A new apartment complex for homeless individuals cost the city of Los Angeles approximately $690,692 per apartment, City Controller Ron Galperin reported.
The complex built in the Koreatown neighborhood will feature 72 new apartments and a fitness center and will house low-income seniors and homeless individuals.
The per-apartment cost exceeds the $618,000 median sales price for a Los Angeles County home.
“This kind of cost is utterly unacceptable …,” Galperin said. “I believe we need a fundamental course correction.”
The city controller additionally cited two more projects in the pre-approval phase that are expected to top $700,000 per unit in total costs.
Los Angeles voters approved Measure H, a $1.2-billion general obligation bond, in 2016 to construct 10,000 permanent housing units. Galperin noted the city currently is on pace to construct approximately 7,000 units, far fewer than the voters were promised.
The bond provides up to $150,000 per unit, with any other funds coming from other sources.
A spokesperson for Mayor Eric Garcetti said the exorbitant costs are not due to extravagance, but instead the high costs are due to the “realities” of building in Los Angeles. (Source: USA Today, August 20.)