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Taylor Avakianat 50:26

If if you had to build a system, a better system than what's currently the situation with affordable housing, homelessness, the way that these deals are funded, like how would you build a system? What would that look like? Give me Have you ever thought about like what's the most efficient way for us to provide as much affordable housing as possible?

Taylor Avakianat 21:41

affordable housing. Mhm. What's been interesting to me being on the side of most of the private investors, I would say there's definitely a push and people are understanding the value of Section 8 vouchers and these emergency vouchers and they're questioning too because, you know, they have mortgages and they have things that they got to pay and the rent that's coming in from the government is allowing them to house these these people who need it, but if that's going to be going away, then what happens? Do we have…

Taylor Avakianat 45:28

…change any laws, you could do anything, whatever it is in the city of Los Angeles. We clearly I think from every person understands that there's an affordable housing crisis right now. There's a lot of people who don't love ULA, right? Which they feel has been negative in terms of the private people coming in developing and naturally having people move up. If you were in charge, you could change any law, you could do anything what you wanted to, you had ultimate power to say we're going to solve this issue." How…

Taylor Avakianat 0:08

Bob Buente is president and CEO of 1010 Development Corporation, a Los Angeles faith-based affordable housing developer and property manager.

Taylor Avakianat 0:42

…and not even worry about condominiums? Is there one skill set that you think is the most important when it comes to actually developing this affordable housing? I would say This episode is sponsored by Loan Titan, a leading residential financing loan company specializing in both conforming and non-conforming mortgage solutions. Loan Titan offers Fannie Mae, Freddie Mac, non-QM, and private money, hard money loan programs, helping borrowers who need flexibility beyond traditional lending guidelines or speed-driven…

Taylor Avakianat 1:41

…there. Recently, you've retired. Yes, I have. were introduced by a mutual friend. And, why I wanted to have you on the show is because you are an affordable housing provider, owner. Not one of these massive, huge organizations, more of a smaller shop, right? 400 or so units. So, walk me through 1010 Development. That's your That's your company.

Taylor Avakianat 5:11

Wow. Okay. So, you made it happen. Okay. So, you're telling me I'm thinking about this from a financial standpoint, right? People don't understand how how it works, but if someone's saying, "Okay, how are you going to build housing where your rents are capped? How do you make money? Where where [snorts] you know, what what what does that look like?" So, how do you make money in affordable housing? You want me to tell you the black arts? Please.

Taylor Avakianat 48:38

New tax dollars, new investments, new people, affordable housing. Right? Like let's let's make it a little bit easier for us to do what you said you need to do.

Taylor Avakianat 49:03

…at in that whole pendulum swing, but I'm really hoping so because uh I mean, you know, 2 weeks ago there was a a vote that changed the way that RSO housing is rental increases, and I did a video on um, 1920s buildings. And I've historically, that's where I started my business was selling a lot of these brick buildings in Koreatown. And that's some of the most affordable housing in the city. And they just basically chopped its knees off by not allowing it to have the excess rent increases because it's master…

Taylor Avakianat 50:00

…how about you run this and you lose money? And um we're going to make it so you lose a little more money now coming up. So, thank you for providing affordable housing. It's like, no. No one in their right mind is going to be Uh you know, giving losing money on an investment. These are investments. There's risk associated with that. Um Why would anyone spend their money to go and do that? And it it just kind of baffles me that These are these are the decisions that are being made by uh people who say one thing and…

Taylor Avakianat 55:47

…Let me share some of the wisdom things that I've learned and go, you go be free. Do do what your heart desires. Go be the biggest, baddest affordable housing developer, builder, whatever you want to do. But I'm going to give you the tools and some mistakes that I made and help you try to achieve those

Taylor Avakianat 33:04

…you know you want the tenants to have an experience that is not one of um how we how should we say like slum Lord you know like when you're in the affordable housing space yeah there's a stigma around having this kind of like you know the cheapest Renovations the least amount of money that you got to put into it because you're trying to maximize what your income the cash flow you're getting from it but you've clearly taken a different approach to that which seems like

Taylor Avakianat 40:43

…is if you want ants to come put sugar on the floor and basically it's like with the right incentives which is bringing me back to this point of housing in Los Angeles and it's it really really does bug me because clearly the incentives are not aligned with the way that um people say that they want housing they want affordable housing clearly you went to North Carolina maybe they're being more incentivized to do that but they're disincentivizing investors developers people like yourself wanting to invest money uh…

Taylor Avakianat 0:48

…estate markets in the world Southern California enjoy welcome to the podcast my name is Taylor Ven and my esteemed guest who knows everything about affordable housing in Southern California Dan tabom is here to tell us about everything he was actually on the inside of the city and dealt with the city council and worked on some boards and governments and so he's going to tell us all about that Dan thank

Taylor Avakianat 9:02

awesome um so then walk me through how you became part of this affordable housing you know U how how you became part of Los Angeles affordable housing community because you eventually ended up working for hacka right the city of Los Angeles and so walk me through how

Taylor Avakianat 51:31

affordable housing. Interesting.

Taylor Avakianat 1:55

Let Citizens focus on your wealth so you can focus on your world. Connect with a banker at citizensbank.com/novacancy. Member FDIC, Equal Housing Lender. This episode is with Jeff Jaeger. It was absolutely incredible. Jeff is one of the smartest people I know when it comes to affordable housing. His company, Standard Communities, owns 30,000 units across the entire country and wants to get to 50,000 by 2030. We talked about where affordable housing was when he started back in 2001 to where it is today and what that…

Taylor Avakianat 57:04

right? And they probably at 100 bucks a foot and at 80 bucks a foot or something crazy like that. Right? So, like and then everyone's like, oh, well, why can't we build affordable housing at scale?

Taylor Avakianat 37:36

provide more affordable housing, but all everything else all the headwinds make it almost impossible to actually build something like that. So, I'm interested to follow what some of these state bills are going to be doing from an affordable perspective if they're going to be allocating certain bond funds. And I mean, they have what 20 they they spent $24 billion on homeless housing, which I don't know where that went. Um, so there's money to be had, right? So I'm curious, uh, because there's so many conspiracies…

Taylor Avakianat 17:23

affordable housing yeah what's the story with Noah what's what's I I keep hearing that more and more and I wanted to ask you too on where you think the future of multif family existing in development is because it seems like the more and more that people are thinking about what's next it's affordable it's uh you know Section 8 it's it's tax credits it's these things that are pushing the Divide from the wealthy and the not as wealthy because we're having this housing housing shortage and so where do you think the…

Taylor Avakianat 38:21

…up the formula to calculate how much you can increase the rents and things like that which on the surface I you know obviously we want to make housing more affordable but H how do you feel

Taylor Avakianat 11:03

we have a housing shortage and it seems like they're not doing very much to to make that easier for developers like you it's I sound like a broken record because I say it almost every time but it's they everyone knows we have a housing housing shortage in Los Angeles why do the rents keep coming up because supply and demand that is the fundamentals of why your rent keeps going up it's because there's not enough housing for everyone else and when it's harder to develop that only constrains the supply where it…

Taylor Avakianat 49:16

…have to pay ULA transfer tax, which is a big one. Um which makes the the numbers a little bit juicier. Have you guys ever thought about going into affordable? I know affordable is a big, big talk right now with California and LIHTC and the way that housing has become so unaffordable that there's a lot of programs,

Taylor Avakianat 1:00:18

…I think if you're going to make business decisions that affect not only your tenants, your constituents, but the landlords who are providing the housing, you should at least be a landlord or understand what goes into running a building. Because if you don't, if you don't understand what's behind that and you're making these broadstroked decisions, the downstream effects, like you said, it cascades much farther than just real estate. It cascades much farther than just the rent the tenants are paying. It's the jobs…