Model Z Modular, LLC, through its affiliate SoLa Impact, is a business and Los Angeles’ largest Section 8 housing provider and privately funded affordable housing developer. The company sought to address the severe affordable housing crisis in South Los Angeles, particularly in the Watts neighborhood, where nearly 3% of households earned less than $15,000 annually. To tackle these challenges, the company established a state-of-the-art 150,000 sq. ft. modular housing manufacturing facility focused on producing affordable housing units for underserved areas in California.

To realize this vision, Model Z Modular, LLC requested $19 million in NMTC allocation to finance the build-out and equipping of the factory. The project sought $13 million from Prestamos CDFI, LLC, paired with $6 million from HEDC New Markets, Inc. (“Grow America”). This financing was crucial to support the project’s goals of producing over 1,500 affordable housing units within its first two years and scaling up to nearly 10,000 units annually by 2029. The allocation was needed not only for construction and equipment but also to support the company’s broader mission of addressing the housing affordability crisis across California and the United States.

The project made a significant impact on both the local community and the broader affordable housing market. It created 312 permanent full-time equivalent (FTE) jobs, with 294 (94%) considered quality jobs at a weighted average wage of $31.30, 65% above Los Angeles’ per capita income and 31% higher than the living wage.

In addition to housing production, the project included an on-the-job training program designed to equip employees with the skills needed for career advancement within the company and potential collaborations with partners like Kedren Health. The facility served as a template for future modular housing hubs in various U.S. cities, beginning with the initial units deployed in South Los Angeles’ low-income communities.