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# Housing wish list could be a reality
- URL: https://www.smdp.com/housing-wish-list-could-be-a-reality/
- Published: 2005-11-25T16:00:00.000Z
- Updated: 2026-10-23T08:14:27.000Z
- Author: Ryan Hyatt
- Tags: Real Estate & Housing, Pico, #archive-import

*Condo construction likely to begin in ’08*

PICO NEIGHBORHOOD — Santa Monicans hopeful to be able to afford a home may soon be living their American dream, if they’re willing to go through a few hoops to attain it.

The Santa Monica City Council last month approved the creation of an affordable homeownership development to be located at 1943-1959 High Place. The program — to be financially-backed by City Hall and organized by the nonprofit Community Corporation of Santa Monica (CCSM) — will be the first local homeownership plan geared toward moderate income-level households, officials said.

CCSM is proposing to develop 40 affordable condominium units in the Pico neighborhood along the east side of High Place, between Virginia Avenue and the Santa Monica Freeway. The site measures 36,000 square feet and currently includes seven buildings, of which 14 units are rent-controlled, according to city staff.

Each of the two-bedroom condominium units will be built to accommodate four people, said Joan Ling, CCSM director overseeing the project.

Construction will not likely begin for another three years, she said, with buyers to be determined between now and then.

City officials are excited about the program and assume there will be high demand for it. However, City Manager Susan McCarthy recently expressed concerns, shared by others, how such a program would be administered in a way that’s fair, especially since obtaining affordable housing is an ongoing challenge in a city where real estate costs continue to escalate.

“We need to be able to provide equitable ways to give people access to the units,” McCarthy said at an October City Council meeting, when the program was discussed and approved. “In the past, we’ve set up lotteries and waiting lists to allow access to affordable units.”

Ling said the conditions for the program will ensure that the candidates who qualify are committed community members who will have a lasting impact on the city.

To qualify, Ling will be suggesting to City Hall that applicants be Santa Monica residents with a good credit rating and solid work history. Once they are preapproved, applicants will be required to take part in 120 hours of community service, which may be broken up into 10 hours of service per month. They will also have to take part in a counseling program that deals with home ownership and managing personal finances.

“Frankly, I don’t expect there will be a substantial list of (qualified) applicants,” Ling said. “We want people who are interested in building community and have the financial wherewithal to buy a unit.”

The affordable home ownership program for moderate income-level households was conceived in 2003 after CCSM held several public meetings in the Pico neighborhood.

To buy, each unit is expected to cost approximately $398,000, according to city staff. Of that, households earning $65,500 per year and whose bread winners have good credit should be able to qualify for a state-backed 30-year, $200,000 mortgage that has a 5-percent interest rate. The $200,000 mortgage loan will become the buyer’s contribution to secure the affordable unit.

To pay for the remaining $198,000, City Hall will kick in $168,000 for each unit. That will be paid for using City Hall housing funds and put toward land acquisition and construction costs.

A state subsidy of $30,000 per unit will make up the rest of the costs needed to support the program.

Housing costs are expected to account for 30 percent of household income at any point during the mortgage repayment period, based on an assumption bread winners will receive a 3-percent raise annually. The loan repayment will start at $1,074 per month. Combined with associated homeowner and utility fees and taxes, total housing costs are expected to run $1,609 per month.

After 10 years of ownership, it’s believed buyers in the program will have $119,212 in equity for their unit, according to the staff report.

Ling said the program will be widely advertised once CCSM is ready to move forward with the application process.

City Councilman Bobby Shriver said he was supportive of the program because it seems to be well-planned.

“I think this is a great concept, in part because of the level of detail with its financial analysis,” Shriver said. “I hope it raises the standard for other projects like this.”

*Originally published in the Santa Monica Daily Press print edition on November 25, 2005.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/112505.pdf?ref=smdp.com)