What makes the SDS Supportive Housing Fund groundbreaking?

The SDS Supportive Housing Fund is groundbreaking because it's a first-of-its-kind real estate private-equity fund that builds permanent supportive housing in California without any government subsidy. It provides 100% of the capital required for each project (except for the developer's equity), which dramatically streamlines the financing for each development.

How much does it cost per unit compared to traditional subsidized housing?

The SDS Supportive Housing Fund projects cost under $200,000 per unit, compared to more than $500,000 per unit that an LA city controller's audit found for some projects partially subsidized with Measure HHH money. This represents significant cost savings while maintaining quality.

Who are the major investors in the fund?

The fund is nearing $150 million with a full one-third of that funding (approximately $50 million) coming from the Thriving Communities Fund of health care system Kaiser Permanente. Kaiser Permanente sees a connection between housing and health, making affordable housing investment part of their mission.

How many housing units will the fund create?

The collaboration expects to produce 1,800 housing units statewide, with most located in Los Angeles. The fund plans to develop 30 such buildings in LA, representing a significant contribution to addressing the county's homeless population of over 66,000 people.

Why did KNBC Channel 4 cover this story?

KNBC Channel 4 covered the SDS Supportive Housing Fund because it represents an innovative new approach to addressing Los Angeles County's homelessness crisis. With over 66,000 homeless individuals and traditional housing costs exceeding half a million dollars per unit, this private-sector model offers a compelling alternative that can build housing faster and more cost-effectively.

March 3, 2021

KNBC Channel 4 Covers SDS Supportive Housing Fund

In the below segment, KNBC Channel 4 cover’s SDS’s new Supportive Housing Fund, a groundbreaking real estate private-equity fund building permanent supportive housing in California without any government subsidy.