Los Angeles – December 16, 2020 – SDS Capital Group’s SDS Supportive Housing Fund (“SHF” or “Fund”) has closed on its second investment. The Fund’s $6.7 million investment finances the construction of 40 one-bedroom permanent supportive housing units in South Los Angeles for Angelenos experiencing homelessness. Beyond the developer’s equity, the Fund is the only capital source that was tapped for the development.
Located in a low-income census tract with a 51% poverty rate, the site will be ground leased from the Harvest Tabernacle Bible Church. Harvest Tabernacle Bible Church has been a presence in South Los Angeles since 1976. Senior Pastor Dr. Donald Cook II underscored the benefit of the development, stating “We are so proud to be a part of this innovative approach to permanent supportive housing. Due to the SDS Supportive Housing Fund and RMG Housing, our parking lot will soon provide housing for those in our community who have been left behind. This approach benefits the tenants, the community and the church.” In addition to the 40 permanent supportive housing units, the building will feature ground-level community gathering space for local residents.
The SDS Supportive Housing Fund was launched to finance the construction of permanent supportive housing for individuals and families experiencing homelessness in California. The Fund provides 100% of the capital required for each project (except for the developer’s equity), which dramatically streamlines the financing for each development. No public-sector subsidies are needed for land acquisition or construction.
“We are very excited to be partnering with Harvest Tabernacle church and RMG Housing to help address Los Angeles’ homeless crisis,” said SDS Supportive Housing Fund CEO Deborah La Franchi. “The 40 new, high-quality permanent supportive housing units will transform the lives of the tenants living in this new apartment community – soon they will have a quality home and no longer be living on the streets of LA. In addition to elevating the lives of the residents, the development will be a catalyst for the surrounding community.”
In all Fund developments, residents will receive on-site case management services including 24/7 access to a live-in caseworker. These services will be provided to E. 55th Street residents by Homeless Health Care Los Angeles, which has provided behavioral healthcare and quality-of-life services to more than 190,000 of L.A.’s most marginalized individuals and families since 1985.
Presently capitalized at $104 million, the Fund has capacity to finance the construction of an estimated 1,200 new units of permanent supportive housing across California. SDS is targeting a total Fund capitalization of $150 million.
