The Housing and Homelessness Committee recommends transferring ownership of two affordable housing properties—Manitou Vistas I (3420 Manitou Avenue) and Manitou Vistas II (3414 Manitou Avenue)—to New Way Home Corporation, a nonprofit entity created by the Housing Authority of the City of Los Angeles (HACLA).

What is Being Proposed?

The Housing and Homelessness Committee recommends transferring ownership of two affordable housing properties—Manitou Vistas I (3420 Manitou Avenue) and Manitou Vistas II (3414 Manitou Avenue)—to New Way Home Corporation, a nonprofit entity created by the Housing Authority of the City of Los Angeles (HACLA). This includes assigning existing city loans totaling $4,024,418 to the new owner and restructuring the loan terms and affordability requirements.

Key Changes to Loan Terms

The proposal significantly improves the financial structure for the projects: the interest rate would be reduced to 3% (simple interest), all accrued interest would be forgiven, and the loan term would be extended to 55 years. Additionally, the affordability restrictions on Manitou Vistas II would expand from 10 units to 20 units, with new income-based allocations (ranging from 30% to 60% of Area Median Income). Revenue sharing between the City and HACLA would shift to 75% HACLA/25% City for the first 10 years, with a potential 50/50 split if certain capital events occur.

Impact and Significance

Located in Council District 14, these changes will preserve and expand affordable housing opportunities while transferring operational control to HACLA. The expanded affordability requirements at Manitou Vistas II mean more residents at lower income levels will have access to housing. The committee approved this motion unanimously on November 5, 2025, and it now moves to the full City Council for final approval.

What is Being Proposed?

The Los Angeles City Council is being asked to approve the sale of two affordable housing properties—Manitou Vistas I and II (67 units total)—to the Housing Authority of the City of Los Angeles (HACLA). The motion would also restructure the city's existing loans to these properties by extending loan terms to 55 years, reducing interest rates to 3%, and forgiving accrued interest through the closing date.

Why?

The Manitou Vistas properties, located at 3420 and 3414 Manitou Avenue in Council District 14, are facing imminent foreclosure due to financial distress from deferred maintenance and high operational costs. The original developers were removed in 2012 after numerous violations. LAHD is pursuing this action to prevent the loss of 67 affordable units—particularly important given the city's housing crisis—and allow HACLA to acquire and preserve the properties with a target closing date of October 31, 2025.

Key Details

Properties: 48 units (MV-I) and 21 units (MV-II), all four-bedroom, two-bathroom apartments Current city loans: $2,504,918 (MV-I) and $1,519,500 (MV-II), originally provided in 2006 Affordability: Currently 47 units at various AMI levels; restructured plan increases to 67 affordable units with 20 units on MV-II meeting Tax Credit Allocation Committee standards Buyer: New Way Home Corporation, a nonprofit public benefit corporation created by HACLA

Impact

This action preserves 67 units of affordable housing in Council District 14 and allows HACLA to manage both properties as a single functioning asset with shared amenities. Residents benefit from improved maintenance and long-term affordability protections. The restructured loan terms reduce the financial burden on HACLA while protecting the city's investment in affordable housing.

What is Being Proposed?

The City Council is being asked to authorize the sale of two affordable housing properties (Manitou Vistas I and II) to the Housing Authority of the City of Los Angeles (HACLA), restructure the City's loans to these properties, and amend loan terms to preserve 67 affordable housing units. Specifically, the motion proposes: extending loan terms to 55 years, reducing interest rates to 3 percent, forgiving accrued interest, revising how rental income is split between the City and HACLA, and increasing affordability restrictions on one building from 10 to 20 units.

Why?

The two properties—48-unit and 21-unit buildings on Manitou Avenue in Council District 14—are in financial distress facing imminent foreclosure by lenders. The previous owner was removed in 2012 due to violations, leading to deferred maintenance, high operational costs, and the borrowers' inability to pay debt. Without intervention, the lenders will foreclose and 67 affordable units will be lost. HACLA has proposed acquiring and preserving these properties through repairs and long-term affordability agreements.

Key Details

Properties: MV-I (3420 Manitou Avenue, 48 units) and MV-II (3414 Manitou Avenue, 21 units) Financing: City currently holds loans of $2.5 million and $1.5 million Timeline: Target closing for MV-II is October 31, 2025 (urgent deadline) Affordability: All units are 4-bedroom/2-bathroom; currently 67 restricted units with 47 on MV-I and 20 on MV-II New Terms: 55-year affordability period, reduced interest rates, and revised revenue-sharing favoring HACLA

Impact

This preserves 67 affordable housing units that would otherwise be lost to foreclosure, ensuring continued housing for low-income families. The City restructures its loans at lower rates while maintaining some revenue participation, and HACLA assumes operational responsibility and investment in necessary repairs and maintenance.