PANORAMA CITY : City OKs Loan for Blythe Street Project

The Los Angeles City Council approved a $2.6-million, low-interest loan Friday for a partnership that is building a housing project on Blythe Street in Panorama City, a neighborhood plagued by gang violence.

The $7-million project will include 50 family-sized units, a recreation room, basketball court, jogging track and a 2,000-square-foot community room. Supporters say it is a desperately needed facility for poor families in the area.

Most of the balance of the financing for the project will come from federal housing tax credits allocated to the project. Investors who expect to owe income tax through the next 10 years pump money into the housing project in lieu of the tax payments.

Last month, workers began to tear down 15 dilapidated apartments at 14540-14600 Blythe St. that will be replaced by the new housing project. The project is expected to be completed next year.