LOS ANGELES — Mayor Tom Bradley joined a consortium of companies Tuesday in announcing the creation of a special real estate investment fund aimed at financing housing projects for low-income individuals and families in Los Angeles and other California cities.
The four California-based companies agreed to donate $1 million each to help build or renovate 377 units in various housing projects, according to officials of the National Equity Fund.
The corporate donors will benefit by receiving substantial tax credits under the 1986 Tax Reform Act.
Bradley said the city's Community Development Department and Community Redevelopment Agency have also agreed to add a combined $5.4 million to the company donations. That pooled money will be used to raise additional dollars for programs to house the poor.
"This project makes good business sense," said Bradley, who also praised the corporate donors at a Los Angeles news conference.
Atlantic Richfield Co., First Interstate Bank of California, Great Western Financial Corp. and Transamerica Occidental Life Insurance Co. are limited partners in the fund, which was created by the nonprofit Local Initiatives Support Corp. to promote neighborhood revitalization projects across the nation.