November 2nd, 2023 marked the grand opening of the supportive and affordable rental community Mariposa Lilly, located in the Koreatown/ Pico Union area of Los Angeles.
Featuring 41 units, the art deco-inspired project includes five stories built over one story podium and a subterranean garage on a city-owned lot located at 1047-1055 S. Mariposa Avenue. Twenty of the units provide permanent supportive housing for homeless individuals, while twenty were made available through a lottery process to households earning 60% of the area median income. One unit is reserved for an on-site property manager. Of the twenty supportive housing units, five are reserved for individuals with mobility disabilities and two support hearing/vision disabilities; with a total land area of 11,807 square feet, the total floor area ratio (FAR) is 3.21, while the 41 total units generates a density of 151 units per acre.
The project was sponsored by the Los Angeles Housing Department (LAHD) and the developer was the non-profit West Hollywood Community Housing Corporation.
KMA was the financial advisor to LAHD and prepared a loan committee report summarizing the transaction. KMA’s tasks included review of the proposed deal terms, financial gap analysis and supporting information provided by Developer. As is common with most affordable housing projects, multiple federal, state, and local funding sources were utilized. KMA analyzed deal terms including a 99-year ground lease and funding from tax exempt bonds, tax credit equity, a City of Los Angeles Proposition HHH supportive housing loan through the LAHD, Affordable Housing Program loan from FHLB of San Francisco, a No Place Like Home loan from HCD, and a deferred developer fee/ developer fee contribution.
KMA also prepared the requisite 33433 report which summarizes the financial terms associated with the disposition transaction, because the City was conveying a site formerly acquired by the CRA/LA for redevelopment purposes.