Just weeks after announcing buying a 282-unit apartment complex in Orange County to preserve it as middle-income housing, BLDG Partners is announcing a second purchase in Southeast Los Angeles County.
The Beverly Hills-based real estate firm, in partnership with the California Municipal Finance Authority, has acquired the Enclave Apartments at 13801 Paramount Boulevard in the City of Paramount. The $128.5-million transaction will allow all 306 apartments to be preserved for rent by households earning between 80 and 120 percent of the area median income level going forward.
Existing tenants at the property who fall within the eligible income bracket will immediately see their rents reduced, while those who exceed the limits will be allowed to remain in place until choosing to leave. However, new leases will be reserved for households earning between 80 and 120 percent of the area median income.
“The City of Paramount has been a committed partner in our efforts to preserve and expand the supply of low- and middle-income housing,” said BLDG Partners principal Guy Penini in a statement. “With this transaction, Paramount will be able to ensure the availability of attainably-priced, quality housing for the long-term.”
“This innovative program produces so many benefits for our City,” said Paramount Mayor Brenda Olmos in a news release. “Middle-income households can include teachers, health care providers, and first responders, often at the beginning of their careers. In Paramount, we’re proud to offer these vital members of the community a safe, high-quality place to live at an affordable price.”
The California Municipal Finance Authority's Essential Housing Program, which was launched in 2019, allows private developers to acquire market-rate units to preserve them as "workforce" housing using state subsidies. Properties purchased through the program are subject to limits on annual rent increases, and displacement of existing tenants is forbidden.
