Better Angels Proposes Affordable Housing Development in LA

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A conceptual design of the proposed affordable housing units at the corner of Wilshire and Crenshaw.

News Summary

Better Angels, founded by tech entrepreneur Adam Miller, has unveiled an innovative proposal to develop 212 affordable housing units and a medical office at Wilshire and Crenshaw in Los Angeles. The plan aims to tackle housing issues without taxpayer reliance, demonstrating profitability in affordable housing through private investment. This proposal is part of a broader effort to shift focus from luxury projects to affordable solutions, while also addressing homelessness with initiatives like the STEP Fund. However, local groups have raised concerns regarding regulatory compliance in the proposed developments.

Los Angeles – Better Angels, a nonprofit organization founded by tech entrepreneur Adam Miller, has submitted a groundbreaking proposal for a development project aimed at providing affordable housing at the corner of Wilshire and Crenshaw. This proposal comes in response to Metro’s call for bids to develop surplus property in the area.

The Better Angels plan includes constructing 212 affordable housing units and a medical office building, all without relying on taxpayer funds. The organization has outlined a strategy to cover 30% of the project’s capital as equity and finance the rest through conventional loans. This approach is expected to expedite construction and reduce costs compared to traditional affordable housing models that typically depend on government grants and tax credits.

Adam Miller emphasized that the goal of this initiative is to prove that affordable housing can be profitable and can effectively tackle the ongoing housing crisis through innovative capitalistic solutions. Better Angels has also established a $300 million investment fund aimed at encouraging for-profit developers to shift their focus from luxury projects to affordable housing initiatives.

In addition to the Metro proposal, Better Angels is actively involved in several other housing projects in the area. They are bidding on a redevelopment project for a former Kaiser Permanente facility in Pasadena that would transform the site into a housing and mental health hub comprising 300 mixed units. Furthermore, the organization has a separate proposal for a 54-unit student housing project designed for Los Angeles City College students who are in or transitioning from foster care.

The announcements regarding the Metro and Los Angeles City College District (LACCD) bids are expected in the summer, while the Pasadena project bidding will conclude in May. Alongside these proposals, Better Angels continues to manage ongoing small-scale projects, including a 51-unit apartment building replacing an abandoned home in South Los Angeles and an eight-story 72-unit building in Westchester, where groundbreaking is anticipated later this summer.

The total cost for the Westchester project is estimated at $15.5 million, and it will cater to tenants with rents set higher than the very low-income levels typically covered by tax-credit projects. The proposed rent for the low-income units in the Westchester location is projected at approximately $2,000, which remains competitive compared to rents for new buildings but exceeds the standard thresholds set for tax-credit housing.

Within the Metro proposal, Better Angels has outlined plans for 170 units priced at 80% of the area median income and 42 units at 110% of the median, which are categorized as workforce housing. In contrast, competing proposals primarily depend on tax-credit financing and propose lower income units at 30-60% of the area median income.

As part of its vision, Better Angels aims to secure guaranteed affordable housing solutions for homeless individuals through master leases with nonprofit organizations or indirectly via federal Section 8 vouchers. Additionally, the organization is committed to promoting intergenerational wealth building by collaborating with local developers and assisting long-standing homeowners in South Los Angeles in converting their properties into multi-family units.

To help prevent eviction, Better Angels has introduced initiatives such as the STEP Fund, which provides no-interest micro-loans to those in financial distress. The establishment of Better Angels United Inc. consolidates various homelessness initiatives launched by the Millers and further enhances the organization’s impact.

The plans proposed by Better Angels have been facilitated by both state and local incentives aimed at affordable housing construction, including streamlined approval processes initiated by Mayor Karen Bass. However, these proposals have raised concerns among local neighborhood groups, specifically about adherence to the Park Mile Specific Plan, which governs the development in the area. The Wilshire Homeowners Alliance has expressed concerns that some proposals may not meet these regulations and has requested additional time for a comprehensive review before final decisions are made.