City loans $6.1M to developers for 2 affordable housing units • Long Beach Business Journal

As the city works to strengthen its efforts to combat homelessness in Long Beach, it has given two affordable housing developers more than $6 million in loans to build nearly 200 units in Downtown and South Wrigley.

The Long Beach Community Investment Company, the city’s nonprofit organization that supports affordable housing development, awarded Holos Communities and Jamboree Housing Corp. $4 million and $2.1 million, respectively, on Wednesday, according to an announcement issued Friday.

“The city is fortunate to have much-needed financing and the means available to distribute it to affordable housing developers,” Development Services Director Christopher Koontz said in a statement.

Development Services managed the federal funding for Holos through the HOME Investment Partnership Program. The nonprofit North Hollywood developer plans to build 140 one-bedroom apartments at 521 and 527 E. Fourth St. .

The project will include two buildings, with 75% of the units reserved for people affected by homelessness.

A separate loan using federal grant funds will allow Irvine-based Jamboree to purchase and develop the vacant lot at 101 E. Pacific Coast Highway. . 52 units will be reserved for people experiencing or at risk of homelessness.

Both developments are expected to break ground in the summer of 2024.

“LBCIC continues to invest in opportunities like this that have the potential to provide housing for Long Beach residents,” LBCIC Chair Mary Castro said in a statement. “These developers are important partners – they truly exemplify the way the City remains committed to bringing people and communities together. “

The number of homeless people living on the streets of Long Beach has increased in recent years, increasing 62% from 2020 to 2022, according to city data. The increase in homelessness has become a cause of concern for some residents and businesses as well as city officials. Restaurants threatened to close, and the city The main library branch is temporarily closed due to security concerns.

Earlier this month, after community calls for more action, the Long Beach City Council declare a state of emergency for the homeless during its meeting on January 10. The commitment is to cut red tape, allowing staff to quickly address the issue.

Later that day, in his first State of the City address, Mayor Rex Richardson declared homelessness to be one of the main focuses of his office. Richardson announced the Mayor Funds to End Homelessnesswhich will provide small grants to Long Beach organizations that provide services such as rehabilitation assistance, housing, transportation, development, equipment replacement and relocation assistance.

Housing affordability in Long Beach and California as a whole is a major contributing factor to the state’s homelessness problem. The proposed affordable units are financed through public funds and are required by law to have fixed down payments, usually between 30% and 60% of the middle income, or no more than 30% of the resident’s income.

“This funding and important work reflects our sense of urgency to improve the city’s housing stock and support working families who need it most,” the Richardson said in a statement. “We are grateful to LBCIC and these development partners, who are working together to help Long Beach have safe, quality affordable housing that meets the needs of our community.”

Long Beach City Council declares state of emergency for homelessness

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