Dilapidated Panorama City Motel Being Converted to Permanent Homes for the Unhoused 

A motel in Panorama City previously deemed obsolete is being converted into permanent supportive housing by Los Angeles Family Housing (LAFH). 

The 48-unit Panorama Motel is being turned into 90 permanent homes for unhoused individuals.

The housing, renamed The Pano, is part of the statewide Project Homekey Program and is the first conversion of its kind in the city of LA. The program converts commercial and other existing buildings, such as motels, into permanent housing. 

A groundbreaking ceremony was held on Monday, Aug. 5, to celebrate the project aimed at reducing homelessness.

Construction began in April and is expected to last 18 months. The Pano is predicted to open its doors in spring 2026.

Stephanie Klasky-Gamer, LAFH president and CEO, explained that the program came about during the height of the COVID-19 pandemic when California received relief funds and Gov. Gavin Newsom set aside $650 million to launch the initiative. The city of LA purchased the motel, and LAFH later won the bid to assume ownership of the site and revamp it.

The approximately $60 million project includes the old two-story building that was once the Panorama Motel, which will be entirely renovated, and a new three-story building. In addition to more homes, residents will have access to on-site supportive services, including mental and physical health services, employment programs, socialization and education.

Dignitaries present for the ceremony spoke of the urgent need to end homelessness.

“We have a housing and a homeless crisis in Los Angeles, and so we need to build 100 more [projects like] The Pano in order to support our neighbors, both our housed and unhoused,” Klasky-Gamer said. “The only way we end homelessness across Los Angeles is when we provide access to and the development of more housing.”

The 2024 Greater LA Homeless Count showed the number of unhoused individuals slightly decreased countywide for the first time in six years, however the latest figure of 75,312 homeless continues to be astounding. Unsheltered homelessness across the city dropped by approximately 10.7% and the number of unhoused people who were sheltered increased by 17.7%.

Kevin Keller, the city of LA’s deputy mayor of housing, said the number of people who have moved into permanent housing is at an all-time high, and housing projects like this one can help save lives. He added that the project is benefitting from Mayor Karen Bass’ Executive Directive 1 (ED 1), which expedites the processing of shelters and affordable housing projects in LA.

“We’re cutting the red tape to save more time and money to move this project forward quickly,” Keller said. “Projects like The Pano demonstrate the importance of locking arms on all levels of government and with the philanthropic sector, who will provide critical gap funding for their project. Working together, we can get more people off the street and into stable housing.”

The Pano had several sources of funding, including $24 million from the multifamily housing program at the Department of Housing and Community Development (HCD), a $26 million construction loan from City National Bank and a $3 million community funding grant from Congressman Tony Cárdenas.

Elda Mendez-Lemus – executive director of LAFH Builds, an affiliate company that oversees real estate development activity and property operations – said that projects like The Pano are what’s going to end the homelessness crisis in LA, and more are needed within the San Fernando Valley. She thanked the numerous sources of funding and ED 1 for making the project possible.

“The financing of this project is innovative. We don’t have the tax credits, which is typically how you build affordable housing,” Mendez-Lemus explained. “The fact that we took the acquisition of Project Homekey dollars to put in place a [new] 50-unit, three-story structure is huge. It was 48 units, and we’re giving back 90 units to the community.”

However, there is a long way to go to address the homeless crisis in California. Jennifer Seeger, deputy director for the HCD, said they have a statewide housing plan to build 2.5 million units by 2030 – 1 million of which must meet the needs of those experiencing homelessness.

The high cost of rent continues to be a burden on many Angelenos. Although nonprofit news outlet Crosstown LA recently released a report that said rent in LA dropped 3% over the last year, it’s still significantly higher than the median cost of rent nationwide. The median rent in LA for a one-bedroom apartment is $1,872 a month and $2,388 per month for a two-bedroom apartment. Nationwide, a one-bedroom unit is $1,233 a month and a two-bedroom unit is $1,389.

Additionally, Project Homekey has had its share of problems. Earlier this year, state Attorney General Rob Bonta filed a lawsuit against contractor Shangri-La Industries, alleging fraud and breached state contracts. The contractor oversaw seven properties in cities across California through the program, including San Bernardino, Redlands, Salinas and King City. Bonta demanded they return more than $100 million in funds and that the properties be placed in receivership.

Despite the issues, Klasky-Gamer is confident that more housing built through Project Homekey will reduce the number of unsheltered homeless in LA. LAFH has more motels and inns that will be renovated and turned into permanent supportive housing, including one in Reseda and another in Sylmar.

“There’s a lot of work to be done, but it takes one building at a time,” Klasky-Gamer said. “Fortunately, LA Family Housing has about six properties under construction or in different stages of development right now. We will be bringing another 700 units of housing online in the next couple of years, The Pano being one of them.”