Mayor Karen Bass Joins Civil Rights Activist Dolores Huerta, Councilmember Curren D. Price and SDS CEO Deborah La Franchi at Official Opening of 40-Unit Namesake Dolores Huerta Apartments
LOS ANGELES, April 27, 2023 /PRNewswire/ — Los Angeles Mayor Karen Bass, civil rights leader Dolores Huerta, Councilmember Curren D. Price, Jr,. Veronica Lewis, Director, Homeless Outreach Program Integrated Care System (HOPICS) and John Yamamoto, Vice President, Community Health and Government Relations, Kaiser Permanente, Southern California, are scheduled to join SDS Capital Group Founder & CEO Deborah La Franchi along with students from Dolores Huerta Elementary School for the grand opening of Dolores Huerta Apartments, the first completed permanent supportive housing building funded by the $185M SDS Supportive Housing Fund.
This 40-unit permanent supportive housing (PSH) project, located at 5215 South Figueroa Street, was built with a $6.6 million investment from the SDS Supportive Housing Fund (SHF or Fund). The SHF’s innovative approach to PSH relies on using a first of its kind private equity funding model to provide capital for PSH developments allowing for quicker project financing and construction turnaround at significantly lower costs than traditionally funded public housing developments.
To date, the Fund has financed ten PSH projects which will result in a total of 760 PSH units upon completion.
The SDS Supportive Housing Fund is on track to finance approximately 30 projects that will result in the construction of an estimated 2,500 PSH units over the next six years.
“Every Angeleno deserves to live in a home they call their own,” said La Franchi. “I witness the tragedy of our unhoused residents every day. Over the past few years, this has motivated me and my team to develop a private equity fund that finances the development of housing for the unhoused that is significantly lower in cost, built at a faster pace, with scaled construction that allows for the development of even more units. Today, we are prepared to welcome 39 formerly unhoused Angelenos to their new home at this transformational chapter of their lives.”
The SDS Supportive Housing Fund is a new high-speed, low-cost financing model developed by SDS Capital Group to fund RMG Housing’s PSH developments that support people experiencing homelessness. The core model uses zero taxpayer dollars for land acquisition or construction.
“Since coming into office, I have been firmly committed to supporting the building of housing for the most vulnerable residents in my District,” said LA City Council President Pro Tempore Curren Price. “Our partnership with SDS Capital and RMG Housing has resulted in an exemplary public and private sector collaboration that work together with the common goal of housing the unhoused of our city and helping them thrive and prosper by providing much-needed support services. We look forward to continuing our fruitful collaboration with other projects in Council District 9 and beyond to benefit marginalized Angelenos everywhere.”
What distinguishes SHF from other private equity funds is a commitment to investing exclusively in PSH projects that are financially sustainable over the long term. SHF’s total unit costs are significantly less than the $600,000 average unit costs for similar units in the current California market.
“In order to confront the homelessness crisis head on and see results, we must build more housing — that’s why today’s opening is so important. I am honored to participate in today’s event, and to work with leaders like Dolores Huerta — one of the most important and accomplished champions for justice in this country — to bring a new day to our city,” said Los Angeles Mayor Karen Bass. “Thank you to SDS Capital Group, RMG Housing and all of our partners who have worked to make this opening possible — together, we will bring an end to this crisis.”
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SOURCE SDS Capital Group