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NOTABLE SALE
THE ISLES SINGLE-FAMILY RENTAL COMMUNITY

MARKET: Roseville
ASSET TYPE: SINGLE FAMILY
SALE PRICE: $57,700,000
BUYER: SFR V TRANCHE

The property included 135 homes built by D.R. Horton, offering single-family rentals with rents starting at $3,195 a month. Indicating the increasing trend of single-family rental properties selling like multifamily

COMMERCIAL REAL ESTATE
CRE SALES HAVE FALLEN TO LOWEST LEVELS IN 13 YEARS

NEWS
FIRE INSURANCE RATES IN CALIFORNIA TO INCREASE SIGNIFICANTLY

ARTICLE TLDR

• Fire insurance rates in California are expected to increase significantly in the coming months.

• This is due to a number of factors, including the rising cost of rebuilding homes after fires, the increasing frequency and severity of wildfires in California, and the fact that insurance companies are paying out more in claims than they are taking in in premiums.

• Homeowners should be aware of the potential for rate increases and shop around for the best coverage for their needs.

California homeowners should expect to pay significantly more for fire insurance in the coming months, according to a recent article in The Real Deal.

The article cites a number of factors for the increase, including the rising cost of rebuilding homes after fires, the increasing frequency and severity of wildfires in California, and the fact that insurance companies are paying out more in claims than they are taking in in premiums.

Insurance experts quoted in the article say that rates could increase by 20 to 30 percent starting next month. This is a significant increase, but it is important to note that rates can vary depending on a number of factors, such as the location of the home, the age and construction of the home, and the amount of coverage desired.

The California Insurance Commissioner's Office is speeding up the rate approval process for insurance companies in an effort to make more fire insurance options available to homeowners. However, this is also expected to lead to higher rates.

Here are some tips for California homeowners who are facing fire insurance rate increases:

Shop around and compare quotes from multiple insurance companies.

Consider raising your deductible to reduce your premiums.

Look for discounts, such as discounts for bundling your home and auto insurance or for having a fire alarm system.

Make sure you have enough coverage to rebuild your home and replace your belongings in the event of a fire.

If you are unable to afford fire insurance from a private company, you may be eligible for coverage from the California FAIR Plan. The FAIR Plan is a state-run program that provides fire insurance to homeowners in high-risk areas.

Homeowners should also take steps to reduce their wildfire risk, such as clearing brush away from their homes and installing fire-resistant roofing and siding.

DEVELOPMENT
MIXED USE PROJECTS GET GO-AHEAD IN MONTECITO HEIGHTS AND BEVERLY GROVE

The Los Angeles City Planning Commission has given the green light to two mixed-use projects that will bring more housing and commercial space to the city. The projects are located in Beverly Grove and Montecito Heights, two neighborhoods that have seen increasing development activity in recent years.

Beverly Grove Project

The Beverly Grove project is a seven-story building that will rise south of La Cienega and Santa Monica Boulevards, near the border with West Hollywood. The project will feature 59 apartments, including seven very low-income units, and 8,795 square feet of ground-floor commercial space. The developer is 961 La Cienega, LLC and the architect is AUX Architecture.

The project will benefit from density bonus incentives, which allow developers to build more units than normally allowed in exchange for providing affordable housing. The project will also include a rooftop deck, a fitness center, a bike room, and 77 parking spaces.

Montecito Heights Project

The Montecito Heights project is a four-story building that will rise at the southwest corner of Huntington and Moonstone Drives, on the border with El Sereno. The project will feature 22 apartments, including four very low-income units, and 437 square feet of ground-floor commercial space. The developer is 4215 Huntington Drive North, LLC and the architect is David Gonzalez Rojas.

The project will also benefit from density bonus incentives, as well as a conditional use permit, which allows developers to build in areas that are not zoned for residential use. The project will also include a rooftop deck, a community room, a bike room, and 22 parking spaces.

Opposition and Approval

Both projects faced opposition from some neighboring residents who expressed concerns about the scale, intensity, gentrification, and displacement effects of the developments. Some residents also argued that the projects did not fit the character of their communities or provide enough affordable housing or parking.

However, the Commission approved both projects as part of the consent calendar on October 12, 2023. This means that the projects did not require a presentation or discussion by the Commission or the public. The projects will now move forward to the next stages of the approval process.

POLITICS
L.A. MAYOR FIGHTS FOR HOUSING RIGHTS

ARTICLE TLDR

• L.A. Mayor Karen Bass met with the federal VA Secretary to urge him to change a rule that prevents many unhoused veterans with disabilities from accessing housing on the West L.A. VA campus.

• The blog post also reported that two apartment buildings on the campus that opened in May for unhoused veterans were still mostly vacant due to various delays and challenges.

L.A. Mayor Fights for Housing Rights of Unhoused Veterans

L.A. Mayor Karen Bass is on a mission to secure housing for unhoused veterans in the city, especially those with disabilities. She recently traveled to Washington, D.C. to meet with the federal Veterans Affairs Secretary and urge him to change a rule that blocks many veterans from accessing government-funded housing on the West L.A. Veterans Affairs campus.

The rule, which counts veterans' federal disability stipends as income, can make some veterans ineligible for housing vouchers that would allow them to live in apartments that were specifically built for them on the campus. This has left hundreds of unhoused veterans with serious disabilities out in the cold, while the apartments remain mostly empty.

Bass said she was frustrated by the response she got from the VA Secretary, who told her that he could not change the rule through a regulation change and that it would require legislation from Congress. Bass said she would not give up and that she would continue to lobby and advocate for the veterans, who deserve dignity and respect.

The West L.A. VA campus, which spans 388 acres, has been under scrutiny for years for its underutilization and mismanagement. In 2015, a federal judge approved a settlement that required the VA to create a master plan to revitalize the campus and provide more housing and services for veterans.

As part of the settlement, two historic buildings on the campus were restored and converted into 120 apartments for unhoused veterans. The buildings opened in May 2023, but as of late July, they were still mostly vacant. The reasons for the delays include bureaucratic hurdles, paperwork issues, and COVID-19 protocols.

Bass said she was disappointed by the slow progress and that she would work with the VA and other stakeholders to expedite the process and fill the units as soon as possible. She said she was committed to ending veteran homelessness in L.A., which has the largest population of unhoused veterans in the country.