On March 6, SoLa Impact hosted Secretary of the U.S. Department for Housing and Urban Development (HUD), Scott Turner, at the Model/Z factory in Watts. The meeting's focus was on the urgent housing crisis in Los Angeles and the city's post-wildfire rebuilding efforts. Secretary Turner expressed a firm commitment to regulatory reform, streamlining the housing entitlement and construction processes, increased private sector collaboration, and the administration's focus on addressing homelessness and the housing crisis. It is also clear that Opportunity Zones 2.0 will be a major focus of the President and the new HUD Secretary.
Mr. Turner met in a closed-door meeting with SoLa leaders Martin Mutoto and Gray Lusk, along with LA Mayor Karen Bass, LA City Council President Marqueece Harris-Dawson; Lourdes Castro Ramirez, CEO of HACLA; Emilio Salas, Executive Director of LACDA; Tiena Johnson Hall, General Manager of the Los Angeles Housing Department (LAHD); and, at our invitation, Debra LaFranchi, CEO of SDS Capital Group, and Pastor Martin Porter, CEO of Logos Faith Development. The discussion centered on HUD's priorities, the Section 8 voucher program, the possibility of restoring rents in low-income communities to previous levels, and changing Los Angeles' regulatory environment for entitling and building housing. The new administration's willingness to embrace the private sector in driving affordable housing was evident, and Mr. Turner was very complimentary of SoLa's and Model/Zl's business model.
At the end of the visit, Secretary Turner publicly stated, “You understand the issue we have in housing affordability. You understand the issue of people not being able to live in decent quality affordable housing. This gives me a lot of encouragement. Thank you.” Said Secretary Turner.
In his public remarks, the Secretary also reiterated his department's priorities of expanding the nation’s affordable housing supply, reducing waste, and cutting regulatory barriers to dramatically speed up housing production. He urged the housing industry to embrace innovation and to do so now. “The talk is over. Status quo is done. Business as usual is not good enough…What you are doing here at Model/Z, the team that you have assembled, what you have done at SoLa Impact, at the Beehive, is absolutely wonderful. Thank you for being part of the solution.“
"As someone who lost my home and everything I own in the LA Fires, this is deeply personal," said SoLa Impact CEO and Founder Martin Muoto. “The experience only reinforces my commitment to SoLa’s work and the urgency by which we must respond. LA is facing a worsening crisis. The City must reform many of its processes that are currently delaying projects or preventing them from being built. It must embrace the private sector to drive innovation and cost-effective, practical solutions to affordable housing. We are committed to working with local leaders and the new administration to create lasting change."
Secretary Turner, LA Mayor Bass, SoLa's Martin Muoto and Gray Lusk and guests discuss the housing crisis in LA.
Secretary Turner tours a Model/Z ADU.
Secretary Turner meets graduates of the
Model/Z Vocational School.
CEO of LOGOS Faith Development
Pastor Martin Porter & Partners.
About SoLa Impact
SoLa Impact is a family of real estate funds with a double-bottom-line strategy focused on building high-quality, affordable housing in underserved and underinvested communities. Based in South LA, SoLa Impact was recognized as California’s largest private developer of workforce and affordable housing. SoLa’s proven track record leverages data-driven social impact strategies to deliver superior financial and social returns. SoLa Impact has invested over $1.5 billion in workforce and affordable housing in Southern California using private capital and Opportunity Zones.
About Model/Z
Model/Z's mission is to create radically affordable housing and eradicate homelessness in America. Designed and led by former SpaceX engineers and automotive executives, Model/Z utilizes AI and volumetric modular manufacturing to deliver affordable housing at a significantly lower cost, in less time, and with minimal waste. Model/Z's flagship facility in the Watts community of Los Angeles has created hundreds of local living-wage jobs as well as a leading vocational program aimed at uplifting the community.
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