Brief

The City Administrative Officer submitted a report on July 23, 2025, recommending additional allocation of Proposition HHH bond funds for the PATH Villas Hollywood Project as part of Round 3 of the Affordable Housing Sustainable Communities Program. The Housing and Homelessness Committee approved the item on July 30, 2025, and the full City Council adopted it on August 12, 2025, by a vote of 14-0-1. The file was transmitted to the Mayor on August 13, 2025, and council action became final on August 22, 2025. Recent activity shows the Los Angeles Housing Department submitted status reports in May 2026 that were referred to the Housing and Homelessness Committee for ongoing oversight.

Full summary

This file centers on PATH Villas Hollywood, a completed 60-unit permanent affordable housing development at 5627 Fernwood Avenue in Council District 13, developed by PATH Ventures. Of the 60 units, 59 are reserved for households earning below 50% of the Area Median Income and are supported by project-based housing vouchers. The project received a 2018 state Affordable Housing and Sustainable Communities grant totaling $8.3 million, which funded both the housing construction and required transportation and streetscape improvements nearby. While the housing building was completed in August 2023, the City-managed transportation infrastructure work has remained unfinished due to a major cost overrun. The Bureau of Engineering completed engineering designs and ran a competitive bid process, receiving three proposals. The lowest qualified bid, from Axiom Group, came in at $5.68 million for construction alone. With contingency, street resurfacing, transportation work, construction management, and administrative costs factored in, the Bureau of Engineering pegged total project cost at roughly $8.65 million against an available AHSC balance of only $2.56 million — a shortfall of more than $6 million. To close the gap, the City drew on multiple sources: $1.55 million in Proposition HHH funds approved in the original August 2025 Council action, roughly $1.2 million in Capital and Technology Improvement Expenditure Program funds identified by the Bureau of Engineering, and the remaining AHSC grant balance. Even after those contributions, a gap of $3,345,228 remained. The revised Los Angeles Housing Department report submitted in May 2026 — which corrected technical errors in an earlier March 2026 report — asks the Council to authorize that additional $3.34 million from Proposition HHH program income funds, drawn from Fund No. 66H, to fully close the shortfall and allow construction to proceed. LAHD General Manager Tiena Johnson Hall signed the transmittal. The total funds to be transferred across all sources amounts to roughly $4.9 million, disbursed to the Bureau of Engineering, Bureau of Street Lighting, Bureau of Street Services, and the Department of Transportation for their respective scopes of work. LAHD notes there is no impact on the General Fund. The May 2026 report also flags a broader challenge: the City is a co-applicant on 26 AHSC projects statewide, and 15 of them are in pre-design with bid releases expected within a year. LAHD, the Bureau of Engineering, and the Mayor's office are actively working to identify funding for anticipated shortfalls across that pipeline. The PATH Villas Hollywood infrastructure is expected to break ground shortly after the additional funds are approved, with construction estimated to take 10 months. The revised LAHD report is currently pending before the Housing and Homelessness Committee, which scheduled it for a hearing on May 20, 2026.

Activity (13)

• 2026-05-19 Los Angeles Housing Department document(s) referred to Housing and Homelessness Committee.
• 2026-05-18 Document submitted by Los Angeles Housing Department, dated May 18, 2026.
• 2026-05-15 Housing and Homelessness Committee scheduled item for committee meeting on May 20, 2026.
• 2026-04-23 Los Angeles Housing Department document(s) referred to Housing and Homelessness Committee.
• 2026-04-21 Document submitted by the Mayor, Los Angeles Housing Department report dated March 17, 2026.
• 2025-08-22 Council action final.
• 2025-08-13 City Clerk transmitted file to Mayor. Last day for Mayor to act is August 25, 2025.
• 2025-08-12 Council adopted item, subject to reconsideration, pursuant to Council Rule 51.
• 2025-08-08 City Clerk scheduled item for Council on August 12, 2025.
• 2025-07-30 Housing and Homelessness Committee approved item(s) .
• 2025-07-25 Housing and Homelessness Committee scheduled item for committee meeting on July 30, 2025.
• 2025-07-24 HHH Administrative Oversight Committee document(s) referred to Housing and Homelessness Committee.
• 2025-07-23 Document(s) submitted by City Administrative Officer, as follows:Proposition HHH Administrative Oversight Committee report, dated July 23, 2025, relative to additional allocation of HHH funds for the PATH Villas Hollywood Project.

Documents (7)

• 2026-05-18 Revised Report from Los Angeles Housing Department · report
• 2026-03-17 Report from Los Angeles Housing Department · report
• 2025-08-22 Mayor Concurrence/Council Action · other
• 2025-07-30 Report from Housing and Homelessness Committee · report
• 2025-07-30 Speaker Card(s) · speaker_card
• 2025-07-26 Communication(s) from Public · communication
• 2025-07-23 Report from Proposition HHH Administrative Oversight Committee · report