By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
A $25 million ground-up affordable housing construction loan in Los Angeles is one of the most capital-stack-complex financings in commercial real estate. Most $25M LA affordable housing projects combine 4 percent LIHTC equity, tax-exempt bonds (CDLAC allocation), state HFA soft debt (HHAP, NPLH, AHSC, MHP), city of LA soft debt (HHH, LACAHC), city ED1 streamlining, and senior debt from a permanent lender at construction conversion. The structuring complexity is significant but the capital availability for properly-structured affordable housing in LA is meaningful.
Get a Quote on Your $25M Deal →$25M LA ground-up affordable housing capital stacks combine 6 to 10 capital sources. The senior debt typically funds 40 to 60 percent of total cost; LIHTC equity, soft debt, and tax-exempt bond layers fill the balance.
Pricing reflects active CLS CRE quote pipeline as of April 2026. Specific deal pricing depends on sponsor, property, and structure.
Typical $25M LA affordable housing sponsors are mission-aligned non-profit and for-profit developers with multiple completed LIHTC projects. Sponsors include mission-aligned housing developers (Eden Housing, BRIDGE Housing, Mercy Housing, Abode Communities, A Community of Friends, others), for-profit affordable specialists, and structured capital funds. Sponsor experience with LIHTC, tax-exempt bonds, and California-specific soft debt programs is essential.
On a $26M ground-up 78-unit 100 percent affordable multifamily project in South LA serving 30 to 60 percent AMI residents, the sponsor was a non-profit affordable housing developer with 14 completed LIHTC projects. The capital stack included $14M of senior construction debt from a tax-exempt bond-funded construction lender (converting to permanent at completion), $7.2M of 4 percent LIHTC equity, $11M of tax-exempt bonds (CDLAC allocation), $4.2M of HHAP state soft debt, $2.5M of HHH city of LA soft debt, $800K of MHP state soft debt, and $400K of deferred developer fee. The deal closed after a 22-month structuring and approval process. Construction took 22 months. The deal placed in service at month 26 with full LIHTC compliance and 30-year affordability commitment.
Anonymized. All deal references protect borrower and lender identity.
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