Brief

Councilmember Marqueece Harris-Dawson introduced a motion on April 29, 2026, regarding a permanent housing development at 3501 Western Avenue in partnership with Special Services Groups, Inc. (SSG HOPICS). The project involves major demolition work. Council adopted the motion on May 5, 2026, by a vote of 14-0-1, subject to reconsideration under Council Rule 51.

Full summary

This motion addresses financing arrangements for a permanent supportive housing development at 3501 Western Avenue in Council District 8, a site with roots in the state's Project Homekey program. The City acquired the former EC Motel in December 2020 for $5.325 million, using a combination of city funds and state Housing and Community Development money, and selected SSG HOPICS/Special Services Groups, Inc. to own and operate it. The site functioned as interim housing from late 2021 through April 2023, after which SSG pursued conversion to permanent housing. That conversion proved financially impractical given the building's condition, and the Mayor and Council previously approved demolishing the existing 31 units and building a new project with up to 70 units, with the City's promissory note extended through December 2028 to allow time to secure financing. With SSG now actively pursuing predevelopment and development loans, potential lenders are requiring their loan to sit in first lien position ahead of the City's existing promissory note. The motion authorizes the City Administrative Officer, with assistance from the City Attorney, to execute subordination agreements placing the City's promissory note behind those predevelopment loans. It also authorizes the CAO to include in the Conditional Extension of City Loan Maturity letter the proposed terms of an anticipated Los Angeles Housing Department residual receipts loan — structured as a 57-year term at no more than three percent interest — as a signal to funders. The motion explicitly notes that any such letter does not constitute a firm funding commitment; a formal commitment would require separate Council approval. Introduced by Councilmember Marqueece Harris-Dawson and seconded by Councilmember Nithya Raman, the motion went directly to the full Council without a committee referral and was adopted 14-0-1 on May 5, 2026. The file is now closed.

Activity (4)

• 2026-05-05 Council action final.
• 2026-05-05 Council adopted item, subject to reconsideration, pursuant to Council Rule 51.
• 2026-05-01 City Clerk scheduled item for Council on May 5, 2026.
• 2026-04-29 Motion referred to Council.

Documents (3)

• 2026-05-06 Council Action · council_action
• 2026-05-05 Speaker Card(s) · speaker_card
• 2026-04-29 Motion · motion