ED1 rent prices

June 22, 2024
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​
QUICK LOOK AT RENT PRICES
  • ED1 buildings are required to have either 100% Low Income units or 
  • 80% Low Income units + 20% Moderate Income units. (ATC Research)
  • ED1 projects are not required to build units for Very Low or Extremely Low Incomes. (ATC Research)
  • ED1 projects are not required to take vouchers. (ABC News)
  • ED1 projects are not publicly funded. (Calmatters.org)
  • ​92% of ED1 units are Studios or One-Bedrooms. (ATC Research)

The prices below increased August 2024. The page hasn't been fully updated to reflect the higher prices.

80% OF ED1 UNITS COST:
These are explained lower on the page in ED1 Prices: The Details
  • Studio Low Income = $1766  (majority are this type)
  • Studio Moderate Income = $2647
  • 1 Bedroom Low Income = $1892  (majority are this type)
  • 1 Bedroom Moderate Income = $2837
  • 2 Bedroom Low Income = $2270
  • 2 Bedroom Moderate Income = $3403

20% OF ED1 UNITS COST:
These are explained lower on the page in ED1 Prices: The Details
  • Studio Low Income = $971
  • Studio Moderate Income = $1781
  • 1 Bedroom Low Income = $1110
  • 1 Bedroom Moderate Income = $2035
  • 2 Bedroom Low Income = $1249
  • 2 Bedroom Moderate Income = $2035

For comparison, in Council District 1, Rent-stabilized units average between $1,100 and $1,500. (Urbanize LA) But rent-stabilized units are often larger than ED1 units, resulting in much more livable and affordable units. The prices above generally double a tenants rent per square foot, in some cases triple it, because their square footage is getting cut in half. More info: No Space

For context, under ED1:
  • A studio can be 167 square feet, size: a parking space. (Note: The Schedule 9 chart below says 1 person fits)*
  • 1-bedrooms can be 350 square feet, size: interior of a school bus. (Chart says 1.5 people fit)
  • 2-bedrooms can be 525 square feet, size: two cars next to each other with door open. (Chart says 3 people fit)
  • The average non-ED1 studio is 400-600 square feet. (Bungalow.com) The average LA apartment is 787 square feet.
  • *We know of two tenants in a livable-sized, rent-stabilized studio who are being evicted for an ED1 building. Their landlord is giving them their legal right to return to an ED1 unit, which is only to the same bedroom type, not the same size. So the two people will be living in 167 square feet of space.​ ​
WHO IS LOW INCOME
IN LA?
​ ​"If your household earns less than the amount
​shown for a household of your size, you qualify as Lower Income"
(Los Angeles Housing Department)

All maximum earnings changed August 2024.
​One person earning $77,000 is now Low Income.
Note: We're assuming most low income people didn't receive a $7,000 raise between 2023-2024, yet the chart jumped $7,000 in one year. See 2023 chart:​

​These are Annual Maximum Incomes.
Picture
LA Housing Department document given to RSO tenants after receiving a no-fault eviction for an ED1 project
ANNUAL MAXIMUM INCOME
​​CATEGORIES​
Annual Maximum Income categories are designated by using percentages of the Area Median Income (AMI).

​Area Median Income is a type of average income. Los Angeles Area Median Income is high because higher-income areas, like Brentwood, Pacific Palisades, and Bel Air, are averaged with lower income areas. ​

Note: All maximum earnings increased August 2024.
This page doesn't reflect those changes. The numbers below were true through July 2024.


AMI
Area Median Income (for one person) in LA in 2023 was $98,2000
AMI in 2022 was $91,100
NET AMI in 2022 was $87,750
NET AMI for 2022 is what they're using for the percentages below in 2024
​

MAXIMUM INCOME CATEGORIES​
Extremely Low Income = Maximum income is $26,500 a year (30% of AMI)
Very Low Income = Maximum income is $44,150 a year (50% of AMI)
​Low Income = Maximum income is $70,650 a year (80% of AMI)
Moderate Income = Maximum income is $105,960 a year (120% of AMI)​ ​
​
ED1 Projects aren't required to have units for Extremely Low or Very Low Income households


AVERAGE LA INCOMES
12 of the 15 council districts in LA have incomes less than $70,760 per year.
According to the LA 2020 Census, only 3 Council Districts have median household incomes that are not considered low income, meaning they earn more than $70,760:

Council District 15     $49,571
Council District 14     $40,300
Council District 13     $36,342
Council District 12     $81,750
Council District 11    $85,022
Council District 10    $36,506
Council District 09    $29,561
Council District 08    $32,283
Council District 07    $58,066
Council District​ 06    $46,767
Council District 05    $80,723
Council District 04    $69,364
Council District 03    $67,639
Council District 02    $50,070
Council District 01    $32,375

This means the "Low Income" Affordable Housing isn't affordable by federal standards for 80% of LA.

Want to find your council district? Click here

LA CENSUS 2020: https://census.lacity.gov/sites/g/files/wph1201/f/a_Council%20District%20maps_FINAL_0.pdf
TYPES OF UNITS
​IN EDI PROJECTS
94 % of [ED1] units are designated for Low or Moderate Income Households
(ATC Research)
​
Types of units in ED1 projects
Picture
Image from ATC Research, June 18, 2024
​​WHAT IS 100% AFFORDABLE
​ED1 HOUSING?
From the LA City Planning Department Executive Directive 1 webpage:
​
"For the purposes of implementing ED 1,
a 100% affordable housing project is defined as:

A housing project with five or more units,
and with all units affordable either at 80% of Area Median Income [$70,650 - Low] or lower (HUD rent levels),
or at mixed income with up to 20% of units at 120% AMI [$105,960 - Moderate] (HCD rent levels)
and the balance at 80% AMI [$70,650 - Low] or lower (HUD rent levels)..." 

This means there are two options:
OPTION 1 - 100% Low Income
OPTION 2 - 80% Low Income + 20% Moderate Income

Based on the above definition:
ED1 DOES NOT REQUIRE 100% AFFORDABLE ED1 PROJECTS TO
BUILD UNITS FOR VERY LOW OR EXTREMELY LOW INCOMES
​
To read a more simplified reference (the Executive Directive 1 webpage is complex), click (ATC Research)
​WHY IS MODERATE INCOME INCLUDED
​IN 100% AFFORDABLE HOUSING?

​Moderate Income units cost 40% more than Low Income units. How can there be Moderate Income units in 100% Affordable housing? Governor Gavin Newsom approved Assembly Bill 1763 in 2019, written by David Chiu, which essentially changed the definition of "100% Affordable" from 100% Low Income units to 20% Moderate Income and 80% Low Income units or 100% Low Income units.​ (BBK Law)
MEDIAN VS. AVERAGE
INCOME
You'll see in the charts below that instead of "average income," the city uses "area median income." What's the difference between area median income and average income?

"To determine the average household income, all household incomes are added up and divided by the total number of households. By contrast, the median household income is the income level earned by a household in a designated demographic area, where half the households earn more and half earn less." (Investopedia.com) 

​If we understand correctly...

Average is like taking all the incomes, putting them in a pile and then splitting it.​​
Area Median is like putting all the incomes in a line and then pointing to the middle of the row
​ED1 PRICES:
THE DETAILS
​​​
​If we understand this LA Housing Department Land Use Rent Income page from April 24, 2024 correctly, the following are the rental prices for units in Executive Directive 1 buildings.

​Note: The city uses the term "Land Use Schedule." A schedule is like a "table of prices" used for different scenarios.
​​
  • 80% of ED1 units are priced using Schedule 9 [Higher rental prices than Schedule 6] 
  • 20% of ED1 units are priced using Schedule 6 

For buildings to be "100% Affordable" according to ED1, they have two options.

OPTION 1
​100% Low Income units
OR 

OPTION 2
​80% Low Income units + 20% Moderate Income units
According to ATC Research, 93.5% of ED1 projects are using this option.

STUDIO EXAMPLE
​Here is an example if all the units in the building were studios only
This would be for about 165 square feet
​One person would be paying alone
Note: ED1 is supposed to be for unhoused people
​Vouchers aren't required to be accepted

OPTION 1
This averages to $1607 per unit
OPTION 2
This averages to $1780 per unit

For comparison, in Council District 1, Rent-stabilized units average between $1,100 and $1,500. (Urbanize LA) This can be for one or two-bedrooms.

A NOTE FROM THE CITY

City of LA Memo about Schedule 9

  • "Beginning Jan 1, 2024, Land Use Schedule 9 is applied to 100% affordable housing projects..."
  • ​The units "are for lower income households... except that up to 20% of the units in the development may be for moderate-income households."
  1. "The rent for at least 20% of the units in the development shall be set at an affordable rent... Land Use Schedule 6  for projects without City funding..." [ED1 is without City funding.]
  2. "The rent for the remaining units in the development shall be set at an amount consistent with the maximum rent levels for lower income households... Land Use Schedule 9"
  • "Historically, Land Use Schedule 1 was applied to the remaining units noted in (2) above. However, Land Use Schedule 9 is consistent with actual CTCC rents. Effective January 1, 2024, Land Use Schedule 9 will be applied to all new covenant applications..." [We're guessing that means for older ED1 projects approved before 1/1/24, Schedule 1 is applied. Schedule 1 rental prices are higher than both Schedule 6 and Schedule 9. See links, or scroll down.] ​ ​

schedule 6 - 20% of units

  • "The rent for at least 20% of the units in the development shall be set at an affordable rent... Land Use Schedule 6." (City of LA)
  • ​"Low" income for one person is $70,650 (80% AMI - of $87,750 the NET AMI of the area median income of LA in 2022), see 1st chart below. 
  • "Moderate" income for one person is *$82,500, see 1st chart below. <-- *It should be $105,960 if doing the math correctly (120% of NET AMI - of $87,750 the NET AMI of the area median income of LA in 2022)
  • June 18th, ATC Research shared that 94% of ED1 units are Low or Moderate Income, instead of Very or Extremely Low.
  • Look at the rows labeled Low and Moderate to find these prices.
  • 92% of ED1 units are Studios or One-Bedrooms.
  • Look at those columns.
​
QUICK LOOK AT PRICES
  • Of all the units in the building, whatever type, only 20% use these prices.
  • Studio / Single Low Income = $971
  • Studio / Single Moderate Income = $1781
  • 1 Bedroom Low Income = $1110
  • 1 Bedroom Moderate Income = $2035
  • 2 Bedroom Low Income = $1249
  • 2 Bedroom Moderate Income = $2035
​
  • The studios being referred to here can be 167 square feet. (size of a parking space)
  • The one-bedrooms can be 350 square feet. (size of the interior of a school bus)
  • The two-bedrooms can be 525 square feet. (size of two cars next to each other with doors open)
  • "Analyzing a database of 7.5 million apartment units nationwide, consulting firm RCLCO found that units under 350 square feet secured average per-square-foot (psf) rents 92% higher than larger units... In high-end markets like San Francisco and Washington, DC, rent premiums reached up to 300% for smaller units."
  • Micro-units, like the units being built under ED1, have rents that are higher per square foot than larger units. More info: No Space
​
SCHEDULE 6

schedule 9 - 80% of units

  • "The rent for the remaining units in the development shall be set at an amount consistent with the maximum rent levels for lower income households... Land Use Schedule 9." (City of LA)
  • ​"Low" income for one person is $70,650 (80% AMI - of $87,750 the NET AMI of the area median income of LA in 2022), see second chart below.
  • "Moderate" income for one person is $105,960 (120% AMI - of $87,750 the NET AMI of the area median income of LA in 2022), see second chart below.
  • Of all the units in the building, whatever type, 80% use these prices.
  • "Single" is a studio, which can be 167 square feet. (note that the chart says 1 person fits)*
  • 1-bedrooms can be 350 square feet. (note that the chart says 1.5 people fit)
  • 2-bedrooms can be 525 square feet. (note that the chart says 3 people fit)
  • The average non-ED1 studio is 400-600 square feet.
  • *We know of two tenants that live in a livable-sized rent-stabilized studio who are being evicted for an ED1 building. Their landlord is giving them their legal right to return to an ED1 unit, which is only to the same bedroom type, not the same size. So the two people will be living in 167 square feet of space.

 June 18th, ATC Research shared that 94% of ED1 units are Low or Moderate Income. 
  • Look at the row labeled 80% AMI to find prices for Low Income.
  • Look at the row labeled 120% AMI to find prices for Moderate Income.

​June 18th, ATC Research shared that 92% of ED1 units are Studios or One-Bedrooms.
  • Look at the Single and 1-BR columns with the 80% and 120% rows to see the majority of ED1 prices.
  • Of all the units in the building, whatever type, 80% use these prices. 
  • Studio / Single Low Income = $1766
  • Studio / Single Moderate Income = $2647 
  • 1 Bedroom Low Income = $1892
  • 1 Bedroom Moderate Income = $2837
  • 2 Bedroom Low Income = $2270
  • 2 Bedroom Moderate Income = $3403

​Note: These prices are higher than Schedule 6.
Also, please note the one-bedrooms are for 1.5 people. These can be 350 square feet. The two bedrooms can be 525 square feet, not even double the one bedroom, but the chart says they are for double the people- 3.
​
SCHEDULE 9

schedule 1 - 80% of units prior to 1/1/24

Before January 1, 2024, Land Use Schedule 1, below, was applied to 80% of ED1 units. We're guessing that means that ED1 buildings approved before January 1, 2024 use the rental prices below for 80% of their units.
​ 

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