South L.A. Residents Gain 37 New Affordable Homes as Eleos and Health Net Break Ground at 5637 S. Broadway

Eleos and Health Net (CNC) broke ground on a 100% affordable, 37-unit housing development at 5637 S. Broadway in South Los Angeles on March 4, 2026.

Rhea-AI Summary

Eleos and Health Net (CNC) broke ground on a 100% affordable, 37-unit housing development at 5637 S. Broadway in South Los Angeles on March 4, 2026. Health Net provided a $550,000 grant to close the funding gap; construction began with completion expected in summer or fall 2027.

The privately financed project received entitlements and permits in nine months under the City's streamlined approval pathway and will serve low-income, income-restricted households, including those using vouchers or exiting homelessness.

Positive

• 37 income-restricted affordable homes
• Health Net $550,000 grant closed funding gap
• Permits and entitlements secured in 9 months
• Privately financed delivery without public subsidy

Negative

• Construction completion anticipated in summer/fall 2027 — delivery timeline extends over a year

Argus Mar 5 session

-3.82% close to close Open Argus

Details

News Market Reaction – CNC

On Mar 5, the first trading day after this news, CNC closed 3.82% below the previous close.

Data tracked by StockTitan Argus for the Mar 5 session.

Market Context

This announcement details a 37-unit 100% affordable housing project in South Los Angeles, supported ...

Analysis

This announcement details a 37-unit 100% affordable housing project in South Los Angeles, supported by a $550K Health Net grant and framed within a broader $93 million housing commitment since 2020. It reinforces CNC’s focus on social determinants of health and housing stability. Historically, similar community-oriented news produced mixed short-term price responses, so investors may watch how it complements recent guidance, large-scale prior investments, and overall execution rather than expecting an immediate market impact.

Key Figures

New affordable homes: 37 units Health Net investment: $550K Affordability share: 100% affordable +4 more

New affordable homes

37 units

South Los Angeles development at 5637 S. Broadway

Health Net investment

$550K

Grant to close funding gap for South Broadway project

Affordability share

100% affordable

All 37 homes income-restricted for low-income households

Approval timeline

9 months

Entitlements and permits under Executive Directive 1

Projected completion

Summer/Fall 2027

Expected construction completion for South Broadway community

Eleos housing pipeline

1,300 units

Completed, under construction, or active pipeline across Los Angeles

Housing commitment

$93 million

Health Net housing and homelessness initiatives since 2020

Historical Context

5 past events · Latest: Mar 03

5 events

1. Mar 03

   Housing grants announcement

   24h Move

   -1.8%

   Large $31.25M grants to fund about 900 new affordable housing units.

2. Mar 03

   Community grants program

   24h Move

   -1.8%

   Superior HealthPlan opens applications for $100,000 in Texas community grants.

3. Feb 26

   School belonging initiative

   24h Move

   +0.6%

   Support for No One Eats Alone Day in 151 schools for 64,000 students.

4. Feb 24

   Housing and care investments

   24h Move

   -2.2%

   Announcement of more than $284M invested in community programs 2020–2025.

5. Feb 17

   Community report release

   24h Move

   +1.6%

   Superior HealthPlan details 2025 community investments and major health center project.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

medi-cal

1 terms

medi-cal medical

""said Dorothy Seleski, Medi-Cal President at Health Net.""

Medi‑Cal is California’s government-run health insurance program that pays for medical care for low-income individuals and families. It matters to investors because it acts like a very large customer with set payment rules and wide reach: changes in Medi‑Cal enrollment, reimbursement rates, or coverage rules can directly affect revenues and cash flow for hospitals, clinics, drugmakers and insurers that rely on its payments, much like a major client changing contract terms.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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New development adds long-term housing stability for low-income households in South Los Angeles

LOS ANGELES, March 4, 2026 /PRNewswire/ -- More South Los Angeles residents will soon have a stable place to call home. Today, Eleos and Health Net marked the start of construction on a new 37-unit affordable housing community at 5637 S. Broadway in South Los Angeles.

The project was made possible in part by a $550K investment from Health Net, which helped close the remaining funding gap and advance construction of the 100% affordable development. This is a 100% affordable development — all 37 homes are income-restricted and intended for households with low incomes, rather than a mix of market-rate and affordable units. Community leaders and partners gathered at the site to recognize what this project will deliver for the neighborhood: more housing stability, fewer families priced out of the community, and a clearer path to long-term well-being.

"This project reflects what we're working toward at Eleos: delivering high-quality affordable housing faster, more efficiently, and through meaningful partnerships," said David Aghaei, co-founder and principal of Eleos. "By combining private financing, streamlined policy and philanthropic support, we're showing it's possible to move projects forward without delay and without compromising on quality."

"Congratulations to Eleos Ventures on breaking ground on 37-new homes in our South Los Angeles community," said Los Angeles County Supervisor Holly J. Mitchell. "Eleos and Health Net are showing what's possible with public and private partnerships, together putting residents first. These 37 new homes will strengthen this corridor, improve health outcomes, and help families build a more secure future right here in South L.A."

Faster approvals — without waiting years to start building

The South Broadway development received entitlements and permits in nine months under Mayor Karen Bass' Executive Directive 1; the City's streamlined approval pathway designed to accelerate housing. Unlike many affordable housing developments, the project is privately financed and delivered without public subsidy, applying discipline, speed and cost efficiency to housing residents with the greatest need.

"Too many families are priced out of safe, stable housing — even when they're working full time and doing everything right," said Daniel Dayan, co-founder and principal of Eleos. "This development reflects our commitment to closing that gap and creating homes that strengthen neighborhoods and support long-term stability."

Health Net partnership helps close the gap

The project was supported in part by Health Net, whose grant helped close the remaining funding gap and expand access for residents with the greatest need. Since 2020, Health Net has committed $93 million to housing and homelessness initiatives across California, advancing long‑term stability and improved health outcomes for communities most in need.

"Safe, stable housing changes everything — it improves health, strengthens job stability and protects childhoods," said Dorothy Seleski, Medi-Cal President at Health Net. "We're proud to partner with Eleos to bring affordable homes to South Los Angeles, because when families have a secure place to live, they can focus on getting healthier, working to provide for their families and staying rooted in their neighborhood. Our grant helped close the final funding gap so this community can move from uncertainty to stability, and we'll continue investing in practical solutions that give residents real opportunity for long-term well-being."

Eleos will serve as both the developer and operator of the South Broadway community. Across Los Angeles, Eleos has more than 1,300 housing units completed, under construction, or in its active pipeline. Eleos also works with nonprofit service providers and public agencies to support successful lease-up and long-term stability. Many Eleos properties serve residents who have experienced homelessness, rely on housing vouchers, or fall within the "missing middle" income range that often lacks access to traditional subsidies.

What's next

Construction is now underway, with completion anticipated in summer or fall of 2027.

About Health Net
Founded in California more than 45 years ago, Health Net, LLC ("Health Net"), a company of Centene Corporation, believes that every person deserves a safety net for their health, regardless of age, income, employment status or current state of health. Today, we provide health plans for individuals, families, businesses of every size and people who qualify for Medi-Cal or Medicare. With more than 117,000 of our network providers, Health Net serves more than three million members across the state. We also offer access to substance abuse programs, behavioral health services and managed healthcare products related to prescription drugs. We make these health plans and services available through Health Net and its subsidiaries: Health Net of California, Inc., Health Net Life Insurance Company and Health Net Community Solutions, Inc. These entities are wholly owned subsidiaries of Centene Corporation (NYSE: CNC), a leading healthcare enterprise committed to transforming the health of the communities we serve, one person at a time. Health Net and Centene Corporation employ more than 5,700 people in California who work at one of five regional Talent Hub offices. For more information, visit www.HealthNet.com.

About Eleos
Eleos was founded with one goal in mind –– to change the space that people live, work and play in for the better. And all of this was fueled by the housing crisis in Los Angeles, which brought to bear the dire need for affordable solutions for our fellow residents who are seemingly forgotten by the current market-rate housing mix. Eleos regularly works with institutions to apply its expertise and resources to a new model of privately funded affordable housing solutions that drive lasting, permanent change. For additional information about Eleos, visit https://www.eleos.la/.

View original content to download multimedia:https://www.prnewswire.com/news-releases/south-la-residents-gain-37-new-affordable-homes-as-eleos-and-health-net-break-ground-at-5637-s-broadway-302704737.html

SOURCE Health Net

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Eleos and Health Net announce about 5637 S. Broadway (CNC) on March 5, 2026?

They announced groundbreaking for a 100% affordable, 37-unit development at 5637 S. Broadway. According to Eleos and Health Net, a $550,000 grant closed the remaining funding gap and construction has begun with completion expected in 2027.

How many affordable units will the 5637 S. Broadway project (CNC) deliver and who qualifies?

The project will deliver 37 income-restricted homes for low-income households. According to Eleos, units target households with greatest need, including voucher holders and people exiting homelessness or in the missing-middle income range.

What financing did Health Net provide for the 5637 S. Broadway project (CNC)?

Health Net provided a $550,000 grant to close the project's final funding gap. According to Health Net, this grant enabled construction to move forward on the 100% affordable development.

How quickly did the 5637 S. Broadway project (CNC) receive approvals and permits?

The development secured entitlements and permits in nine months via the City's streamlined approval pathway. According to Eleos, the faster approvals accelerated construction start and reduced typical pre‑development delays.

When is construction expected to finish for the 5637 S. Broadway affordable homes (CNC)?

Construction is underway with completion anticipated in summer or fall 2027. According to Eleos, the timeline reflects current project scheduling and aims to deliver homes within about fifteen to eighteen months.

Will the 5637 S. Broadway project (CNC) use public subsidies or private financing?

The project is privately financed and delivered without public subsidy. According to Eleos, private financing combined with philanthropic support and streamlined policy enabled faster, cost‑efficient delivery.