For the second time, Century and Bridge Housing partnered in a creative financing structure to close predevelopment financing on a publicly-owned site, this time with LAUSD under the Workforce Housing Joint-Use Program, on unused land at Gardena High School. As with the previous deal in Pasadena, Century’s $1,000,000 predevelopment loan is secured by a letter of credit, rather than a typical deed of trust in the development site. Bridge Housing, one of the largest affordable housing developers in California, will build Sage Apartments with 90 homes for families earning less than $57,000 a year.
This loan was also the most recent use of the New Generation Fund, a consortium of CDFIs, commercial banks, foundations, and the City of Los Angeles providing low-cost acquisition and predevelopment financing to affordable housing developers. The unusual collateral structure was possible because of Bridge Housing’s track record of development success and financial strength.