Politics & Government
CRA Bonds Approved for Historic Montecito Apartments Renovation
Upgrades planned for the low-income senior housing complex at 6650 Franklin Ave. in Hollywood include new appliances, flooring and paint.
A historic landmark on Franklin Avenue that provides affordable housing to seniors will soon be revitalized.
The Los Angeles City Council approved a resolution on Friday authorizing the Community Redevelopment Agency of Los Angeles (CRA/LA) to issue and deliver tax-exempt multi-family housing bonds, in an amount not to exceed $8.2 million, to rehabilitate the Montecito Apartments in Hollywood.
The Art Deco building, a registered historic landmark, was built in 1935 and previously housed many celebrities (it was Ronald Reagan's first home when he moved to Hollywood) until it was converted into a low-income senior housing project in 1985. CRA/LA provided financing for the apartment project’s previous rehabilitation in 1987 when Montecito Apartments Limited owned it. Thomas Safran & Associates bought the project in 1996 when the senior lender foreclosed on the previous owner, and CRA/LA provided a $1,839,000 loan from the Bunker Hill Replacement Housing Trust Fund. That loan will be deposited back into the trust fund when financing is closed on the current project, which is projected to be June 24.
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The bonds, which will not take any money from the city’s general fund or CRA/LA, will be financed by the California Community Reinvestment Corporation and purchased by Wells Fargo Bank.
Safran is refinancing the apartment project by selling it to Montecito Apartments Housing. The developer will have 18 months to finish the project, with plans to start in August, said Neelura Bell, CRA/LA project manager.
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Bell said the agency did an assessment to ensure that the construction would not “diminish historic value or features of the building.”
The building will get new paint, window coverings, carpet and vinyl floors, kitchen appliances and improved electrical and plumbing systems. The lobby and community room will also be upgraded.
The 10-story, 115-unit building’s renovation aligns with the CRA/LA’s Hollywood Redevelopment Project’s goals to preserve historic structures and expand housing across all income levels.
