Homes for Heroes Will Guarantee `Veterans Only` Rentals

Federal housing officials approve the provision community sought; Department of
Veterans Affairs asked to formalize guarantee in Sepulveda VA lease

LOS ANGELES--(Business Wire)--
The developers of Homes for Heroes, a housing development proposed for the
Sepulveda Veterans Administration complex in Los Angeles, announced today that
they will guarantee that only veterans will be permitted to rent apartments.

A Community of Friends (ACOF) and New Directions, Inc. (NDI) plan to convert two
vacant, earthquake-damaged buildings at the Sepulveda Ambulatory Care Center in
North Hills into 147 studio apartments for homeless and disabled veterans.

The nonprofit organizations received a written determination from the U.S.
Department of Housing and Urban Development (HUD) permitting the apartments to
be rented only to veterans. ACOF and NDI immediately asked the U.S. Department
of Veterans Affairs to write the "veterans only" guarantee into their lease.

"Our goal is to provide housing for homeless and disabled veterans on veterans`
land and we`re pleased HUD said we can lease only to veterans," said ACOF Chief
Executive Officer Dora Leong Gallo. "HUD`s approval of the veterans-only
provision is a significant victory for veterans in Los Angeles County, neighbors
of the Sepulveda VA property and similar projects across the United States."

Veterans, neighbors and elected officials called for the "veterans only"
guarantee at Homes for Heroes. ACOF and NDI worked with legislators to secure a
change in California law, and with national organizations and Congressional
representatives to amend the Internal Revenue Service code to allow public
funding to be used for veterans only projects.

"It has been clear to us from the beginning that changes were needed to ensure a
veterans-only provision that would be acceptable to lenders and to fair housing
advocates," NDI Executive Director Toni Reinis. "We are thrilled to tell
concerned members of the community that we heard their requests and we have
worked hard to guarantee that the housing will be strictly for veterans only."

In Los Angeles, there are between 18,000 and 21,000 homeless and disabled
veterans, with nearly 2,700 of them in the San Fernando Valley, according to a
2007 report by the National Alliance to End Homelessness. An estimated
150,000-200,000 veterans are expected to return to California from service in
Iraq and Afghanistan.

"The need for permanent supportive housing will continue to grow, and there is
currently no plan in Los Angeles and no plan in the State of California to
accommodate disabled and homeless military veterans," Reinis said. "It falls to
the nonprofit community to take action, because the mission of the VA is to
provide medical care, not to provide housing."

In addition to providing much-needed housing, Homes for Heroes will enhance
independent living for veterans by offering: counseling and mental health
services; access to educational opportunities; vocational training and job
placement; and assistance in managing personal finances.

The project is slated for what are known as Buildings 4 and 5 on the Sepulveda
Ambulatory Care Center complex. The structures sustained damage in the
Northridge earthquake and must be seismically retrofitted along with the removal
of lead paint and asbestos for the buildings to become habitable.

Under the terms of the ACOF/NDI lease with the Department of Veterans Affairs,
the buildings cannot be sold and will return to the federal agency when the
lease expires.

About A Community of Friends

A Community of Friends (ACOF) was founded in 1988 with the goal of developing
housing for individuals and families with special needs. ACOF has completed over
1,300 units in 35 properties, primarily throughout Los Angeles County, and has
several properties in development. For more information, visit www.acof.org.

About New Directions, Inc.

Since 1992, New Directions has provided comprehensive services for veterans,
including substance abuse and mental health treatment, transitional housing,
counseling and peer support, remedial education, job training and placement, and
legal and financial assistance. For more information, visit: www.NDVets.org.

for A Community of Friends
Eric Moses
office: 213-438-1755
cell: 310-770-6181
emoses@consensusp.com

Copyright Business Wire 2009