The Los Angeles City Council has voted to enter into an exclusive negotiating agreement with developer SoLa Impact to build a modular housing manufacturing facility on a city-owned site in South Los Angeles, a move that could significantly expand the local supply chain for affordable housing.
The agreement covers an initial one-month period with an optional one-year extension for the property at 10900-10931 S. Clovis Avenue, just west of Central Avenue. The Honeycomb campus is intended to replicate Model/Z's existing manufacturing facility, which began operating in January 2024 and currently employs more than 300 full-time workers.
Background
The City of Los Angeles purchased the 9-acre site at 10900-10931 South Clovis Avenue in 1993 after 50 years of use as a maintenance, storage, and sign-painting yard by the California Department of Transportation. The property, which underwent soil remediation over a decade ago, was the subject of a request for proposals issued in March 2025. SoLa Impact submitted the winning bid.
SoLa Impact, founded by Martin Muoto in 2012, owns and manages more than 1,500 apartments in South Los Angeles, with another 1,500 affordable and workforce housing units in the pipeline. Recognized as California's largest private developer of workforce and affordable housing, the firm has invested over $1.5 billion in Southern California using private capital and Opportunity Zone funds.
Details
SoLa's proposal, dubbed "The Honeycomb," calls for redeveloping the site with a 175,000-square-foot manufacturing facility for modular housing units built by its subsidiary Model/Z. Model/Z operates a modular construction factory in the nearby Watts neighborhood of South Los Angeles, producing 2.5 standardized and proprietary modular units per day designed specifically for the U.S. affordable housing market.
Model/Z uses AI and volumetric modular manufacturing to deliver affordable housing at lower cost, reduced timelines, and minimal waste. The firm is led by former SpaceX engineers and automotive executives. The modular approach is expected to produce 35% less material waste and embodied carbon emissions compared with traditional construction. According to SoLa CEO Martin Muoto, modular units allow a process that would otherwise take up to 10 months to be completed in 10 days.
The proposed Honeycomb facility has secured political backing at the council level. City Council President Marqueece Harris-Dawson submitted a letter urging approval of the agreement.
SoLa's modular pipeline is already attracting institutional capital. The firm's $63 million 43rd and Vermont project, located in an Opportunity Zone in the Vermont Square neighborhood, will create 188 new units of affordable housing targeting families and individuals who have experienced homelessness. The $34.8 million construction loan for that project was provided by Acore Capital, with financing arranged by Walker & Dunlop broker Chris Montes. An additional $12 million equity investment was committed by the AIC CEI-Boulos Opportunity Fund.
Model/Z employs over 150 factory workers recruited primarily from the Watts neighborhood, where employees earn above the living wage in Los Angeles. The flagship Watts facility has also created training and upskilling opportunities through the Model/Z Vocational School.
Outlook
SoLa Impact has stated a goal of scaling to 10,000 units per year at $200,000 per door - all in, including land, construction, financing, permitting, and design costs - contingent on cooperation from city and state government. The agreement's optional one-year extension means formal lease and development terms for the Clovis Avenue site remain subject to ongoing negotiation. Separately, SoLa Impact and Model/Z have partnered with LOGOS Faith Development to deploy over 300 modular units on church-owned land across Los Angeles and San Diego to address housing displacement caused by recent wildfires.
