Pensions to invest in affordable housing

Three of the largest public pension funds in Los Angeles County have announced that they will invest a combined $65 million in the construction of housing for such middle-income earners as teachers, firefighters and police officers.

The three funds -- the Los Angeles City Employees' Retirement System, the Los Angeles Department of Fire and Police Pensions and the Los Angeles County Employees Retirement Assn. -- will supply nearly half of the $150 million being raised by an equity management firm to build an anticipated 2,250 homes, townhouses, condominiums and rental units in the city of Los Angeles and surrounding areas.

The dwellings will target families who otherwise might be priced out of the region's expensive housing and rental markets. The housing will begin opening in about 2 1/2 years. Sites have not been finalized.

The new housing fund is being managed by the Phoenix Realty Group, a national real estate fund manager that has financed similar housing in northeast Los Angeles.