South Bay housing trust approves $6M loan for affordable housing in Hawthorne

The South Bay Regional Housing Trust has officially approved its first funding agreement to create affordable housing, with Hawthorne set to receive a $6 million loan to build an apartment complex where all units are deemed affordable.

"This project brings public and private partners together to build affordable housing in Hawthorne," said Hawthorne Mayor Alex Monteiro, "something our community hasn't had since the 1990s."

The 93-unit building, dubbed the Cordary Avenue Apartments, will be developed on underutilized, city-owned land at 14115 Cordary Ave. and will feature a central courtyard, play area, community room, on-site resident services, on-site property management, laundry facilities, secured bike parking and 54 parking spaces. Sixty-nine of the units will have one bedrooms and 24 will be two-bedroom units.

All of the proposed rental units will be restricted to households with 30-70% of the area's median income. Per the rules of the South Bay Regional Housing Trust, 25% of trust-funded units must be restricted to households earning at or below 30% AMI and another 25% must be restricted to households earning at or below 50% AMI.

This means that 22 one-bedroom units will have a monthly rent of $852, 13 will be $1,420 per month, 21 will be $1,404 per month and 13 will be $1,988 per month. Seven two-bedroom units will have a monthly rent of $1,022, four will be $1,703 per month, four will be $2,044 per month and eight will be $2,214 per month.

"Our data shows that seniors and small working-class families are experiencing an increase in housing insecurity, especially families in our school districts," Jacki Bacharach, interim director of the South Bay Regional Housing Trust, said in a written statement. "These units could help prevent future households from being displaced."

The South Bay Regional Housing Trust formed in April with the mission of creating affordable housing in the South Bay.

So far, 11 cities in the region have joined the trust: El Segundo, Hawthorne, Hermosa Beach, Inglewood, Lawndale, Lomita, Manhattan Beach, Rancho Palos Verdes, Rolling Hills Estates, Redondo Beach and Torrance. The coalition will utilize recently obtained funding from Los Angeles County's Measure A to help create affordable housing in the South Bay.

"By joining the South Bay Regional Housing Trust," Lawndale Councilmember Bernadette Suarez, chair of the South Bay Cities Council of Governments, said in a written statement, "our cities, including my City of Lawndale, can benefit from a coordinated, regional approach to housing production and homeless services, while explicitly maintaining full control over local land-use decisions."

Housing, for the most part, is only affordable in the South Bay for a household that makes six figures, according to a presentation by the SBCCOG. Data compiled from 2022 to 2023 shows that while more than 4,000 homes requiring "above moderate income" were built, fewer than 500 homes were built that are affordable for a household with "moderate" income or less.

There is not necessarily a lack of housing development, Bacharach said, but there just are not enough affordable options available.

"They'll build a 200-unit building with only 10 affordable units," she said, "and that creates new density with a very little affordable component."

That's why it is significant that Cordary Avenue Apartments will be filled with 100% affordable units.

"We have an opportunity to really kick off this housing trust and do exactly what we're all here to do, which is to find ways to build affordable housing in the way that local jurisdictions want," Nina Tarnay, an SBRHT board member from Manhattan Beach, said just prior to the vote to approve the Hawthorne loan. "This is what they want; they've (Hawthorne) put skin in the game as well. So I think these are the types of projects I would be happy to support."

In addition to the trust's $6 million loan, the developers, Adobe Communities, will receive $7 million from Hawthorne, $10 million from the Los Angeles County Development Authority and additional funding from other loan servicers.

The trust's $6 million loan will have a 3% interest rate over the 55-year contract - making additional money that will go toward affordable housing projects.

"The SBRHT has lending authority and can provide soft development loans, construction pre-development loans, preservation/acquisition stakes, master leasing and direct service/homebuyer assistance programs," the South Bay Regional Housing Trust said in a press release. "These approaches will generate revenue and allow for these public dollars to come back to the trust over time and be reprogrammed to maximize their use."

The Cordary Avenue Apartments project is planned to break ground on Nov. 1, 2027, with an anticipated completion date of Sept. 1, 2029.

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This story was originally published June 3, 2026 at 10:16 AM.