AIDS Healthcare Foundation and the Coalition to Preserve LA announced this month that the two nonprofit groups reached a legal settlement with CIM Group, the developer of Hollywood’s Sunset Gordon Tower, a 22-story apartment complex in the heart of Hollywood.
Under the settlement, 5929 Sunset LLC, a project of CIM Group, agreed to lower the affordability levels of the 45 rent-restricted units that are set aside in the 299-unit building. They also agreed to provide AHF and CPLA copies of reports they are required to send to Los Angeles Housing and Community Investment Department with the affordability levels so there may be a third-party mechanism to ensure oversight and accountability.
“This is a welcome victory in the ongoing battle to try and preserve and create affordable housing solutions across Los Angeles,” said Michael Weinstein, president of AHF. “Given the dire state of housing affordability today, we thank 5929 Sunset LLC for its flexibility and for significantly reducing income thresholds tied to area median income for the 45 units set aside as affordable housing at Sunset Gordon. We remain deeply concerned about gentrification and its impact on long-established communities, particularly low-income and communities of color. Nevertheless, this settlement allows both sides to claim victory, as the project may now also move forward to completion and occupancy.”
Under the settlement, the maximum allowable income for 15 units for very low-income tenants drops from 50% of area median income to 40% of AMI. So, for example, these units must be affordable to an individual making $29,320 per year as opposed to the prior limit of $36,650 per year.
The maximum allowable income for 15 units for moderate-income units drops from 120% of AMI to 80% of AMI. For example, these units must be affordable to individuals making $58,640 per year as opposed to the prior limit of $87,960.
The maximum allowable income for 15 units for workforce income tenants drops from 150% of AMI to 110% of AMI.
As part of the settlement agreement, AHF and CPLA will dismiss their lawsuit and not continue to pursue an appeal. The lawsuit was dismissed on March 10.
This site uses Akismet to reduce spam. Learn how your comment data is processed.