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2024 Grants Challenge

Help Create New Affordable Housing in LA

Beacon Housing is requesting funding towards the creation of two new affordable housing units in Los Angeles through the addition of gentle density at a single-family property we have acquired. Our plan is to rehabilitate the structure and add an accessory dwelling unit, which will provide two low-income households with affordable homes. This project will showcase how creating ADUs specifically for affordable housing can be financially feasible.

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What is the primary issue area that your application will impact?

Affordable housing and homelessness

In what stage of innovation is this project, program, or initiative?

Expand existing project, program, or initiative (expanding and continuing ongoing, successful work)

What is your understanding of the issue that you are seeking to address?

Los Angeles is facing an affordable housing crisis. There is an estimated shortage of 500,000 affordable homes in Los Angeles County, and supply is falling far behind demand. A very low-income household is at far higher risk of being severely housing burdened (spending more than 50% of their income on housing cost) than a moderate-income household, which impacts their ability to equitably access other necessities such as food or healthcare. Housing cost burden also has a disproportionate impact on communities of color: 45% of Black renters in Los Angeles spend more than half of their income on housing. Although it is clear that there is no single solution to this crisis, there is an urgent need for a multi-level approach to increase the supply of affordable housing, and that small-scale developments such as the addition of gentle density to single-family properties via accessory dwelling units can provide a viable solution which can be achieved more quickly and cost-effectively.

Describe the project, program, or initiative this grant will support to address the issue.

In this project, Beacon Housing will seek to add gentle density to the single-family properties we have acquired in the City of Los Angeles by leveraging the legislative easing around accessory dwelling units. The funding would partially fund the rehabilitation of the existing single-family home and the addition of an attached accessory dwelling efficiency unit to create a total of two units upon completion. The units will serve low to moderate income households, and our target tenant populations (with whom we already currently work) will include formerly homeless, survivors of domestic violence, and transition-aged youth. The project’s scope of work will feature extensive renovations to make the property habitable along with the addition of the ADU, including new plumbing and electricals, HVAC, doors and windows, seismic retrofitting, cabinetry, paint, flooring, fixtures, appliances, and landscaping. When completed (expected in 2025), we will be able to provide two low-income households with a safe and affordable home. The tenants would have access to optional support services, such as case management as well as housing readiness and financial literacy training to support their housing retention. The property can also have a system-wide impact by serving as a showcase for how small scale, community-oriented developments that add gentle density to a site through thoughtful land use can provide a much-needed housing solution.

Describe how Los Angeles County will be different if your work is successful.

Although this project involves the creation of only two new units, its successful implementation will showcase how the addition of gentle density to a single-family property, done thoughtfully, can viably more affordable housing supply in Los Angeles County. Such demonstrations are needed because although ADUs have surged in popularity amidst the legislative easing of the last few years, the creation of ADUs specifically for affordable housing remains relatively infrequent, with many new accessory dwelling units being leased at market-rate. Through our work, we have met with a number of mission-driven nonprofit and faith organizations who already own single family and small multifamily properties who would be interested to add gentle density to their sites as affordable housing, but are not sure if such a project would be feasible. The success of this project could serve as a blueprint for other entities considering similar ventures for their own properties.

What evidence do you have that this project, program, or initiative is or will be successful, and how will you define and measure success?

The success of this project will be measured in multiple stages, looking not only at housing placement but also retention, as well as the wider impact of such a project working as a showcase for other properties. First, we will consider success based on the successful creation and lease-up of two new affordable housing units to a household who is low-income and/or formerly homeless, survivors of domestic violence, or transition-aged youth. Subsequently, we will track success based on the stable retention of the units annually, as well as on the replication of this project on other sites through our networks with other housing-related entities. We will also look qualitatively at the impact of having housing on the tenants through tenant interviews and annual surveys to ensure that the housing and services offered remain high-standard and relevant.

Approximately how many people will be impacted by this project, program, or initiative?

Direct Impact: 8.0

Indirect Impact: 80.0