Affordable Housing Project Gets Initial Approval; City Council to Make Final Decision
First major milestone reached for $55 million fund for affordable housing in San Diego

SAN DIEGO, CA - The City of San Diego Redevelopment Agency (comprised of the City's Community and Economic Development Department, Centre City Development Corporation and The Southeastern Economic Development Corporation) together with the San Diego Housing Commission, today announced the City's committee overseeing the $55 million program to develop new affordable housing has reviewed and will recommend approval of the first project that applied for the funding. The next step is for the San Diego City Council, sitting as the Redevelopment Agency board, to vote on the project sometime in July.

The City announced earlier this year that the funding was available for qualified developers and development teams to submit proposals for new projects that included an affordable housing component. The release of the NOFA was the first step in the implementation plan for San Diego's comprehensive affordable housing strategy. Management of the funding program resides in the City's Community and Economic Development Department. The first project reviewed and approved by the committee so far is:

• St. Stephen's Senior Apartments
  • Developers: St. Stephen's Church of God in Christ and the Related Companies of California
  • Location: Southeast, 55th and Imperial Avenue
  • Description: 50 apartments, new construction, senior housing
  • Affordability: 50 very low income
  • Funding Request: $2,034,000

Three additional projects are in the pipeline and are being reviewed by staff of the collaborating agencies. Additionally, five other projects, most geared toward small families and located in the Downtown area, are likely to be submitted in the near future. Projects in the pipeline include:

• Barrio Logan Apartments
  • Developer: Urban Innovations
  • Location: Barrio Logan, Logan Avenue and Evans Street
  • Description: 45 apartments, new construction, small family
  • Affordability: five very low income, 40 low income
  • Funding Request: 6,200,000

• Ken-Tal Senior Housing Project
  • Developer: Southern California Housing Development
  • Location: City Heights, 52nd and El Cajon Boulevard
  • Description: 91 apartments, new construction, senior housing
  • Affordability: 90 very low income, one market rate
  • Funding Request: $3,453,000

• Park Crest Senior Apartments
  • Developer: Southern California Housing Development
  • Location: City Heights, 52nd and Orange Avenue
  • Description: 71 apartments, acquisition/rehab, senior housing
  • Affordability: 28 very low income, 41 low income, two market rate
  • Funding Request: $3,774,000

"San Diego is facing an affordable housing crisis and at the Council's direction, the City Manager developed the Comprehensive Affordable Housing Strategy through this unprecedented collaboration," said Hank Cunningham, director of the City of San Diego's Community and Economic Development Department and the assistant executive director of the City of San Diego Redevelopment Agency. "This is just one of many efforts the City is making to address this important issue, as we most recently saw with the adoption of the inclusionary housing ordinance earlier this month."

Since the approval of the Collaborative's strategy, which earmarked Redevelopment tax increment to create up to $55 million in affordable housing financing, the Collaborative has focused on goals for new units to increase the housing inventory, designed the NOFA to solicit proposals from qualified developers, and established a methodology to review project proposals for the funding approval process. The Collaborative has presented suggested priorities to community groups to engage their feedback and garner support.

"The goal is to increase the City's affordable housing inventory for very low-, and low-income households, to help people with a moderate-income status achieve homeownership and, on a case-by-case basis, acquire and rehabilitate existing properties," said Carolyn Smith, president of Southeastern Economic Development Corporation. "We are focused on creating new housing for the working families of San Diego and are pleased to have so many of the much-needed flagship projects located in our redevelopment areas."

Proposals for projects may be for residential or mixed-use developments; housing that is all low-income or is mixed-income; multi- or single-family dwelling units or a combination; and rental or for-sale units. Financing from the NOFA may be used when adequate funding from traditional sources is unavailable for the proposed project. The number of affordable units and the levels of affordability provided are the primary factors in determining the level of financial assistance available to qualifying projects.

For each proposed project, a minimum of 15 percent of the housing units must be affordable and have affordability restrictions of no less than 45 years for for-sale and 55 years for rental units. Eighty-five percent of the funding is designated for projects providing housing for households that earn at or below 80 percent of the area median income. Families are the priority population to be served, however, projects for other populations are also welcome.

For more information on these and other affordable housing and redevelopment projects planned and underway, contact the Community and Economic Development Department at (619) 533-4233 or email AffordableHousingNOFA@sandiego.gov. All related documents and other resource information are also available on the City's web site at www.sandiego.gov (type "affordable housing" in the search field).

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The City of San Diego Redevelopment Agency eliminates blight from designated areas, as well as achieves the goals of development, reconstruction and rehabilitation of residential, commercial, industrial, and retail districts. Redevelopment is one of the most effective ways to breathe new life into deteriorated areas plagued by social, physical, environmental or economic conditions that act as a barrier to new investment by private enterprise. The City of San Diego Redevelopment Agency consists of three divisions: the City Redevelopment Division (which provides overall agency management and is housed in the City of San Diego Community and Economic Development Department), the Centre City Development Corporation and the Southeastern Economic Development Corporation.