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LOS ANGELES (CNS) - A Los Angeles-based private equity fund has finalized $8 million in funding to develop new housing for the homeless in South Los Angeles, it was announced today.
The $150 million SDS Supportive Housing Fund aims to finance new and financially sustainable permanent supportive housing for individuals experiencing homelessness.
The project site, at 10400 S. San Pedro St., currently home to the Southside Bethel Baptist Church, will soon be transformed into 47 one-bedroom residential units, according to SDS.
Managed by Los Angeles-based SDS Capital Group, the fund is providing 95% of the capital for the permanent supportive housing project developed by RMG Housing. RMG partners are providing the remaining capital co-investment, according to SDS Capital.
SDS said the project will not require any other source of financing.
The fund's ``one-stop'' financing approach significantly reduces the usual time required to underwrite and close funding on such housing projects from an average of five to seven years for most similar projects to about two years --from underwriting to tenant occupancy, according to SDS.
``This is our seventh PSH investment with RMG and our third project we have financed with a local church partner,'' said Deborah La Franchi, founder and CEO, SDS Capital Group.
``We are thrilled to be supporting Bethel Baptist Church's mission to provide for members of their surrounding community who are most in need.''