740 South Olive Street Apartment is a 12 story, 309 unit property, with first floor commercial spaces, originally built in the 1920’s. The property, located in the heart of Downtown Los Angeles, was converted from a commercial office building to a senior housing complex in 1979. The property still caters specifically to senior and handicapped residents, with 100% of the units assisted under a Section 8 contract.
In September 2008, Related California (the Sponsor) acquired 740 South Olive and began a substantial rehabilitation of the property, using $52.45 million of tax-exempt bond financing, credit enhanced by FHA 221d4 mortgage insurance and $15.4 million of Low Income Housing Tax Credit (LIHTC) equity. In January 2009 the Project was awarded a new 20 year marked-to-market Section 8 HAP contract. Major rehabilitation activities included building interior/exterior and building system repairs, energy efficiency improvements, and common area amenity and individual unit upgrades.
Not only did HUD’s support of this Project preserve access to much needed affordable (Section 8) senior housing in Los Angeles, but it also satisfied another of HUD’s key goals of supporting community development. The Project is located in the heart of downtown Los Angeles, an area experiencing extensive residential redevelopment as it is changing from its historical commercial, warehouse and office space to residential uses such as newer live-work lofts, condominiums and apartments.