Affordable Housing Financing Guide

EDI, SB 35, and AB 2011 Streamlined Affordable Financing

Executive Directive 1 (ED1) gives 100% affordable projects in the City of Los Angeles ministerial, by-right approval, no discretionary hearing, no CEQA review, and a density bonus above base zoning. SB 35 and AB 2011 extend a similar streamlined, ministerial pathway to qualifying projects statewide, so the same underlying mechanics apply whether the site is in LA, Sacramento, or San Diego. The tradeoff for the speed is prevailing wage on nearly every qualifying path, which changes the construction budget math versus a conventional market-rate build.

Typical Deal Size$8M to $40M total development cost
Approval PathMinisterial (by-right) for qualifying projects
CEQA TreatmentExempt or streamlined for qualifying projects
Density BonusAvailable above base zoning
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The Capital Stack

Most Streamlined Affordable (EDI / SB 35 / AB 2011) deals layer several sources rather than a single loan:

Why the approval pathway changes the financing conversation

A ministerial approval removes the single biggest source of construction-loan timing risk on affordable deals: entitlement uncertainty. Lenders who understand ED1, SB 35, and AB 2011 will often quote a shorter rate lock and a tighter construction contingency because the approval risk most banks price into affordable ground-up is largely gone. The gap that remains is capital stack complexity, not entitlement risk.

The stack underneath the entitlement

The entitlement pathway doesn't finance the deal by itself. Most ED1 and SB 35 projects still layer a construction loan against 4% or 9% LIHTC equity, tax-exempt bond proceeds on the larger 4% deals, and two or three rounds of state or city soft debt (HHAP, NPLH, AHSC, MHP, local trust funds) to close the gap between hard costs and permanent debt capacity. The ministerial approval buys time and certainty; it doesn't buy equity.

For the full program mechanics, see our deeper guide: Program Deep Dive →

Where We're Active

Streamlined Affordable (EDI / SB 35 / AB 2011) Financing, By Market

Local financing guides for the markets where we're actively tracking Streamlined Affordable (EDI / SB 35 / AB 2011) deal flow.

Los Angeles

EDI, SB 35, and AB 2011 Streamlined Affordable Financing in Los Angeles.

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Frequently Asked Questions

Does ED1 only apply in the City of Los Angeles?

Yes. Executive Directive 1 is a Los Angeles mayoral directive and only applies within city limits. SB 35 and AB 2011, however, are state law and apply to qualifying sites in any California jurisdiction, which is why cities outside LA still see real streamlined-affordable financing activity.

Is prevailing wage required on every streamlined pathway?

Nearly always. SB 35, AB 2011, and any project layering LIHTC equity all require state prevailing wage on construction labor. Budget for it from the first pro forma, not after the GC bid comes back higher than expected.

What's the realistic deal size for this pathway?

Most ED1 and SB 35 projects we see run $8M to $40M in total development cost. Below that range, the fixed costs of a multi-source affordable capital stack start to erode returns; above it, sponsors typically shift toward the larger 4% LIHTC and tax-exempt bond structure instead.

How long does the ministerial approval actually save versus discretionary review?

Ministerial approval under ED1 or SB 35 typically shaves 6 to 18 months off the entitlement timeline compared to a discretionary hearing process with CEQA review, time that otherwise sits on the construction loan's rate lock and carry costs.

Have a Streamlined Affordable (EDI / SB 35 / AB 2011) deal?

Send us the site, the program you're targeting, and where it stands today. We'll come back within 24 hours with the lenders who actually close this structure and the stack we'd recommend.

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