The fund managed by SDS Capital Group serves as the sole source of capital for PSH projects developed by Los Angeles-based RMG Housing. Its “one-stop” financing approach dramatically reduces the time required to underwrite and close funding on such projects. It provides uncommon speed and efficiency in an industry that is characterized by the need for multiple funding sources that can take years to aggregate. Another point of distinction for the recently launched Fund is its focus on investing only in projects that are financially sustainable over the long term – a condition that requires per-unit costs do not exceed $200,000.
Financing issues and per-unit costs are often cited as the foremost obstacles to developing much-needed housing for Los Angeles County’s homeless population, which currently exceeds 66,000.
“This is our third investment in just the past three months to build housing for people experiencing homelessness, and we’re doing it without the need for public subsidies,” said Deborah La Franchi, CEO and President of Los Angeles-based SDS Capital Group. “We can finance projects so quickly because our Fund’s $106 million of capital is, by design, available to RMG as soon as a transaction meets our investment parameters.”
The SDS Supportive Housing Fund is on track to finance a total of up to 1,800 units of permanent supportive housing, mostly in the Los Angeles area.
“We are committed to helping the most vulnerable Angelenos get off the streets and into safe, supportive homes where they can get the help they need to change their lives,” La Franchi added.
The new South L.A. project site is located just east of the 110 Freeway and has been owned by Heavenly Vision Church for over 65 years. The Church’s community development arm—Heavenly Vision Community Development Corporation—will serve as the project’s managing general partner.
“Our partnership with Heavenly Vision shows how the private-sector and the faith-based community can work together to solve our most pressing social challenges,” said RMG Housing Founder Tim Roth.
Bishop James Taylor added, “Heavenly Vision Church and Community Development Corp look forward to broadening our reach in the community by partnering with SDS and RMG on this groundbreaking project to help our community’s most vulnerable members.” Bishop Taylor serves as Heavenly Vision’s interim director and chair of the Community Development Corp board.
A crucial element of the project is the case management services that will be provided to each tenant. Homeless Health Care Los Angeles (HHCLA) will provide on-site assistance to connect tenants with the social services and resources they need to thrive.
“We’re grateful for our partnership with the SDS Supportive Housing Fund and RMG,” said HHCLA Executive Director Mark Casanova. “Permanent supportive housing that incorporates case management is critical for helping individuals experiencing homelessness rebuild their lives.”
Construction is planned to start in June 2021 and conclude in December 2022. Amenities will include office space for HHCLA caseworkers, a rooftop terrace, rooftop solar panels, vertical aeroponic rooftop gardens for tenants to grow fresh food and a 1,922 square foot community room.
About SDS Capital Group
Los Angeles-based SDS Capital Group is the fund manager for the SDS Supportive Housing Fund. Founded in 2001 by Deborah La Franchi, the firm manages a platform of impact investment funds – each with a distinct geography and investment strategy. SDS has been recognized for the past four years by ‘ImpactAssets 50’ as one of the top impact managers globally. With six funds and finance products on its platform, SDS currently has over $1 billion in impact assets under management. The SDS Supportive Housing Fund is the company’s newest fund and is currently being capitalized. It is focused solely on financing permanent supportive housing (PSH) developments in California that are financially sustainable and provide case management support services. For more information, visit www.sdsgroup.com.
About RMG Housing
RMG Housing, based in Los Angeles, is a developer of permanent supportive housing (PSH) for individuals and families experiencing homelessness. Each property RMG develops offers on-site intensive case management services for residents. RMG’s core mission is to develop high-quality PSH units that are both cost-effective and financially sustainable. For more information, visit www.rmghousing.com
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SOURCE SDS Capital Group / SDS Supportive Housing Fund