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April 15, 2020

Press Release: SDS Supportive Housing Fund Closes On First Investment

Fund Will Finance Construction of 49 Units of Permanent Supportive Housing in South Los Angeles


Los Angeles – April 15, 2020 – SDS Capital Group’s new SDS Supportive Housing Fund (“SHF” or “Fund”) has closed on its first investment. The financing will be used to demolish a vacant, fire-ravaged building located in South Los Angeles. At the time of purchase, this site had over two dozen individuals living inside in squalid and dangerous conditions. It will be transformed into 49 high-quality apartments for individuals in the community who are experiencing homelessness.

The trailblazing impact fund was launched to finance the construction of permanent supportive housing for individuals and families. It provides 100% of the capital required for each project (except for the developer’s equity). This dramatically streamlines the financing for each development. In addition, no public-sector subsidies are needed for land acquisition or construction.

Located on Western Avenue in South Los Angeles, the Fund’s first project is at the site of what is currently a fire-damaged building that has stood vacant for over 20 years. The developer — RMG Housing, LLC — purchased the site three-years ago. In just 20 months, it will be transformed into high-quality apartments for those experiencing homelessness. In addition, ground-level community gathering space will be provided for local residents.

“The before-and-after transformation of this site is going to be remarkable,” said SDS Supportive Housing Fund CEO Deborah La Franchi. “Replacing a dangerous, fire-damaged shell of a building with 49 high-quality permanent supportive housing units will elevate the lives of residents as well as the surrounding community.”

Residents will receive on-site case management services from Homeless Health Care Los Angeles (HHCLA), including access to a live-in caseworker. Since 1985, HHCLA has provided behavioral healthcare and quality-of-life services to more than 190,000 of the L.A.’s most marginalized individuals and families.

“As the state’s housing crisis has worsened, HHCLA has struggled to place clients in quality permanent and supportive housing,” said HHCLA CEO Mark Casanova. “The SDS Supportive Housing Fund will help create the supply of housing necessary for our clients to build better lives.”

SDS is targeting a total capitalization of $100 million to $150 million for the new Fund. At $100 million, the Fund will be capable of financing the construction of an estimated 1,200 units of new housing across California.


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