$55 Million Funding Available for Affordable Housing Development
City Seeks Developer Proposals; New Housing Units Could Be Available As Early As 2005

SAN DIEGO, CA - The City of San Diego Redevelopment Agency this week released a Notice of Funding Availability (NOFA) for a $55 million program to develop new affordable housing units within the City of San Diego. The City is seeking qualified developers and development teams to submit proposals for new projects that include an affordable housing component. The release of the NOFA is the first step in the implementation plan for San Diego's comprehensive affordable housing strategy. Completed units could be available as early as 2005.

San Diego is facing an affordable housing crisis and at the Council's direction, the City Manager developed the Comprehensive Affordable Housing Strategy through an unprecedented collaboration of the Redevelopment Agency (comprised of the Centre City Development Corporation, the Redevelopment Division of the Community and Economic Development Department and the Southeastern Economic Development Corporation) and the San Diego Housing Commission. To address the issue of the lack of affordable housing, the Collaborative set a goal to create as many as 2,185 new affordable housing units Citywide over a three to five year period, with an emphasis on housing for working families.

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.

"With this unprecedented decision, the City Council is tackling the issue of affordable housing head-on. This significant funding will provide developers with incentives to meet the City's goal of creating thousands of needed housing units," said P. Lamont Ewell, San Diego's assistant city manager.

The goal is to increase the City's affordable housing inventory for very low-, and low-income households, to assist people with moderate-income levels achieve homeownership and, on a case-by-case basis, to acquire and rehabilitate existing properties. Proposals 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.

"The Redevelopment Agency provides the perfect tools to support development efforts with incentives to increase the number and quality of housing units for all income levels. By offering incentives and supporting developers of very low- to moderate- income housing, we are helping the City fulfill its commitment to provide more housing that San Diegans can afford," said Hank Cunningham, who serves as both the assistant executive director of the City of San Diego Redevelopment Agency and director of the Community and Economic Development Department.

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.

A pre-submittal conference for potential developer/development team applicants will be held on Thursday, February 20, 2003 from 8 to 10 a.m. in the Silver Room at the San Diego Concourse at 202 C St., San Diego, CA 92101. Interested parties are strongly encouraged to attend the conference for a discussion of program objectives and procedures, including a question and answer session with Collaborative partners. The City of San Diego will begin accepting completed applications on March 3, 2003. Proposals for the NOFA will be accepted until funds are expended.

For more information and a copy of the NOFA, contact the City of San Diego Redevelopment Agency at (619) 533-5212 or email AffordableHousingNOFA@sandiego.gov. All related documents and other resource information are also available on the City's web site.

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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 (housed in the City of San Diego Community and Economic Development Department), the Centre City Development Corporation and the Southeastern Economic Development Corporation.