New Generation Fund
Since 2008, the Los Angeles Housing + Community Investment Department (HCIDLA) has partnered with the Enterprise Community Partners to develop the $200 million New Generation Fund (NGF) to provide loans for affordable rental and homeownership projects for low- to moderate-income households. HCIDLA aims to finance 20,000 affordable housing units with the NGF.
The NGF is a revolving loan program that provides acquisition and pre-development capital for affordable housing projects. Eligible affordable housing projects can include either rental or homeownership units targeted to households earning at or below 150 percent of the Area Median Income levels established by the U.S. Department of Housing and Urban Development. The low-interest rate loans are to be repaid once developers qualify for permanent financing.
The City of Los Angeles NGF is modeled after similar programs created in Washington D.C. and New York City. Enterprise Community Partners, administrator of the NGF, is nationally recognized as a leading provider of development capital for affordable housing projects. ECP has established a local partner network of community based organizations and financial lenders.
The NGF supports the City's Affordable Housing Trust Fund Pipeline and promotes new loan transactions. In July 2015, HCIDLA received approval from the Mayor and City Council to renew a loan of $10 million from the City's General Fund for a term of 10 years for the NGF. The purpose of the $10 million loan for the NGF is to cover shortfalls and to leverage approximately $50 million in private lending capital. Since its inception, NGF has loaned more than $68 million to 14 affordable housing developments, of which, eight projects have closed their NGF financing and produced 784 affordable units, and six projects currently in the pipeline will add 488 affordable units to the City’s housing pool.