Jamison and Kennedy Wilson Partner to Develop Over 4,000 Affordable Housing Units in Los Angeles

Real estate developers Jamison and Kennedy Wilson have announced a significant partnership aimed at alleviating Los Angeles' persistent affordable housing crisis. The collaboration, involving Jamison's new Arden Residential division and Kennedy Wilson's Vintage Housing joint venture, plans to deliver over 4,000 affordable units. These projects will utilize both ground-up construction and office-to-residential adaptive reuse strategies.

The initiative comes as Los Angeles faces a substantial housing gap, needing approximately 450,000 new units by 2029 to meet state mandates. Garrett Lee, CEO of Jamison, highlighted the immense need and demand for affordable housing, a sector his company is now fully entering. Nicholas Bridges, global head of capital markets at Kennedy Wilson, emphasized the partnership's potential to add a large volume of units to address the city's "great crisis."

Financing for these developments will primarily rely on the 4% federal Low-Income Housing Tax Credit (LIHTC) program and tax-exempt bonds, aiming for a streamlined capital stack. A crucial enabler for the adaptive reuse component is Los Angeles' Citywide Adaptive Reuse Ordinance, which went into effect in February. This ordinance streamlines permitting and offers incentives for converting underutilized commercial buildings into housing, a policy praised by Bridges as essential for these projects. The joint venture intends to hold these properties for extended periods, typically 18 years, to maximize benefits.