An L.A. developer has a new approach to the so-called tenancy-in-common, or TIC, model, in which residents share ownership of the property. Instead of converting old, rent-controlled buildings into TIC properties, the developer is replacing single-family homes with new townhomes.
Some real estate experts said the model could help the region’s gaping affordable-housing problem, particularly after a new state law opened more areas to similar development.
— The Los Angeles Times
S.B. 9 allows for up to four units to be built on plots formerly reserved for single-family developments exclusively. Since the bill was enacted, many investors have begun to demolish single-family units in order to construct the newer TIC model of townhouses, which was supposedly pioneered by a developer called B&A Group.
The actual product of the new buildings, and whether or not their typically under-market rate but restrictive $700,0000–$800,000 price tags are in the end going to displace working-class residents living in cheaper rental units in LA neighborhoods like West Adams is a major concern for people like neighborhood council president Steven Meeks.
“Cheaper for who?” he told the LA Times of costs, which would fall under the category of a mansion in many other places. “What person in this neighborhood is going to afford that?”
1 Comment
we see crying babies who keep saying we need more housing and densification, and when policy changes to allow it, it's not doing what it's supposed to be, people demolish old housing to build more just to raise the rent and property price. Then some groups come out and complain about gentrification. It makes me recall a recent interview of the mayor of Inglewood, the interviewer asked how the mayor is going to prevent gentrification with the development of the two stadiums, and the mayor said, that's what we want! We can people who can afford to pay tax to come, not poor people.
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