Olive Tree Commons, Another Step Toward Affordable-for-Youth Housing

Covenant House is building affordable-for-youth housing, with rental rates and supportive services we hope will spur a model of affordable housing that will advance our goal to end youth homelessness as we know it today.  

Olive Tree Commons, our second such housing opportunity, opened in November 2024 and provides 16 affordable housing units for young people exiting homelessness. It follows Linden Commons, which opened in 2023. Both Olive Tree and Linden are located in Los Angeles, California, where sky-high rental rates keep thousands of young adults from safe, sustainable housing every year.  

Our model follows the 30% rule, where rents are set at 30% of a renter's income, even minimum-wage income. This approach offers young adults a place they can afford, where they can begin their lives as healthy, confident adults, without the fear of homelessness while they build a career and work toward their next steps in life. This will ring familiar to anyone who has had the support of family and social networks when they first began their adult journeys.  

While the 30% rule has long been a rental standard, it has become harder and harder to achieve. Across the United States, more people are rent-burdened than ever before, with half spending more than 30% of their income on rent and utilities and millions spending more than half, according to Harvard’s Joint Center for Housing Studies. It is especially difficult for young people starting out with big dreams and low pay. 

Our common-sense policy allows youth to assume responsibility for their own lives without spending most of their income on rent. Average rents in most places in the U.S. exceed 100% of full-time minimum-wage incomes. Even low-wage jobs that pay a few dollars above minimum cannot sustainably cover rent. We are committed to making affordable, dignified housing available to young adults who have experienced the hardships of homelessness and instability. 

The Olive Tree Commons property was purchased by our Covenant House California affiliate in 2019. Since then, we’ve renovated the building entirely through private funds. We now offer affordable-for-youth housing along with light-touch services, such as case management, as needed. The property is self-sustaining, as the residents’ rent, though modest, covers building maintenance and resident services. We’ve also covered the first year of case management salaries.  

 With Olive Tree Commons and Linden Commons, we’re thrilled to introduce this replicable model of affordable housing for young people who contribute so much to the vibrant diversity of Los Angeles. 

We will evaluate the success of our programs based on the following goals:  

1. Maintain full occupancy of the building. 

2. Ensure all residents consistently pay their reduced rent on time. 

3. Prevent residents from returning to homelessness or unstable living conditions. 

4. Support youth who leave the Commons to pursue larger and better opportunities on their own. 

Ultimately, we will consider the programs successful if they inspire other agencies or organizations to adopt a similar model, creating limitless long-term benefits for young people overcoming homelessness and stepping out into adulthood. With 6,000 youth experiencing homelessness in L.A., and a lack of affordable housing in cities across the country, it's our responsibility to provide them with a safe space to cultivate their talents and grow into their great promise — which benefits us all. 

When you support Covenant House, you help make affordable-for-youth housing available to more young people eager to begin their adult lives free from the worry of homelessness and instability.