This is an update to our original blog post below. ED1 was extended to 9/30/2024 as of 7/1/2024. However, it was further watered down by some new requirements, including no longer being able to redevelop a property of more than 12 existing RSO units. Read the other updates as outlined here: https://planning.lacity.gov/odocument/4bdff0d5-a458-4bcc-a8c5-451e4af45ea7/ED1_revised_memo_3.pdf
Reach out to AERO to understand how these changes may affect your project.
Orignal blog post follows…
Introduced in late 2022, ED 1 is doing exactly what it promised to do—make the development of affordable housing a priority in LA. However, maintaining momentum is tenuous. Because of its nature as an Emergency Declaration, ED 1 has a limited shelf life, and with each 30-90 day extension often comes slightly different parameters for projects to adhere to. Complex regulations and ever-changing deadlines can slow down even the most experienced developers. At AERO, we help navigate these complexities so you can focus on what matters most: creating housing with an ROI.
Neighborhood Tiers: Affordable housing rent caps vary by neighborhood in LA. We'll help you develop a housing plan that considers the specific income levels of your target neighborhood and help build an approach to the unit mix that maximizes your pro forma.
Rent Structures & Regulations: Our team is knowledgeable in designing to meet covenant rents and voucher and can explain how they might impact your project's financial viability.
Complying with Affordability Standards: AERO is well-versed in the Section 8 inspection checklist and other requirements for building affordable housing. We design with these regulations in mind, ensuring a smooth approval process for your project.
180-Day Vesting: AERO can help you secure 180-day vesting with the Department of City Planning, minimizing the risk of regulation changes impacting your project down the line.
Parking Impacts: While ED 1 does not require on-site parking, funding sources can sometimes nullify this exemption. We can adapt the traditional ED 1 model to satisfy your project objectives.
AERO has a successful track record of completing affordable housing projects, including 12 ED 1 developments. One project reached “Ready To Issue” in just four months, unheard of in LA! We believe developing affordable housing is rewarding but shouldn't be overwhelming. At AERO, we have the expertise to answer your questions and guide you through every step of the process.
Are you curious about how to take advantage of ED 1 while it’s still a viable option? Contact us for a free consultation, and keep in mind that the current Emergency Declaration expires July 18, 2024.