A Real World ED 1 Affordable Housing Case Study  / by Valerie Puchades

More good news for developers looking to build 100% affordable housing in Los Angeles is that the Mayor has issued Executive Directive 1 (ED 1), making getting projects through the approval process easier and quicker. ED 1 allows eligible projects to receive expedited processing, clearances and approvals through the ED 1 Ministerial Approval Process.

With faster approvals, the City, developers and architects can work more efficiently together to get affordable housing projects designed and constructed. More housing is a huge win for our City as we continue to look for solutions to the housing crisis that works for all parties involved. Projects like these are also central to AERO’s mission, “looking for well-intentioned development projects and positive opportunities created by investment in our community.” 

What’s an eligible project? 

ED 1 applies to all shelters and 100% affordable housing projects with an active or valid City Planning application or referral form filed with City Planning and any ED 1 eligible projects under review by LADBS or LAHD. Units must be for rent (vs. for sale), and the project needs to include five or more units. 

For ED 1, the City is defining affordable housing projects as those with five or more units, with all units affordable at either 80% of Area Median Income or lower or at mixed income with up to 20% of units at 120% Area Median Income and the balance at 80% Area Median Income.

A real world example

AERO is working with developer common.LA on a project in South Los Angeles that qualifies for ED 1. The project includes one lot and will add approximately 15 housing units. Utilizing ED 1, state law AB 2097 and a number of other affordable housing state laws allows the project to  eliminate parking, open space requirements and CPIO requirements like the inclusion of commercial use in a project. Combining all these factors we’re seeing a growing path towards for profit 100% affordable housing development. Most notably, when parking requirements and requirements for open space are lifted we can fit more units on a single parcel.By developing that parcel to capacity with rent-producing units, our clients can see a better return-on-investment and communities can increase their housing stock. We’re underway with the design of this ED-1 project and a few more, so stay tuned and follow our progress. 

Have a project you think qualifies for ED 1? Give us a call to discuss your options.