In a bid to address the pressing need for affordable housing in Los Angeles, Housing Diversity Corporation (HDC) has secured an additional $34.2 million in financing for its Vida DTLA development in Downtown Los Angeles’ South Park neighborhood, Commercial Observer reported.
Located at 1317 S Grand Ave., HDC’s Vida DTLA project, comprising 147 micro-units, is slated to open its doors on March 28, bolstering the city’s efforts to tackle housing affordability challenges. The financing package, revealed to include $22.6 million from the United Way of Greater Los Angeles and $11.6 million in equity raised through Pinnacle Partners for sponsor OZ Navigator, underscores a collaborative effort to provide accessible housing options in one of the city’s bustling districts.
Notably, HDC’s micro-housing approach aims to optimize space while ensuring affordability, with the average unit size coming in at less than 330 square feet. The Vida DTLA development caters to various income brackets, offering 88 market-rate units alongside options for individuals earning below 120 percent of the area median income. Additionally, federal housing choice vouchers will be accepted for 42 units, while the remaining 17 units will be designated for extremely low-income residents under the city’s Transit Oriented Communities (TOC) program.
The TOC program, aimed at incentivizing affordable housing developments near major transportation hubs, aligns with HDC’s mission to provide accessible living spaces in prime locations. Furthermore, the project benefits from federal opportunity zone tax incentives, allowing investors to defer taxes on capital gains, thereby fostering additional support for the initiative.
In addition to Vida DTLA, Housing Diversity Corp. also recently secured funding for Liv DTLA, a 227-unit affordable apartment project also in South Park. The property received $48.5 million in investments from the United Way of Greater Los Angeles and Arctaris Impact Investors for the development at 1411 South Flower St.
