Glendale City Council approves $2.25M support for Metro Loma affordable housing project

The Glendale City Council convened on May 20, 2025, to address critical issues surrounding the Metro Loma Apartments, an affordable housing project facing foreclosure. The council's discussions centered on a proposed financial intervention aimed at stabilizing the property, which has been operating at a loss and is currently in default on its first mortgage.

The Metro Loma Apartments, located at 328 Mira Loma Avenue, consists of 44 units designated for low-income residents. Since its opening in 2009, the project has struggled financially, with a reported negative cash flow of $200,000 last year. The property is now under threat of foreclosure due to unpaid mortgage obligations, prompting urgent action from city officials.

City staff proposed a comprehensive financial package totaling approximately $2.25 million to prevent foreclosure and ensure the continued affordability of the units. This plan includes a request for $1,373,891 from the Glendale Housing Authority, which would cover immediate costs and repairs while also facilitating the transition to a new property management team. The funding strategy involves a collaborative effort between the Glendale Housing Authority and the Los Angeles County Development Authority, with contributions based on the proportion of existing loans.

Key to the plan is a structured approach to rent increases, which aims to balance the financial viability of the project with the needs of current tenants. The proposal outlines a tiered rent increase strategy, where the most vulnerable tenants—those paying more than 30% of their income on rent—may not see any increases for up to three years. In contrast, higher-income tenants may face more substantial rent adjustments to help stabilize the project's finances.

The council's decision to move forward with this financial intervention reflects a commitment to preserving affordable housing in Glendale, addressing both immediate financial challenges and long-term sustainability. As discussions continue, city officials emphasize the importance of maintaining affordability for low-income residents while navigating the complexities of property management and financial recovery.

This meeting marks a significant step in Glendale's efforts to tackle housing insecurity and ensure that residents have access to stable, affordable living conditions. The council's actions will be closely monitored as they work towards a resolution that benefits both the community and the financial health of the Metro Loma Apartments.