City Council approves additional funds to finish stalled affordable housing project

The Los Angeles City Council voted to approve additional funds to complete an affordable housing project that staff said has been delayed by contractor walk-offs and vandalism.

Housing Department representative Paul Simon told the council the project is an "earthquake project" with a current total cost of about $236,000 per unit and that two contractors had left the job, contributing to higher costs and delays. Simon said the extra money requested would enable the project to be finished and would deliver 11 affordable units and ‘‘eliminate the blight’’ created by the unfinished site.

Council members pressed staff for more fiscal detail. Councilmember Holden asked whether prior contractors had been fully paid and how much additional overruns could have resulted if contractors had remained; Simon said he did not have complete answers at the dais and staff would follow up. Councilmember Eric Garcetti noted that members of the housing committee had raised similar concerns and suggested measures — including stepped-up security — that may have reduced damage and cost escalation. Garcetti also asked that public benefits tied to added funding be explored, including extending the period of affordability from the project's existing term; staff did not report a change to the affordability term that day.

Council discussion emphasized completing construction swiftly to avoid continued blight and crime at the unfinished site while staff pursues follow-up inquiries into contractor payments and other contract issues. The council then voted to approve the additional funding as recommended by staff; the clerk recorded a unanimous yea vote from the members present.

The council did not adopt an immediate change to the project's affordability term at the meeting. Councilmembers requested a staff report with more detailed accounting of contractor payments, the total incremental amount approved, and any recommended security or contract-management changes before disbursing the entire sum.

Follow-up tasks listed by staff include a written report on contractor payments and a review of security provisions and procurement history.

Funding details disclosed in the meeting: the Housing Department stated the project cost is approximately $236,000 per unit; the project will produce 11 affordable units. The precise dollar amount of the additional appropriation was discussed but not stated on the record in a single, unambiguous number during the council exchange; staff was asked to provide a written breakdown.