1. United States
2. Calif.
3. Letter

I am writing to express my strong support for the groundbreaking mixed-use development in Baldwin Hills that will combine 800 residential units with a Costco warehouse store. This project represents exactly the kind of creative, scalable solution we need to address California's housing crisis. The development will deliver 184 units specifically for low-income households in a neighborhood where the poverty rate is 25% higher than the national average. What makes this project particularly promising is its innovative financing model. Costco will pay rent for the 185,000 square foot retail space, and this rental income will reduce the developer's reliance on government subsidies for the affordable housing units. This approach could fundamentally change how we finance affordable housing construction at scale. Developer Ben Shaoul has stated that if this model succeeds, he aims to build thousands of apartments annually rather than hundreds. This is the kind of ambitious thinking we need. The project will create thousands of construction jobs and 400 permanent retail positions when the Costco opens, providing significant economic benefits to the community. This development is the first to receive approval under Assembly Bill 2011, the Affordable Housing and High Road Jobs Act, which expedites projects meeting affordability and labor standards. Construction begins in early 2025 with completion expected in 2027 at a total cost of $425 million. I urge you to champion this project and similar innovative approaches that combine private sector revenue streams with affordable housing development. We cannot build our way out of the housing crisis using only traditional models. This project demonstrates that creative partnerships between retail and residential development can deliver housing at scale while reducing the burden on public subsidies. Please advocate for policies that encourage and replicate this model across California.