The Los Angeles Unified School District is advancing efforts to create affordable housing for its employees by transforming underutilized district-owned properties into potential workforce housing. The LAUSD Board of Education on Oct. 6 approved the selection of affordable housing developers for two district properties, one in West Hollywood and one in Woodland Hills, that could potentially provide nearly 600 affordable housing units for LAUSD employees.

“LAUSD is doing this out of need,” LAUSD Board President Scott M. Schmerelson said. “It is not LAUSD’s job or any educational entity to be a housing developer or landlord. But California is in a serious housing crisis, and the city and state are taking too long to respond to it. That is why I am glad that the district is taking this endeavor.”

In West Hollywood, the district selected West Hollywood Community Housing Corporation and Alpha Construction Company to repurpose the one-and-a-half-acre West Hollywood Opportunity Center property at 1049 N. Fairfax Ave.

LAUSD will own the properties, but the developer will be responsible for operation, management and maintenance with no district funding.

The Fairfax site is part of the district’s workforce housing initiative, which aims to create new, affordable housing for LAUSD employees, such as teachers, administrators, school operations and support staff and other district staff such as nurses.

The Fairfax Avenue side is planned to be eight stories tall, and the Hayworth Avenue side would be four stories tall, creating a single Z-shaped structure, according to the LAUSD Board report. The plan includes 207 units, ranging from studio apartments to one-, two- and three-bedroom apartments, a commercial space, community facilities and approximately 250 underground parking spaces.

Tenancy will include LAUSD employees who make between 30-120% of the area’s median income. In L.A. County, this would mean a one-person household making between $34,980 and $139,900 per year.

A 2024 district survey found that approximately 52% of the nearly 12,000 LAUSD employees who responded are interested in affordable housing. The greatest segment of LAUSD employee housing needs fell within the 30-80% average median income bracket.

“The costs of living in Los Angeles are out of control and growing every day,” said LAUSD Board member Kelly Gonez, 6th district. “This is a significant, positive step in a years-long effort to leverage district property to help our employees live in the neighborhoods where they work. I will continue to push for future housing opportunities for our workforce and for our families.”

Construction on the Fairfax site is anticipated to begin in summer 2028 and be completed in summer 2030.

WHCHC plans to finance the project with a $15 million loan from the city of West Hollywood, as well as low-income housing tax credits and public subsidies.

The city of West Hollywood has not committed to providing these funds to WHCHC, nor has it allocated any city funding to the project, a city spokesperson said. Any loan authorizations would require City Council consideration and approval.

“The City of West Hollywood has made no funding commitment to any project submitted to the LAUSD under the 2026 RFP,” Joshua Schare, director of communications for the city of West Hollywood, said. “There is currently no city commitment to fund the project, and no city funds have been allocated for this purpose. Any future request for City funding would require City Council consideration and approval.”

The city previously supported a 2025 bid by several developers, including WHCHC, to redevelop the Fairfax site. Since LAUSD did not select a developer from its 2025 request for proposal, its $15 million commitment to the property is null and void, according to the city. The project referenced by the LAUSD board on Oct. 6 has no city funding commitments.

As part of the district’s workforce housing initiative, LAUSD evaluated nine potential district-owned properties that could serve as potential housing development projects. During its 2026 request for proposals, LAUSD sought proposals for four properties: 1130 South Main St., known as Gompers, 911 Hoover St., known as Hoover, 1049 N. Fairfax Ave., known as Fairfax COS and 5717 N. Rudnick Ave., known as Collins, but did not receive any qualified proposals for the Gompers or Hoover property.

LAUSD received 10 eligible proposals for the Fairfax and Collins sites. A selection panel evaluated the proposals and recommended the West Hollywood Community Housing Corporation and Alpha Construction Company team for the Fairfax property and the Affirmed Housing Group and HA Builders Group, LLC team for the Collins property, in Woodland Hills.

The vote does not constitute final approval of the development projects. Instead, the board’s actions move the proposed projects into the next phase of due diligence, community engagement, design development and negotiation of final terms. LAUSD officials estimate a proposed development agreement and ground lease will return to the board by summer of 2027.