Faced with a funding gap due to rising interest rates and construction costs, the developers seeking to build affordable and permanent supportive housing on a long-vacant lot in Broadway-Manchester were just tossed a lifeline by the L.A. City Council.

At its meeting last week, the Council voted to adopt a motion introduced by 8th District Councilmember Marqueece Harris-Dawson which would allocate up to $7 million in city money toward the construction of the Manchester Urban Homes, a proposed project at 8727 S. Broadway. A joint venture from Abode Communities and Neighborhood Housing Services of L.A. County, the project would rise from a 2.7 acres site at northwest corner of 88th Street and Broadway, creating a total of 122 residential units - including a 76-unit apartment building facing Broadway and 46 townhomes at the rear of the site. Plans also call for street-fronting amenities, retail space, and parking for 69 vehicles.

Rendering of the Manchester Urban Homes looking northwest from 88th and BroadwayJohn V. Mutlow Architects

John V. Mutlow Architects, Inc.  is designing the development, which would include a four-story structure facing Broadway and a series of townhomes located in eight two-story buildings to the west. The apartments are planned in a mix of one-, two-, and three-bedroom floor plans, ranging from 633 to 1,176 square feet in size. The project is intended to serve households earning up to 60 percent of the Los Angeles area median income.

8721-8765 S.Broadway, 315-331 W 88th Street and 320-330 W 87th StreetGoogle Maps

"The construction costs for Manchester Urban Homes increased by $9 million between the initial bid in 2021 and the closing bid in 2022 due to supply chain disruptions, shortage of skilled labor and increased material costs," reads the motion from Harris Dawson. "At the same time the construction loan interest rates increased such that the project costs increased by $5.4 million. With value engineering and additional funds such as State Housing and Community Development Infill Infrastructure Grant funds, an increase in the tax exempt bond, and a deferral of the developer fee, the gap was reduced to $7 million."

The new allotment of funds courtesy of the City Council is intended to allow Abode and Neighborhood Housing Services to maintain full funding for the project, and thereby retaining previously awarded bonds and Low Income Housing Tax Credits.

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