SHERMAN OAKS—The non-profit organization Mercy Housing has submitted an application to the city of Los Angeles Planning Department for construction of a senior affordable housing in Sherman Oaks.

The plan entails a four-story building with 55 apartments reserved for low income seniors. The housing development would replace a 1940s-era triplex at 14534 Burbank Blvd. and requires demolishing three existing residential units on the site, Urbanize LA reported. The proposal asks for increases in allowable floor area and height and decreases in required open space and side yards.

A 4.5 million grant for the U.S. Department of Treasury’s Community Development Financial Institutions Fund was awarded to Mercy Loan Fund on Friday.

“This substantial grant will allow us the opportunity to broaden our impact as we work to combat the lack of affordable housing throughout the nation,” said Vice President Brian Sample of MLF. Sample also added that the grant would be leveraged into a greater amount from $40 to $60 million.

In the latest report from National Low Income Housing Coalition, it was revealed that the U.S has a shortage of 7.4 million affordable and available rental homes to low income renters who have earnings at or below poverty guideline. The report also showed that nationwide, only 35 affordable and available rental homes exist for every 100 extremely low-income renters and call for re-balancing federal housing expenditures to serve households with the most critical housing needs.