May 7th Groundbreaking to Celebrate Project Named for Civil Rights Icon Dolores Huerta Introduces New Scalable Approach from SDS Supportive Housing Fund and RMG Housing in Partnership with the City of Los Angeles
Los Angeles – May 4, 2021 – Labor leader and civil rights icon Dolores Huerta (who worked alongside César Chávez and originated the phrase, “Sí se puede”) is among the dignitaries invited to the May 7th groundbreaking for the Dolores Huerta Apartments – the first permanent supportive housing (PSH) dedicated to people experiencing homelessness built using a new high-speed, low-cost model for funding and construction developed by SDS Supportive Housing Fund and RMG Housing – both based in Los Angeles.
The event, hosted by Los Angeles Councilmember Curren D. Price, Jr. (District 9), SDS Capital Group CEO and President Deborah La Franchi and RMG Housing CEO Tim Roth, will provide an overview of L.A.’s first-of-its-kind privately funded, scaled approach for dealing with the City’s homelessness crisis.
The project at 5215 S. Figueroa St. (about a half-mile north of Slauson Ave.) demonstrates the model’s effectiveness in creating permanent supportive housing far more quickly and at a significantly lower cost than is possible with traditional publicly-funded development.
”The Dolores Huerta Apartments is the newest Permanent Supportive Housing (PSH) development coming to District 9,” said Councilmember Curren Price. This project has all the components to not only fast track the process of building much-needed units, but also provide services that will change the lives of the individuals who will live there. It is so fitting that this building will be named after a fierce warrior whose lifelong mission has been advocating for the marginalized and disenfranchised. Dolores Huerta has consistently taught us that if we look deep within ourselves, we will be unstoppable in all we set out to do. It’s her spirit that we lean on as the City of Los Angeles continues in its efforts to combat the homelessness crisis – determined, persistent, resilient and ready to do what is right.”
The recently launched SDS Supportive Housing Fund serves as a single source of capital for RMG to build permanent supportive housing for L.A.’s homeless. The Dolores Huerta Apartments project is one of four PSH projects that the companies have begun to develop. They plan to develop a total of 30 PSH projects in California.
“We launched the SDS Permanent Supportive Housing Fund for one simple reason – to help tackle the homelessness crisis here in our backyard – Los Angeles,” said Deborah La Franchi, CEO and founder of Fund manager SDS Capital Group. “We provide a single source of private capital that is readily accessible to RMG. This available capital fuels the scalability of this high-quality, low-cost PSH model. RMG is able to maintain a laser-like focus on site selection and construction, rather than chasing multiple funding sources for each investment.”
La Franchi noted that typical PSH developments in Los Angeles tend to require an average of seven different funding sources, which adds significant costs and delays.
SDS approved its financing for the Dolores Huerta Apartments in less than 60 days – an extraordinarily quick turnaround compared to the standard funding model for such projects that relies on a multitude of public funding sources that can take many years to aggregate.
Tim Roth, CEO of RMG Housing, said, “Our ability to access capital from SDS is the key to scaling our high-speed, low-cost construction and moving people off the streets into permanent supportive housing. We believe private financing and modular construction will play an increasingly important role in solving L.A.’s homelessness crisis.”
Accessibility to such high-speed private funding is based on each project’s ability to be financially sustainable. This is achieved through RMG’s value engineering, which on this project includes the use of modular construction with a per-unit cost below $200,000 — less than half the average cost ($500,000) for comparable publicly funded housing in California.
“When I launched SDS in 2001, the goal was to create high-impact investment funds with the ability to transform distressed communities and improve the lives of people living in poverty,” La Franchi added. “The homelessness crisis right here in Los Angeles demands new and creative solutions. We have poured all our know-how and commitment into making the SDS Supportive Housing Fund a solution to scale RMG’s permanent supportive housing quickly and cost-effectively.”
Residents who move in later this year to the 40-unit Dolores Huerta Apartments will live in quality homes with private kitchens and bathrooms. They will also have access to on-site case management services provided by Homeless Outreach Program Integrated Care System (HOPICS). The City of Los Angeles is providing a long-term ground lease on the site, which is near public transportation lines.
The SDS Supportive Housing Fund has raised $107 million to date. At $150 million, it will be able to finance the construction of up to 1,800 permanent supportive housing units for people experiencing homelessness in California. Kaiser Permanente is the Fund’s lead investor, committing $50 million.
The Dolores Huerta Apartments will help satisfy a recent court mandate requiring the City of Los Angeles to facilitate housing for individuals living near dangerous freeway conditions.
The groundbreaking event for The Dolores Huerta Apartments (5215 S. Figueroa St.) will take place on Friday, May 7th from 10:00 am – 11 am. Planned speakers include Los Angeles City Councilmember Curren Price, Jr. (9th District), SDS Capital Group CEO Deborah La Franchi, RMG Housing CEO Tim Roth and guest of honor Dolores Huerta. They will be joined for the ceremonial groundbreaking by children from the nearby Dolores Huerta Elementary School. Renderings of the project and b-roll of comparable modular housing units are available.
About SDS Capital Group
Los Angeles-based SDS Capital Group is the fund manager for the SDS Supportive Housing Fund. Founded in 2001 by Deborah La Franchi, SDS Capital Group manages a platform of impact investment funds – each with a distinct geography and investment strategy. SDS has been recognized for the past three years by ‘ImpactAssets 50’ as one of the top impact managers globally. With six funds and finance products on its platform, SDS currently has over $1 billion in impact assets under management. The SDS Supportive Housing Fund is the company’s newest fund and is currently being capitalized. It focuses solely on financing permanent supportive housing (PSH) developments in California that are financially sustainable and provide case management support services. For more information, visit www.sdsgroup.com.
About RMG Housing
RMG Housing, based in Los Angeles, is a developer of permanent supportive housing (PSH) for individuals and families experiencing homelessness. Each property RMG develops offers on-site intensive case management services for residents. RMG’s core mission is to develop high-quality PSH units that are both cost-effective and financially sustainable. For more information, visit www.rmghousing.com
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