In early 2023, LA Mayor Karen Bass issued an executive directive (ED1) that declared a state of emergency concerning the homeless crisis, particularly the lack of affordable housing. This directive aims to cut much of the bureaucratic “red tape” that burdens multi-family housing projects in Los Angeles. In response to ED1, the Los Angeles Department of Water and Power (LADWP) has launched an affordable housing task force known as “Project Powerhouse.” This new initiative affects not only affordable housing projects but also standard development projects. Let’s delve deeper into what this means for you.
What is Project Powerhouse?
The newly approved “Project Powerhouse” pilot program by LADWP is a significant initiative that focuses on accelerating the development of 100% Affordable Housing (AH100) projects. LADWP has assembled a dedicated service planning group whose sole responsibility is to work on AH100 projects. However, to have your affordable housing project benefit from this group, your project must be included on the Mayor’s AH100 list of approved projects. Once your project is on the list, it will be forwarded to the task force for priority handling.
Benefits of the AH100 Task Force
There are substantial benefits to having your project handled by LADWP’s AH100 task force. One of the most significant advantages is the expedited timeline for both the encroachment application approval and the service planning designs/commitments.
- Expedited Service Commitments: Typically, the timeline to obtain a service commitment package from LADWP is about a year. However, for AH100 projects, this timeline is significantly reduced to just 2-3 months. All aspects of the LADWP design and review process are fast-tracked to ensure your building can be energized as quickly as possible.
- Faster Encroachment Application Process: The encroachment application process under AH100 is similarly accelerated. Once a full encroachment application is submitted and confirmed as AH100, it is flagged as a priority. Customers can expect to receive a project number within a few days, and encroachment application approvals typically have a turnaround time of 2-4 weeks. In contrast, standard projects are currently experiencing delays, with timelines for encroachment approval stretching to 4-5 months.
- Cost Coverage for Underground Line Extensions: Another important benefit of having an AH100 project with LADWP is the financial support for underground line extensions. LADWP will cover 100% of the costs for public property conduits, vaults, and substructures, although you will still need to pay for any U-permit and SDRF fees related to underground work in the public right of way. Additionally, LADWP will cover your transformer deposit.
Impact on Standard Projects
While LADWP’s Project Powerhouse has been successful in expediting affordable housing projects, it has had an unintended consequence on standard projects. Due to the prioritization of AH100 projects, many standard projects, even those submitted before the initiative took place, are now facing increased delays. If you have a non-AH100 project, it is advisable to submit your plans to LADWP early in your design process to ensure you receive service commitment and energization in a timely manner that aligns with your construction schedule.
Conclusion
LADWP’s affordable housing task force, Project Powerhouse, is a valuable initiative for developers working on projects that qualify for the Mayor’s AH100 list. At Murow Development Consultants, we leverage our extensive experience and relationships with LADWP and other utility providers to ensure that your project gets the attention and resources it needs to be energized on time. Whether your project is AH100 or not, we can guide you through the process and help you navigate any challenges that arise.
For further assistance and navigation, please contact Chris Rad, Director of Dry Utilities, at (714) 900-5500 or [email protected].
