Funding Secured For 5-Story, 36-Unit Affordable Housing In NoHo

NORTH HOLLYWOOD, CA — Affordable housing developer Decro announced Wednesday that it has raised $110 million in private and public funding to build three affordable housing sites, including a $24 million 40-unit apartment building in North Hollywood.

The project, known as NoHo 5050, will provide affordable and permanent supportive housing at 5050 N. Bakman Avenue, replacing a pair of 1950s-era duplexes. Plans call for a five-story building with 28 one-bedroom units and eight two-bedroom units. It will also include a learning center, community room, supportive service spaces, landscaped open space, bicycle storage, a laundry room, and a manager’s unit, according to a description from Decro.

The apartments will cater to households earning at or below 50-60% of the Los Angeles-area median income level, which comes to roughly $40,000 a year per household, according to a staff report from the Housing and Community Investment Department.

In August, the Los Angeles City Council approved the release of up to $11.25 million in tax-exempt bonds for the construction of the project, according to a report in Urbanize Los Angeles. Decor CEO Ted Handel said his company was able to raise $110 million for three projects through Proposition HHH, a voter-passed initiative to use $1.2 billion to build 10,000 affordable and supportive housing units, and the statewide No Place Like Home program, which provides up to $2 million in bond proceeds to invest in permanent supportive housing.

NoHo 5050 is also funded by construction and permanent loans from KeyBank, federal low-income housing tax credit equity from R3ed Stone Equity and California low-income housing tax credit equity from Sugar Creek Capital, according to City News Service.

The two other units are the $61.6 million Brine Residential, which will provide 976 units on a 97,000-square-foot campus in Lincoln Heights, and the $23.9 million McDaniel House in Koreatown, which will provide 47 units in a modular construction building.
Three other projects are currently under construction by Decro, with a total of 138 units in the pipeline, and a fourth project with 46 units is about to begin construction. Decro owns more than 1,000 affordable housing units in California and Florida.

— Michael Wittner and City News Service contributed to this report.