AIDS Healthcare Foundation (AHF) and the Coalition to Preserve LA (CPLA) are claiming a victory for affordable housing in the never-ending battle to preserve, create and secure affordable housing in Southern California, one of the most rent-burdened areas in the country. The two nonprofit groups reached a legal settlement this week with the developer of Hollywood’s Sunset Gordon Tower, a 22-story apartment complex in the heart of Hollywood.
Under the settlement, 5929 Sunset (Hollywood) LLC (a project of CIM Group), agreed to lower the affordability levels of the 45 rent restricted units that are set aside in the 299-unit building. They also agreed to provide AHF and CPLA copies of reports they are required to send to Los Angeles Housing & Community Investment Department (LAHCID) with the affordability levels so there may be a third-party mechanism to ensure oversight and accountability.
“This is a welcome victory in the ongoing battle to try and preserve and create affordable housing solutions across Los Angeles,” said Michael Weinstein, president of AHF. “Given the dire state of housing affordability today, we thank 5929 Sunset LLC for its flexibility and for significantly reducing income thresholds tied to area median income for the 45 units set aside as affordable housing at Sunset Gordon. We remain deeply concerned about gentrification and its impact on long-established communities, particularly low-income and communities of color. Nevertheless, this settlement allows both sides to claim victory, as the project may now also move forward to completion and occupancy.”
Under the legal settlement reached earlier this week, income thresholds for the 45 affordable apartments will be lowered as follows:
Very-low Income tenants: the maximum allowable income for 15 units drops from 50% of Area Median Income (AMI) to 40% of AMI. So, for example, these units must be affordable to an individual making $29,320 per year as opposed to the prior limit of $36,650 per year.
Moderate Income tenants: the maximum allowable income for 15 units drops from 120% of AMI to 80% of AMI so, for example, these units must be affordable to individuals making $58,640 per year as opposed to the prior limit of $87,960.
Work Force Income tenants: the maximum allowable income for 15 units drops from 150% of AMI to 110% of AMI
