LOS ANGELES (AP) While most people who live downtown might find the price tag for new homes appealing, some are concerned the city won’t get the financing it needs to build more of them.
A new report by the consulting firm Urban Land Institute found the city has plenty of money for the projects but will struggle to raise enough to build the required units.
The report also warned the $4.5 billion in bond money needed to finance projects in the city is too low.
“It’s not a sustainable amount of money,” said Peter Lipsky, a senior fellow with the institute.
The city’s spending on housing has fallen off a cliff since the recession.
But the Institute’s report found the state has spent a lot more than the city on new housing over the past few years, and that the federal government is still paying for some of that spending.
That means the city needs to get serious about building more housing, said John Lippert, who is also a fellow with Urban Land.
He said the city’s goal is to have 100,000 homes built by 2026.
“We’re just going to have to make sure we’re going to build as many as we can and not fall behind the pace of the rest of the country,” Lippitz said.
Urban Land’s report was based on a $500 million bond program and a $1 billion bond for a new affordable housing complex near downtown.
It doesn’t include additional funding for other housing projects, such as the Riverside and San Gabriel Park projects that have already gone ahead.
The institute’s report also pointed out the city hasn’t built enough affordable housing since 2011, and is struggling to finance new housing.
The city and city officials said the state and the federal governments are still funding much of that housing.
Lipske said the report shows that “if we are to get a more sustainable housing strategy going, we have to start from scratch.”
The city has been trying to address that, hiring more affordable housing experts to help figure out what housing is needed.
Lippit said he wants the city to take on more affordable units and build them more quickly.
The City Council has approved $3.5 million in new bond funding, which will help pay for the city and other projects.
L.A. has spent more than $4 billion on new affordable units over the last three years, but that has left many struggling to meet demand, especially in neighborhoods where prices are skyrocketing.
L.A.’s affordability crisis has caused many businesses to shutter.
One popular neighborhood in Downtown Los Angeles, L.C., is seeing a decline in business because of the lack of affordable housing.
A recent survey by the L.D.E.A., a nonprofit advocacy group, found half of the people who responded said they were considering leaving.
The L.L., Riverside, San Gabriel, Santa Monica and Santa Monica-based nonprofit said its recent survey of nearly 2,000 people showed that half of people in the area would consider leaving their homes in 2018 if it meant a cheaper rent.