A Community of Friends (ACOF) is one of the largest affordable housing developers in Los Angeles County, and in 2015, they partnered with NeighborWorks Capital to acquire land in Huntington Park, CA. to construct Huntington Square, a mixed-use development with affordable apartments and commercial space. Unfortunately, progress was threatened when the city expressed concern over the use of the property. Planning approvals and policy changes can be serious obstacles for tax credit-funded projects, but NeighborWorks Capital was able to help by extending ACOF’s loan and providing a new loan to see the project through its tax credit equity application and closing process.
The project continued to face resistance and delays resulting in additional loan extensions.
ACOF considered selling the property but after much deliberation, they decided to continue pushing forward. Huntington Park needed affordable housing. In the last 20 years, only two affordable developments (43 apartments total) have been built. ACOF remained focused on its goal and presented a revised development plan that the city could ultimately support.
“We cannot do what we do without a lending partner who is understanding and supportive of our work. NeighborWorks Capital provided the patient capital that was required to see this project through to completion.”
Huntington Square will now provide 48 affordable apartments for low-income seniors and formerly homeless senior veterans, including people experiencing chronic homelessness and those living with a mental health disability. ACOF also partnered with another developer to include the development of nine affordable townhomes for first time homeowners.
In 2022, ACOF refinanced its existing acquisition and predevelopment loans with NeighborWorks Capital and increased its predevelopment loan amount to cover predevelopment expenses to support the project’s construction closing. ACOF broke ground on Huntington Square in early 2023, and the project is scheduled for completion in late 2024.
ACOF’s Dora Leong Gallo spoke with PBS about the obstacles preventing homeless veterans from finding housing in Los Angeles. Watch the segment >
