L.A. Housing Needs Attention

The crisis in affordable housing is a statewide problem, but Los Angeles faces special challenges. Its population of poor and working-poor families continues to rise, but public and private resources to finance urban housing are shrinking. The problem deserves attention from Gov.-elect Gray Davis as well as local authorities.

More state leadership and funding, including perhaps a bond issue, are needed. And the state’s allocation of federal housing tax credits to development firms should be based on their willingness to take on projects in poor neighborhoods that need housing. The current lottery allows a builder to vie for tax credits without regard to where affordable housing is most needed.

Locally, the city of Los Angeles needs to ensure that more federal community development block grants are dedicated to housing. Only 2.5%, or $75 million, of L.A.’s budget goes to affordable housing, compared with New York City’s 11% ($500 million) and Chicago’s 6% ($180 million).

Nonprofit, grass-roots community development corporations (CDCs) are attempting to fill the void. One noteworthy project called the Neighborhood Turnaround Initiative has pooled $4 million from federal grants, foundations and corporate sources to provide seed funds for projects proposed by seven local CDCs. The $4 million will finance preliminary work--land acquisition and hiring project managers, typically the most difficult project phases to fund. If the projects are completed, the $4 million will have jump-started $74 million worth of affordable housing and retail projects in Central and South-Central Los Angeles, East L.A., Little Tokyo and Venice. Some will include child care and job training.

A recent report by the Housing and Urban Development Center cited Los Angeles, Anaheim, Sacramento, San Bernardino, San Diego and San Francisco as having the most acute affordable housing shortages. That’s a call for action.