Los Angeles-Led Team Closes Largest Transaction in HACLA History
Los Angeles, Calif. (November 30, 2022) - Los Angeles Partners Alexis Crump and Brant Dveirin, with Temecula Partner Edward Corwin and New Orleans Associate Jessica Hidalgo, recently closed the Housing Authority of the City of Los Angeles’ (HACLA) acquisition of the Extended Stay of America hotels in Los Angeles. This purchase, the largest in HACLA history, represents one component of the City of Los Angeles’ and HACLA’s joint efforts to resolve the unhoused problem plaguing the city.
In discussing the transaction, Ms. Crump noted, “I am a resident of the Los Angeles metropolitan area, and I have seen how the unhoused situation has affected all residents – those who are unhoused, those trying to maintain their property values, and those trying to maneuver safely in this new environment. It was truly an honor to be involved in this meaningful undertaking to effect change on a number of levels."
Funding for the HACLA transaction was provided through the California Department of Housing and Community Development’s (HCD) HomeKey Program. HCD established this program during the COVID-19 pandemic to direct approximately $1.4 billion in grant funding to public entities for the purpose of converting commercial properties and other existing buildings to permanent or interim housing for those at risk of homelessness. The funding for transactions such as HACLA’s acquisition of the Extended Stay of America hotels was initially made available pursuant to a mandate by the City of Los Angeles and the State of California to set aside monies for cities impacted by the pandemic and increased homelessness.
Over the last 18 months, HACLA and the City of Los Angeles have completed a substantial number of HomeKey Program purchases and Lewis Brisbois has been involved in six of those acquisitions. Mr. Dveirin stated, “We have a long-term relationship with HACLA as its outside counsel and we were pleased to participate in the HomeKey Program. HACLA has been a true leader in addressing issues with the unhoused and we look forward to assisting with its continued success.”
Significantly, as Los Angeles has attempted to address the unhoused problem through various initiatives, homelessness emerged as a central bipartisan issue during the city’s recent mayoral election with both Karen Bass and Rick Caruso discussing the matter throughout their campaigns. It is expected that Mayor-elect Karen Bass now will carry out an even more aggressive approach to address homelessness as she assumes her new role.
Established in 1938, HACLA is the second largest and second oldest housing authority in the United States, after the New York City Housing Authority. Learn more about HACLA here.
Ms. Crump serves as a co-chair of Lewis Brisbois’ Commercial Lending Practice and as a vice-chair of its Corporate and Italy Practices. Mr. Dveirin and Mr. Corwin are members of Lewis Brisbois’ Real Estate & Land Use Practice, with Mr. Dveirin also serving as a member of the firm’s Public Agency & Municipal Law Practice. Ms. Hidalgo is a member of the Corporate and Complex Business & Commercial Litigation Practices.