Title
Select Proposers and Authorize Facilities Services Division to Negotiate and Execute an Exclusive Negotiating Agreement for the Development of Workforce Housing at Two Los Angeles Unified-Owned Sites
Facilities Services Division
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Brief Description:
description
(Select Proposers and Authorize Facilities Services Division to Negotiate and Execute an Exclusive Negotiating Agreements for the Development of Workforce Housing at Two Los Angeles Unified-Owned Sites) Recommends the selection of proposers, pursuant to Request for Proposals R-26058, and the authorization of the Chief Facilities Executive and/or her designee(s) to negotiate and enter into an Exclusive Negotiation Agreement (ENA) and other reasonable documents with the Proposers for due diligence, community engagement and other reasonable predevelopment activities under an ENA, for two Los Angeles Unified School District (LAUSD or District) properties.
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Recommendation
Action Proposed:
Staff propose that pursuant to the requirements of the Education and Government Codes that the Board of Education (Board) take the following actions:
1. Select the following Proposers based on the results of the Request for Proposals R-26058:
a. West Hollywood Community Housing Corporation (WHCHC) and Alpha Construction Company (WHCHC Team) for the District-owned property located at 1049 N. Fairfax Avenue, West Hollywood (Fairfax COS).
b. Affirmed Housing Group and HA Builders Group, LLC (Affirmed Team) for the District-owned property located at 5717 N. Rudnick Avenue, Woodland Hills (Collins).
2. Authorize the Chief Facilities Executive and/or her designee to negotiate and enter into ENAs and other reasonable documents with the WHCHC Team for the Fairfax COS and with the Affirmed Team for the Collins, for due diligence, community engagement, and other reasonable predevelopment activities under the respective ENAs.
Final programmatic and financial terms will be negotiated during the ENA period to maximize the District’s housing goals. Facilities Services Division will return to the Board with final terms and conditions to request authorization to execute Development Agreements, Ground Lease Agreements and other reasonable documents with the selected Proposers.
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Body
Background:
As part of the District’s Workforce Housing Initiative, the District evaluated nine District-owned properties for potential housing development. Following site and financial feasibility analyses, four underutilized school properties were identified as viable for potential workforce housing development:
• 1130 South Main Street, Los Angeles (Gompers)
• 911 Hoover Street, Los Angeles (Hoover)
• 1049 N. Fairfax Avenue, West Hollywood (Fairfax COS)
• 5717 N. Rudnick Avenue, Woodland Hills (Collins)
On September 16, 2025, the Board authorized the Chief Facilities Executive and/or her designee to solicit proposals for the development of workforce housing at the four sites, with the goal of maximizing affordable housing opportunities for District employees. (Board Report No. 049 25/26) <https://drive.google.com/file/d/1xYptkkKbdaQYUiK0Qo6ve1R-06rZVr8f/view?usp=sharing>.
Following that authorization, the District refined its procurement approach and, on May 22, 2026, issued Workforce Housing Program RFP R-26058. The District received ten eligible proposals from nine entities for the Fairfax COS and Collins sites (one entity submitted a proposal on both sites). No qualified proposals were received for the Gompers and Hoover sites. A Selection Panel consisting of Facilities staff, with technical expertise from the City of Los Angeles Housing Department, Los Angeles County Development Authority, and the District’s housing consultant, evaluated the proposals. Based on that evaluation, the West Hollywood Community Housing Corporation and Alpha Construction Company team is recommended for Fairfax COS, and the Affirmed Housing Group and HA Builders Group, LLC team is recommended for Collins.
Both proposals affirmed that all units will be first offered to LAUSD employees, in accordance with California Government Code. Project terms will be negotiated during the ENA period and staff will return to the Board with final terms and conditions to request authorization to execute Development Agreements, Ground Lease Agreements and other reasonable documents with the selected Proposers. The project terms described below reflect the current proposals and may change during due diligence, financing, and negotiation of final terms.
Fairfax Recommended Proposal Overview - WHCHC Team
The WHCHC Team proposes approximately 200 rental units, including studio, one-bedroom, two-bedroom, and three-bedroom apartments, on the approximately 1.44-acre West Hollywood site, which is currently used in part for Region West Community of Schools administrative space. The proposed building will be eight stories along Fairfax Avenue and step down to four stories along Hayworth Avenue. The development also includes approximately 250 underground parking spaces, commercial spaces along Fairfax Avenue, outdoor play areas, a community room, computer lab, fitness center, and rooftop terraces. The proposer will be responsible for ongoing operation, management, and maintenance of the development.
The Proposer will finance the project through Low-Income Housing Tax Credits, a committed $15 million loan from the City of West Hollywood, and other public subsidy sources available to affordable housing projects in California. All units will be made available to individuals and families with incomes between 30% and 120% of Area Median Income. The proposal includes a $10 million ground lease payment to the District post-construction, at conversion to permanent financing; an annual ground lease rent of $20,000 beginning in the first year of operations and escalating at 3.5% annually; and a share of cash flow and commercial income. The final ground lease term will be determined through negotiations and, pursuant to California Education Code, may not exceed 99 years. The proposal anticipates that construction will start in 2028 and be completed by 2030.
The development team will be led by West Hollywood Community Housing Corporation and Alpha Construction Company, in association with Barker Management (property management) and Steinberg Hart (architect).
Final programmatic and financial terms will be negotiated during the ENA period to maximize the District’s housing goals. All terms, including the ground lease amount, payment structure, and other financial terms, are subject to negotiation and may change. Facilities staff will return to the Board with final terms and conditions to request authorization to execute Development Agreements, Ground Lease Agreements and other reasonable documents.
Fairfax COS is in Region West and Board District 4 (Nick Melvoin).
Collins Recommended Proposal Overview - Affirmed Team
The Affirmed Team proposes to construct approximately 390 rental units, including one-bedroom, two-bedroom, and three-bedroom apartments, on the 6.56-acre vacant District-owned property in Woodland Hills, which was formerly used as a school site. The proposed building will be five stories along Shoup Avenue and step down to three stories along Miranda Street and Rudnick Avenue. The development also includes approximately 550 parking spaces, outdoor play areas, a community room, fitness center, and walking paths. The proposer will be responsible for ongoing operation, management, and maintenance of the development.
The Proposer will finance the project through Low-Income Housing Tax Credits and public subsidy sources available to affordable housing projects in California. All units will be made available to individuals and families with incomes between 30% and 120% Area Median Income. The proposal includes approximately $150,000 in ground lease deposits during predevelopment and construction and a ground lease rent of $250,000 per year, starting in the first year of operations and escalating at 2.5% per year. The final ground lease term will be determined through negotiations and, pursuant to California Education Code, may not exceed 99 years. The proposal anticipates construction will start in 2029 and be completed by 2031.
The development team will be led by Affirmed Housing Group and HA Builders LLC in association with John Stewart Company (property management), and AC Martin (architect).
Final programmatic and financial terms will be negotiated during the ENA period to maximize the District’s housing goals. All terms, including the ground lease amount, payment structure, and other financial terms, are subject to negotiation and may change. Facilities staff will return to the Board with final terms and conditions to request authorization to execute Development Agreements, Ground Lease Agreements and other reasonable documents.
Collins is in Region North and Board District 4 (Nick Melvoin).
Expected Outcomes:
Approval of the proposed action will select the recommended proposers for Fairfax COS and Collins and authorize the Chief Facilities Executive and/or her designee to enter into ENAs and related documents for the two sites. The ENA period will allow the District and theselected proposers to conduct due diligence, community engagement, and further evaluation and negotiation of project terms.
Staff anticipates executing the ENAs within three months of Board authorization. Following completion of the ENA process, Facilities Services Division will return to the Board with final proposed terms and seek authorization to execute the applicable Development Agreements, Ground Lease Agreements, and related documents.
Board Options and Consequences:
A “Yes” vote will select the recommended proposers and authorize the Chief Facilities Executive and/or her designee to negotiate and enter into exclusive negotiations and execute an Exclusive Negotiation Agreements and related documents, to facilitate the development of housing on the Fairfax COS and Collins sites.
A “No” vote will not select the recommended proposers or authorize the Chief Facilities Executive and/or her designee to enter into exclusive negotiations or execute any instruments to facilitate the development of housing on any sites.
Policy Implications:
The proposed action advances the District’s Workforce Housing Initiative by moving two District-owned properties into the next phase of evaluation and negotiation for potential workforce housing development. The initiative is intended to expand access to affordable housing for District employees and support broader workforce recruitment and retention goals.
Budget Impact:
Negotiating and preparing the agreements with the proposers will require staff time from the Facilities Services Division and the Office of the General Counsel, as well as outside counsel support. Associated costs are expected to be funded through revenues generated by the District’s existing housing activities.
The proposed developments are expected to be financed by the proposers, with no District subsidy, guarantee, capital contribution, or impact on the General Fund. The projects are also expected to generate ground lease revenue for the District. Final ground lease amounts and other financial terms will be subject to negotiation and will be presented to the Board when staff returns to seek authorization to enter into the Development Agreements, Ground Lease Agreements, and related documents.
Student Impact:
Providing stable and affordable employee housing can support student success by reducing housing-related stress for employees and promoting greater workforce stability and retention. Many District employees are also parents or guardians of LAUSD students, meaning the benefits of housing stability can extend directly to students and families. A more stable workforce also supports continuity, stronger school communities, and improved conditions for teaching and learning.
Equity Impact:
By creating equitable access to affordable, stable, and nearby housing, the action supports a more diverse and inclusive workforce, strengthens employee retention, and fosters greater continuity and connection within school communities, ultimately contributing to improved outcomes for all students.
Issues and Analysis:
Facilities Services Division staff conducted a Survey in 2024 which indicated that almost half (46%) of employee respondents considered leaving their job due to high housing costs and over 6,000 employees (52%) expressed interest in Los Angeles Unified affordable housing. The development of workforce housing may allow employees to live in affordable, safe, and stable housing within the communities they work in.
Los Angeles Unified invests millions of dollars annually in general and grant funds to recruit, hire, train and develop teachers and staff. These investments are diminished when employees leave Los Angeles Unified employment. Research from the Terner Center for Housing Innovation at UC Berkeley has shown that access to housing affordability is a key factor in improving employee retention, particularly among early-career educators and classified staff. Workforce housing represents a strategic investment in sustaining a strong, consistent, and effective workforce to support student success.
The selected proposers will help to address the above challenges and advance Los Angeles Unified’s housing goals by providing a balanced and strategic approach to affordability, financial feasibility, and long-term Los Angeles Unified value. Both proposers have proposed developments with a range of units and AMIs that maximize viability and address concerns raised by employees in the Survey. The proposed financing was reviewed and deemed suitable for the sites. The following terms will continue to be negotiated prior to execution of a Ground Lease and Development Agreement:
• Opportunities to right-size unit yield;
• Site design, parking configurations, amenities and community integration;
• Risk allocation and pre-development terms;
• Right of First Refusal to protect District interests;
• Revenue-sharing structure; and
• Employee priority for tenancy.
Should staff not be able to finalize terms of the agreements with one or both Proposers, staff may enter into negotiations with the second highest placing Proposer or issue another Request for Proposals to identify and select a new Proposer to build workforce housing at these sites.
Attachments:
None.
Submitted:
09/21/26