KB Homes project at 2540 Rosemead: 96 of 207 units sold; 21 affordable units tied to 55‑year covenant

City staff briefed the South El Monte Planning Commission on progress at the KB Homes development at 2540 Rosemead Boulevard, a previously approved site review for 207 new dwelling units that includes an on‑site affordability component.

The project, originally approved in March 2022, was presented as a mix of single‑family and multifamily units with 21 deed‑restricted affordable homes. "This project not only included new sidewalk, curved ramps, and gutters, but it also provided an affordability component," a Staff member said during the presentation. The staff update reported that construction began in 2025, 125 of the 207 units have received permits and 96 units have been sold so far; of those sold units, staff said, 87 were market‑rate and 9 were affordable.

Staff said the development’s affordable units are governed by a master affordable housing covenant approved by the city council in July 2025. The covenant, staff said, sets income and tenure limits and preserves the units for 55 years. "There is a 55 year covenant on these units," the Staff member said.

The city and developer held an online lottery for the affordable units; staff reported 1,002 applicants entered the lottery. KB Homes is screening applicants in order from the lottery list until applicants qualify for a given unit type, staff said. City staff also said they have provided additional resources such as first‑time homebuyer programs to help applicants with down payments and eligibility.

Commissioners asked whether any units were already occupied and how quickly the affordable units were moving compared with market‑rate homes. The Staff member said some units are occupied and that KB Homes is building and selling the project in phases; most of the completed units are toward the Rosemead side of the site. On the pace of affordable‑unit occupancy, staff said many lottery applicants either exceed the income limits or lack sufficient down payment, and that KB Homes is continuing to work down the applicant list. When asked, staff said KB Homes was in the 300–400 range of applicants being processed.

Staff said the remaining permit batch is under review and that the project is anticipated to be complete in 2027. No complaints from adjacent property owners were reported to staff.

Planning commissioners did not take a formal vote on the update; the presentation was informational and staff said they would return with future updates as permits are issued and construction progresses.