AHF: Healthy Housing Foundation Buys Skid Row Properties to Build New Affordable Housing
LOS ANGELES--(BUSINESS WIRE)--Mar 20, 2019--The Healthy Housing Foundation powered by AHF ( HHF ) closed escrow last Friday (March 15 th ) on the purchase of a commercial property with two retail spaces and adjacent undeveloped lot in downtown Los Angeles on Skid Row.
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AHF’s Healthy Housing Foundation purchased 2 properties in downtown Los Angeles, including 431 East 7th Street and an adjacent vacant lot, with plans to build new, affordable housing to address the homeless and affordable housing crises. The 2 parcels are next to Healthy Housing Foundation’s Madison Hotel, a 202-room single room occupancy (SRO) hotel which AHF renovated and repurposed as homeless and extremely low-income housing. (Photo: Business Wire)
HHF plans to build new affordable housing units for the homeless and extremely low-income individuals on the parcels, which are adjacent to its Madison Hotel. The Madison is an almost century old 202-room single room occupancy (SRO) hotel (built 1924)—and the first property that the Healthy Housing Foundation purchased, renovated and repurposed as affordable housing as part of it mission to help house the homeless and extremely low-income individuals.
The Healthy Housing Foundation also plans to build new as economically as possible and upend the head scratching Los Angeles norm of spending over half a million dollars per unit for ‘affordable’ housing. As reported in Los Angeles Magazine this month, “The average total cost for a unit of homeless housing in the HHH program — first projected at $350,000 — was more than $502,000 by the latest count, an increase of 43.4 percent.”(’ Will a Measure to Help L.A.’s Homeless Become a Historic Public Housing Debacle?’ March 2019).
“This is the first time in Los Angeles that Healthy Housing Foundation will build new rather than renovate and repurpose older un- and/or under-occupied SRO hotels and motels,” said Michael Weinstein, President of AHF. “Our target is to build this complex, which will have relatively small apartments and micro-units, for roughly $100,000 or less per unit, as compared to the $500,000 cost per ‘affordable’ unit under Measure HHH. The property we build here will eventually house hundreds, help revitalize a tough area of downtown and become the sixth complex in our affordable housing portfolio in greater Los Angeles.”
The two Skid Row properties HHF closed on last week include a commercial property located at 431 East 7 th St. comprised of a 7,182 square foot lot with 2,894 square foot, two-unit commercial building. One of the spaces is currently leased to a retail market; the other retail space is vacant.
The other property purchased is an adjacent undeveloped lot around the corner at 653 San Julian Street, a 3,969 square foot dirt lot. HHF’s intentions are to eventually raze the partially occupied commercial building and develop the properties—including the existing and adjacent parking lot of its Madison Hotel into extremely low-income or affordable housing units.
Healthy Housing Foundation powered by AHF was created last year to address the rampant affordable housing crisis sweeping the nation by providing fast, easy and compassionate access to affordable housing with a focus on addressing the needs of low-income individuals, struggling families and youth, with priority housing placement offered to those with chronic health conditions.
Properties repurposed to Healthy Housing Foundation’s mission include: the Madison Hotel1, in Downtown L.A., purchased in October 2017, followed quickly by the January 2018 purchase of the former Sunset 8 Motel, a 27-room motel 2 in the heart of Hollywood now known as the Sunrise on Sunset. The purchases and repurposing of the King Edward Hotel and the Baltimore Hotel, both in downtown L.A., followed later in 2018 (April and August, respectively). And in February 2019, Healthy Housing Foundation cut the ribbon on Casa del Corazon, a 37-room motel on Whittier Boulevard in East L.A. — the Foundation’s first housing venture on the Eastside—that it is repurposing as affordable housing. In Fort Lauderdale, Florida, HHF is under way with plans for a newly-built, state-of-the-art affordable housing complex that will include micro-units.
“We’re deploying several different approaches to address the housing crisis — new construction, micro-units, renovation of existing structures — we’re looking at all possibilities,” added Weinstein. “Bottom line: we need innovative, workable solutions that are economical and fast. Communities can’t wait any longer; the situation is simply too dire.”
AIDS Healthcare Foundation (AHF), the largest global AIDS organization, currently provides medical care and/or services to over one million individuals in 43 countries worldwide in the US, Africa, Latin America/Caribbean, the Asia/Pacific Region and Eastern Europe. To learn more about AHF, please visit our website: www.aidshealth.org, find us on Facebook: www.facebook.com/aidshealth and follow us @aidshealthcare.
1 The purchase price for the Madison Hotel was $7,575,000, (the parking lot was $450K – total $8,025,000.00 less a repair credit of $25K and a donation of $50K to AHF – net price $7,950,000) or approximately $36K per room or unit.
2 The purchase price for the 27-room Sunset 8 Motel was $4.6 million, or $170,370 per room or unit.
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CONTACT: Ged Kenslea,
Senior Director, Communications
Associate Director, Partnerships & Communications
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: OTHER CONSUMER PUBLIC POLICY/GOVERNMENT STATE/LOCAL PHILANTHROPY CONSTRUCTION & PROPERTY COMMERCIAL BUILDING & REAL ESTATE RESIDENTIAL BUILDING & REAL ESTATE CONSUMER FOUNDATION
SOURCE: Healthy Housing Foundation
Copyright Business Wire 2019.
PUB: 03/20/2019 07:24 PM/DISC: 03/20/2019 07:24 PM