News
Gateway cities band together to bridge housing funding gaps
January 1, 2024
With interest rates at a historic high, many developers are having trouble finding the money to finish or even start housing construction. The Gateway Cities Council of Governments — the umbrella organization for the 27 cities in Southeast Los Angeles County — hopes its new affordable housing trust can help bridge those funding gaps and move it closer to fulfilling its state-mandated housing planning goals.
A housing trust can apply for funding that cities might not be eligible for or may not have the resources to pursue individually. A trust also allows cities to pool financial resources and share technical expertise. California has several dozen affordable housing trusts, including in nearby San Gabriel Valley, Orange County, and Ventura County.
$5 MILLION IN STATE FUNDING FOR GATEWAY CITIES AFFORDABLE HOUSING TRUST
November 22, 2023
The Gateway Cities Affordable Housing Trust (Trust) was awarded a five-million-dollar ($5 million) grant as part of a competitive grant program through the Southern California Association of Governments (SCAG).
The Trust will leverage the $5 million with an additional $5 million from non-profit financial entities in Southern California. The Trust will utilize this $10 million for a new revolving low-interest loan program for acquisition and pre-development expenses. The funding will help cities and developers identify, entitle, and secure construction and permanent financing for affordable housing development projects. The anticipated outcomes include funding seven affordable housing developments with 679 affordable housing units by 2028.
“This funding will bring much-needed financial support to our cities and developers to build high-quality affordable housing in our region. We hope that this program will provide invaluable early money to developments, increasing their competitiveness for other funds, reducing delays and costs, and speeding up construction so that our region can respond to this housing affordability crisis,” said Fernando Dutra, Trust Chair and Whittier Councilmember.
The funds awarded from SCAG are designated to support transformative, innovative finance strategies that can be leveraged to increase supply, choice, and lasting affordability, and to achieve a mix of housing types in the greater Southern California region.