HACLA Announces Assignment of an ‘A-‘ Rating to Multifamily Housing Revenue Bonds for Clarendon Apartments

On December 11, 2024, Fitch Ratings assigned an 'A-' rating to the Housing Authority of the City of Los Angeles (HACLA) Multifamily Housing Revenue Bonds for the Clarendon Apartments project. HACLA will issue approximately $88.7 million in tax-exempt 2024A Senior bonds later this month to acquire the property.

In addition to the senior debt, the property acquisition will be funded by the issuance of subordinate bonds, a program-related investment loan from the California Community Foundation organized through Mayor Karen Bass's LA4LA initiative, and an equity investment from HACLA.

HACLA will lend the bond proceeds to its instrumentality Housing Pathways, Inc., to acquire the property, which is a 335-unit multifamily property located at 22121 Clarendon Street. Following acquisition, units in the property, which is currently predominantly market-rate housing, will be converted to rent and income restricted units that are affordable to families earning between 30% and 150% of area median income.

The property is located within a state-designated Highest Resource Opportunity Area in the Woodland Hills neighborhood of Los Angeles, and includes a range of amenities for residents, including two pools, an exercise facility, and a dog run.

The 'A-' rating from Fitch will allow HACLA to sell the bonds to investors at low interest rates, and in turn support the conversion of units to affordable housing.

HACLA is thrilled to have received this strong rating from Fitch for our $88.7 million of Clarendon Series A bond issuance, which reflects great confidence in our strong track record of operating performance and our rigorous approach to underwriting. We look forward to welcoming the Clarendon Apartments into the HACLA portfolio and continuing to use every available tool to add to the supply of affordable housing in the City of Los Angeles.