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San Diego Seeking Buyer to Turn Downtown Building into 100% Affordable Rental Homes

A glass building located at the corner of a street surrounded by people walking on the sidewalk and parked cars

In an effort to create much-needed affordable homes, the City of San Diego is looking for an individual or organization to purchase, redevelop and operate a City-owned building in Downtown as 100% affordable multi-family rental housing.

Today, the City issued a Request for Proposals (RFP) for the 26,500-square-foot, three-story building located at 1401 Imperial Ave. The property, which sits in East Village across from Tailgate Park, currently serves as the City’s Homelessness Response Center (HRC). The San Diego Housing Commission (SDHC) operates the HRC, along with City, People Assisting the Homeless (PATH), the Regional Task Force on the Homeless (RTFH) and other homelessness service providers. The SDHC will continue to operate it during the RFP and negotiation process.

“Housing ends homelessness, and the best resource we can offer to people experiencing homelessness is a home they can afford,” said Mayor Todd Gloria. “While we’ll continue to offer the HRC’s valuable services to unsheltered San Diegans at other locations, the best use of this City-owned property is to provide the affordable housing residents need to get and stay housed permanently.”

The project requires that 100% of rental homes on the property go to low or moderate-income people and families. This affordable rent will be deed-restricted and must remain in place for a minimum of 55 years. Proposals may include commercial businesses on the ground floor.

“I want to thank Mayor Gloria for his swift action on my request to turn this building into 100% affordable housing,” said Councilmember Stephen Whitburn, whose district includes downtown. “Converting a homelessness center into a housing site is emblematic of the advances we are making on our city’s biggest challenges. These affordable homes will be a welcome addition to East Village and will support San Diegans who have struggled with the cost of housing.”

When selecting a buyer, the City will consider the proposer’s qualifications and direct experience in constructing and operating affordable housing developments, their finances and the project’s design, schedule, financing and specific affordability levels. The RFP can be accessed through the City’s website.

“With our sustained housing crisis, creating additional affordable housing units on underutilized, City-owned property is our highest priority,” said Economic Development Director Christina Bibler. “We are hopeful that we receive a number of interested development responses to quickly see this vision turn into reality.”

Proposals must be submitted to the City by May 1, 2024, at 5 p.m. The City hopes the purchase and sale of the property will move expeditiously, especially with the 100% affordable housing quick review incentives now available through the development review process.