funding is critical in the development of affordable housing, especially in a high-cost city like Los Angeles with great market pressures,” said Jeff Schaffer, VP and Southern California market leader, Enterprise. “Enterprise has a generational goal to end housing insecurity, meaning no more homelessness and no more families paying 50 percent of their income toward housing. A number of flexible financing sources are needed to accomplish this, including programs like the New Generation Fund.”
Since its 2008 inception, the New Generation Fund has provided more than $69 million for the construction and preservation of 1,355 affordable apartments including:
- Historic rehab of the Rosslyn Hotel in downtown Los Angeles, now home to 264 formerly homeless individuals including 100 veterans.
- Construction of the Metro @ Hollywood, a transit-oriented development providing 120 affordable apartments for low-income seniors.
- Construction of Riverwalk at Reseda, 77 new apartment homes for families in the San Fernando Valley.
The renewed fund will continue to invest in developments that address the City's goal of integrating affordable housing with neighborhood amenities, public transportation, social services and energy conservation.
“The New Generation Fund is a great product of collaboration and innovation that is key to getting the “most bang for the buck” in our current business environment. The Los Angeles Housing + Community Investment Department looks forward to building more entrepreneurial public and private partnerships like the New Generation Fund that are essential to a holistic approach to addressing the housing and community needs of Los Angeles,” said Rushmore Cervantes, General Manager, Los Angeles Housing + Community Investment Department.
Citi, Wells Fargo, Metropolitan Life, JPMorgan Chase and Deutsche Bank contributed a combined commitment of $50 million for this fund renewal. Enterprise Community Partners is the fund manager.
"The New Generation Fund has been an important tool to building affordable housing in Los Angeles. Our commitment helps to ensure that this important work continues in building and preserving viable communities," said Richard Gerwitz, co-head, Citi Community Capital.
About Los Angeles Housing + Community Investment Department
In 2013 the Los Angeles Housing Department and the Community Development Department were integrated into the Los Angeles Housing + Community Investment Department (HCIDLA). With a vision to be the champion for a Los Angeles free of poverty, homelessness, and substandard housing, HCIDLA aims to promote livable and prosperous communities through the development of decent, safe, and affordable housing, neighborhood investment, and social services.
About Enterprise Community Partners, Inc.
Enterprise works with partners nationwide to build opportunity. We create and advocate for affordable homes in thriving communities linked to jobs, good schools, health care and transportation. We lend funds, finance development and manage and build affordable housing, while shaping new strategies, solutions and policy. Over more than 30 years, Enterprise has created nearly 340,000 homes, invested $18.6 billion and touched millions of lives. Join us at www.EnterpriseCommunity.comorwww.EnterpriseCommunity.org.