Investment in Crate Modular will expedite development of new 216-unit, 15-story low-income complex on Skid Row in Los Angeles and secure resources for additional housing
LOS ANGELES–(BUSINESS WIRE)–AIDS Healthcare Foundation (AHF) has purchased a majority stake in Crate Modular, a leading producer of prefab modular multifamily, supportive housing and educational buildings. The two parties finalized the agreement at the end of May.
As part of the arrangement, Crate and AHF will continue to run their businesses independently. Crate will produce the modular housing units for AHF’s planned Renaissance Center, a 216-unit, 15-story low-income housing complex on Skid Row in Los Angeles. Crate also will serve as a preferred vendor on other AHF low-income housing developments moving forward.
Since 2017, AHF – through its Health Housing Foundation (HHF) – has been buying and renovating older buildings, a process known as “adaptive reuse,” to create more affordable housing in California, New York, Florida, Georgia, and Texas. It has brought more than 1850 units online so far, with hundreds more in the pipeline.
“Traditional construction is too costly in time and resources to create more affordable housing quickly,” said Michael Weinstein, president of AIDS Healthcare Foundation. “Modular construction is another solution in addition to adaptive reuse. To bring this to fruition, we worked with five other modular partners, but for various reasons, none of them worked out. Crate Modular would have closed their doors had we not stepped in with an investment. The national homelessness crisis is escalating rapidly, and AHF is committed to being part of the solution wherever we can.”
“Crate’s approach to building shortens the development cycle compared to conventional site-built construction, reduces waste, and produces stronger and far more durable buildings. Our goal is to bring cost efficient, high quality, problem free building solutions to each of our clients,” said Rich Rozycki, chief executive officer of Crate Modular. “We are grateful for AHF’s investment and partnership and are excited to help meaningfully address the need for affordable low-income housing in Los Angeles and wherever AHF and other clients may seek to fill this rapidly growing need.”
In June, officials revealed the 2023 homeless count in Los Angeles County increased nine percent to 75,518 homeless people and in the City of LA by 10 percent to 46,260 individuals, underscoring the need for more lower-cost, affordable housing now.
Contacts
Ged Kenslea, AHF Senior Communications Director
(323) 791-5526
gedk@aidshealth.org
