Brief

The Los Angeles Housing Department submitted a loan agreement related to the Clark Residence property at 306 Loma Drive. The Housing and Homelessness Committee waived consideration on May 15, and the full Council adopted the item unanimously (15-0) on May 19, 2026. The file was transmitted to the Mayor on May 20, with the Mayor having until June 1 to act. The matter is now subject to reconsideration under Council Rule 51.

Full summary

The Los Angeles Housing Department requested authority to amend and subordinate the City's existing loan for Clark Residence, a 153-unit low-income apartment building at 306 Loma Drive in the Westlake neighborhood of Council District 1. The property, operated by Clark Residence L.P. with Abode Communities as managing general partner, has been in severe financial distress for years — depleted operating and replacement reserves, year-over-year negative cash flows, and net operating income running more than $300,000 negative. The original city loan of approximately $5.2 million, funded through former CRA/LA redevelopment funds at 3% simple interest, was set to mature in March 2026. To rescue and rehabilitate the project, the developer is pursuing a major recapitalization: roughly $3.1 million in annual federal tax credits, $9.5 million in state tax credits, and $18.5 million in tax-exempt bond financing. The rehabilitation will reduce the unit count from 153 to 108, converting extremely undersized single-room-occupancy units into studio apartments with private bathrooms and kitchenettes. The project will also receive HUD Section 8 project-based vouchers through HACLA. As part of the rehab, seven restricted units will be removed from Clark Residence and replaced with seven one-bedroom units at the Grandview Apartments, a new Abode Communities development under construction at 714 S. Grand View Street about one mile away. LAHD approved a replacement housing plan to govern this unit swap, and the Council adopted a resolution formally authorizing it. The specific changes the Council authorized to the City's loan terms include: extending the loan maturity date to co-terminate with the new TCAC financing, anticipated to run through 2081; extending affordability covenants to the same 2081 date; adjusting the City's share of residual receipts to align with other governmental lenders in the deal; and allowing the loan to be assumed by the newly structured entity, New Clark Residence L.P. The City Attorney was instructed to prepare all necessary documents to recast and modify the loan. LAHD characterized the loan as a non-performing asset and concluded that restructuring it — rather than calling it due — would convert it into a performing asset generating residual receipts income while preserving affordable housing without additional City expenditure. The Housing and Homelessness Committee waived consideration of the item on May 15, 2026, sending it directly to the full Council. The Council voted 15-0 to adopt the item on May 19. As of May 20, the file is with the Mayor, who has until June 1, 2026 to act.

Activity (8)

• 2026-05-20 City Clerk transmitted file to Mayor. Last day for Mayor to act is June 1, 2026.
• 2026-05-19 Council adopted item, subject to reconsideration, pursuant to Council Rule 51.
• 2026-05-15 City Clerk scheduled item for Council on May 19, 2026.
• 2026-05-15 Housing and Homelessness Committee waived consideration of item .
• 2026-05-12 Los Angeles Housing Department document(s) referred to Housing and Homelessness Committee.
• 2026-05-12 Document submitted by Los Angeles Housing Department, dated May 12, 2026.
• 2026-04-29 Los Angeles Housing Department document(s) referred to Housing and Homelessness Committee.
• 2026-04-29 Document submitted by Los Angeles Housing Department, dated April 29, 2026.

Documents (2)

• 2026-05-12 Revised Report from Los Angeles Housing Department · report
• 2026-04-29 Report from Los Angeles Housing Department · report