Beverly Hills Approves Negotiation Agreement with West Hollywood Community Housing Corp. for 252-Unit Affordable Project on West 3rd Street

After years of deliberation and a comprehensive selection process, Beverly Hills has moved forward with plans to develop what would be the city’s second affordable senior housing complex—a 252-unit project that represents a significant commitment to addressing California’s housing crisis in one of the state’s most affluent communities.

On September 12, 2023, the Beverly Hills City Council unanimously approved an Exclusive Negotiation Agreement (ENA) with the West Hollywood Community Housing Corporation (WHCHC), granting the nonprofit developer a one-year window to finalize terms for a ground lease on city-owned property at 9268-9298 West 3rd Street.

“The Beverly Hills City Council has always been committed to providing affordable housing for our residents,” Mayor Dr. Julian Gold said following the vote, according to a report in the Beverly Hills Courier. “Sometimes it takes time to put these projects together, and I am pleased we are able to move forward. While this is the first step, the Council is dedicated to providing more housing options for our community in the future.”

A Rigorous Selection Process

The city’s path to this agreement began in April 2022, when it released a Request for Qualifications and Conceptual Proposals (RFQ/P) for developing an affordable senior housing project. The response was substantial: 13 developers submitted 27 conceptual proposals across seven city-owned sites.

The selection process consisted of two rounds, with proposals scored on criteria including development entity qualifications, conceptual development program, financing strategy, comparable experience, and implementation timeline. City staff and consultant Keyser Marston Associates reviewed each submission in detail with a City Council Affordable Housing Ad Hoc Subcommittee consisting of Mayor Gold and Council member John Mirisch.

Of the 27 initial proposals, 22 focused on properties near the intersection of 3rd Street and Foothill Road, with 11 specifically targeting the 9268-9298 W. 3rd Street properties—either individually or combined. This concentration aligned with previous council discussions identifying these parcels as among the most suitable city-owned sites for affordable housing development.

After narrowing the field to four finalists—Abode Communities, Bridge Housing, Related Companies of California, and WHCHC—the ad hoc committee conducted interviews and toured operational projects developed by each organization before recommending WHCHC in June 2023.

The Proposed Development

WHCHC’s conceptual proposal envisions a six-story building with an additional usable rooftop level and two levels of subterranean parking. The project would include 252 one-bedroom units (averaging 672 square feet each), with affordability requirements ranging from 30 percent to 80 percent of area median income, plus one additional two-bedroom unit for an on-site property manager.

The development would also feature approximately 3,300 square feet of commercial space, 45,000 square feet of open space, and 252 residential parking spaces along with 13 commercial spaces. Architect Zoltan Pali of local firm SPF:architects has been selected to design the project.

Jesse Slansky, WHCHC’s President and CEO, emphasized the project’s social mission during the council’s study session. The proposed development would include onsite amenities and active programming to combat social isolation faced by many community members as they age.

The project is structured in two phases of 153 and 99 units, primarily to maximize funding from outside sources and minimize the city’s financial contribution. While this approach carries some risk that the second phase might not secure anticipated funding, it offers the potential to significantly reduce Beverly Hills’ gap funding requirement.

Financial Considerations

Currently, the city’s funding share is projected at $1.8 million, though officials acknowledge this figure could change over time. Vice Mayor Lester Friedman expressed concern during discussions that the city’s financial responsibility might ultimately exceed this estimate.

Slansky addressed these concerns by noting favorable conditions for affordable housing financing. “Right now, the state, luckily, has robust resources,” he said. “If we can keep moving this process quickly and apply for financing from the state, I don’t anticipate having the [funding] request of the city increase.”

The city would also contribute the land itself through a nominal fee or limited ground lease payments over a 55-year term—a common structure for 100 percent affordable projects. Additionally, the city may be asked to waive certain permitting and plan review fees, terms that will be negotiated during the ENA period.

A Developer with Deep Roots

WHCHC, founded in 1986 and led by Slansky, has developed 21 affordable rental apartment communities housing more than 1,200 residents, the majority of whom live below the federal poverty line. While the organization’s roots are in West Hollywood, it has expanded operations to three cities.

Recent completed projects include Mariposa Lily (42 units, 2023), Berendo Sage (42 units, 2022), Westmore Linden (93 units, 2020), and Elden Elms (93 units, 2021) in the Koreatown/Pico Union Area, with additional projects under construction in the Westlake North area of Los Angeles.

Community Input and Next Steps

Council members emphasized the importance of community engagement as the project moves forward. Councilmember Sharona Nazarian said she supported the project but wanted to see significant outreach to the community as development proceeds.

Councilmember Lili Bosse echoed this sentiment, noting she’d like the community to know “nothing is a done deal, and they can help shape what this going to look like.”

Councilmember John Mirisch was unequivocal in his support, stating, “We can’t move forward with this soon enough.”

The ENA establishes a framework for the next 12 months of negotiations, with the possibility of a six-month extension. During this period, WHCHC will conduct public outreach meetings in coordination with the city, develop detailed plans, and work toward finalizing terms for a ground lease, development disposition agreement, and affordability covenants.

Critically, the project must undergo full environmental review under the California Environmental Quality Act (CEQA) before any ground lease can be executed. WHCHC will bear the costs of preparing the required environmental impact report.

Opposition and Concerns

Not everyone welcomed the proposal. During public comment, critics argued it made little sense to house low-income residents in an area filled with expensive grocery stores and other high-priced services. Others cited traffic concerns and potential disruption to neighbors, including the adjacent Magen David of Beverly Hills synagogue on Foothill Road.

“This project will disturb the serenity of the temple,” one public commenter said.

As of the staff report’s writing, the city had received one written comment expressing general opposition to an affordable project. However, city officials committed to extensive future outreach through newspaper advertisements, social media, mailed notices, and press releases to engage the wider community.

The Broader Context

Beverly Hills’ push for affordable housing comes amid intense pressure from California’s housing mandates. The state has set aggressive targets for cities to plan for new housing, including specific allocations for affordable units at various income levels.

Like many affluent California communities, Beverly Hills has struggled to meet these requirements, leading to legal challenges and tensions with state housing officials. The city’s Housing Element—its blueprint for meeting state mandates—has been a subject of ongoing negotiation with the California Department of Housing and Community Development.

The approval of the ENA represents a tangible step toward addressing these obligations while maintaining local control over the development process. By partnering with an experienced nonprofit developer and committing city-owned land, Beverly Hills is following a model that has proven successful in other communities seeking to increase affordable housing stock without relying solely on private market-rate development.

The project site itself consists of three parcels totaling approximately 1.5 acres. One building at 9268 W. 3rd Street has been vacant since March 2020, while another at 9298 W. 3rd Street is currently leased month-to-month to the Beverly Hills City Employees Federal Credit Union for $1,000 per month. The city will seek alternate locations for the credit union as the project advances.

If ultimately approved and constructed, the development would significantly expand Beverly Hills’ affordable housing inventory and provide much-needed senior housing options in a region facing acute shortages of both. Whether this ambitious project can navigate the complex financing, environmental review, and community approval processes ahead remains to be seen—but for now, Beverly Hills has taken a decisive first step.