The Los Angeles City Council on Tuesday approved more than $17.5 million in emergency loans for eight affordable and supportive housing developments that are facing last-minute funding gaps due to contractor failures, weather damages and rising costs.
The funding, awarded through the city’s Fast Track Solutions Program, is intended to help projects that are already underway recover from unexpected setbacks and stay on schedule for completion. The eight developments, spread across six Los Angeles City Council districts, are expected to deliver a combined 515 housing units, many designated for people experiencing homelessness.
A spokesperson for the Los Angeles Housing Department (LAHD) said in a statement, “LAHD is grateful that the City Council took action today to move forward the next round of Fast Track funding, which will move forward several projects and will result in 515 units of affordable housing.”
Tuesday’s vote authorizes the Housing Department to finalize loan agreements with each developer and initiate the disbursement of funds through the City Controller. This marks the third round of Fast Track awards, and the final one planned for the immediate future, according to the department. Since launching in 2023, the program has awarded more than $62 million across 26 projects.
Among the projects receiving funding is Oatsie’s Place, a 46-unit permanent supportive housing complex in the Lake Balboa neighborhood (Council District 6) that is currently 84% complete, after sustaining significant water damage during severe storms in winter 2023.
The project, developed by Daylight Community Development and Decro Corporation, had only about 45% of its insurance claim covered, resulting in a multimillion-dollar gap, according to city documents.
City reports show the developer terminated their general contractor, filed insurance claims, secured a $2 million bridge loan and obtained additional bond financing, but still needed an additional $3.5 million in city support to move forward. The project is now aiming to meet its December 31, 2025 completion deadline.
Another Daylight-Decro project, McDaniel House in Koreatown (Council District 10), was also awarded $3.5 million. The 47-unit modular development was 74% complete when heavy rains during the winter of 2023 caused severe damages to pre-installed units on site.
Cost overruns – due to the storm damage, contractor issues and the need to make repairs onsite under prevailing wage rules (which require wages comparable to union rates on public funded projects) – pushed the total development to cost around $41.8 million, up from an earlier estimate of $31.3 million. The project is now 80% complete and aiming for a January 2026 completion date with the help of Fast Track funds.
According to city documents, projects were selected based on the amount of outside funding at risk of being lost if the project couldn’t move forward, and on how efficiently city funds could help fill the remaining gap.
The projects are backed by a mix of local and state funding sources—including Proposition HHH funds, state SB2 housing dollars, the city’s Affordable Housing Linkage Fee program, Low-Income Housing Tax Credits and other permanent or bridge financing.
The largest awards for this round of the Fast Track program go to projects in Council Districts 6, 10 and 1.
In addition to Oatsie’s Place and McDaniel House, other funded developments include:
- Red Tail Crossing (102 units, CD11) – $2.1 million
- Alvarado Kent Apartments (81 units, CD13) – $2.38 million
- Miramar Gold (94 units, CD1) – $3.4 million
- The Azalea (61 units, CD9) – $2.1 million
- The Arlington (84 units, CD10) – $500,000