The approval will fund extensive renovations, including upgrades to gas, water, and electrical systems, heating and cooling, plumbing, sewage, structural repairs, and accessibility features
The Santa Monica City Council on Tuesday authorized a $34.8 million Housing Trust Fund loan to the Community Corporation of Santa Monica (CCSM) for the rehabilitation of a 40-unit rent-controlled apartment complex at 2033-2101 Virginia Ave., ensuring long-term affordability and improved living conditions for residents.
The property, built in 1947-48, was acquired by CCSM in 2020 with a $15.2 million city loan to prevent displacement of low-income tenants after the previous owners listed it for sale. The additional $19.6 million approved Tuesday will fund extensive renovations, including upgrades to gas, water, and electrical systems, heating and cooling, plumbing, sewage, structural repairs, and accessibility features. The project also includes $1.8 million for temporary tenant relocation and moving support.
“These are individuals and families who have lived in Santa Monica for generations, many growing up in the same apartment they are now raising their own families in,” Mayor Lana Negrete said. “We are pleased the city is able to facilitate this rehabilitation, in partnership with CCSM, to keep these Santa Monicans housed and ensure they have safe and habitable living conditions.”
Existing tenants will return at their current rent-controlled rates, subject to annual adjustments allowed by city code. Once vacated, units will be restricted to extremely low, very low, and low-income households earning up to 80% of the area median income. The project may also help Santa Monica meet its state-mandated affordable housing obligations, pending approval from the California Department of Housing and Community Development, as 21 of the 40 units were found unfit for habitation during a July 2025 inspection due to issues like severe deterioration and faulty utilities.
The total loan exceeds the city’s Housing Trust Fund per-unit guidelines, requiring council approval. It includes a $1.25 million state matching grant and accounts for cost escalations since 2020 due to construction, relocation, and insurance increases. CCSM secured an additional $850,000 federal grant and a $24,999 city sustainability grant, and anticipates a $200,000 reimbursement from California’s Low-Income Weatherization Program.
Construction is set to begin in October, with tenant relocation planned for December 2025 to January 2026. The project is expected to be completed by March 2027, with tenants returning between December 2026 and January 2027. The loan is repayable after a 55-year term, and 20 project-based vouchers from the Santa Monica Housing Authority will support ongoing affordability.
The council’s decision follows a February closed-session discussion and cost-reduction efforts by CCSM, which cut estimated rehabilitation costs by $5.9 million through competitive bidding. The project is exempt from the California Environmental Quality Act under Section 15301 for existing facilities.
