AFFORDABLE HOUSING
The San Diego Housing Commission (SDHC) creates and preserves affordable rental housing in the City of San Diego as a lender, issuer of Multifamily Housing Revenue Bonds, developer, owner of affordable rental housing units, and administrator of City land use programs, such as Inclusionary Housing, and by monitoring properties to ensure compliance with affordability restrictions. SDHC’s involvement requires rents at affordable housing properties to remain affordable for decades—typically 55 years—for households at specified levels of low income.
Families with low or moderate income also have opportunities to become homeowners through SDHC’s first-time homebuyer programs.
I feel so grateful that I had the opportunity to have something like this.”
A Home This Senior ‘Can be Proud of’ After Homelessness
Sitting in his vacant apartment at Levant Senior Cottages about a week before his move-in, Earl envisioned the walls brimming with life at the first permanent home he’s had after experiencing episodes of homelessness in the past 15 years.
“I can’t believe the quality of it,” Earl said. “I have a place here that I can be proud of—a place I can put up my children’s pictures, decorate. There’s actually room to put a TV in, which I haven’t had in some time!”
Two years past his successful battle with pancreatic cancer, Earl is one of the first residents of Levant Senior Cottages, developed by Wakeland Housing and Development Corporation in collaboration with SDHC. The development provides 126 affordable rental apartments for seniors ages 55 and older with low-income, of which 32 units are for seniors identified as frail with extremely low income.
SDHC awarded 70 housing vouchers to the development to help residents like Earl pay their monthly rent.
“The San Diego Housing Commission has given me an opportunity to live in a place that I can call a home not an apartment. And without them, there’s no way in the world that I could do this,” Earl said.
For most of his life, Earl counted on his hard work to get by. He ran a Texas-based sheet metal business successfully for 20 years and, as a single father, raised two sons. Earl remarried and built up his life. But about 15 years ago, his life spiraled after a divorce.
Earl was diagnosed with cancer in 2022 in Georgia. After his fourth chemotherapy treatment, his son brought him to Chula Vista, where he stayed for seven months before moving into an efficiency unit in Downtown San Diego.
As he underwent cancer treatment at UCSD, he was counseled about housing opportunities, and applied to live at Levant Senior Cottages.
Now following years of struggle, he’s thinking of going back to school at 67 years old and hoping to be able to give back to the community.
“I feel so grateful that I had the opportunity to have something like this, something I can call a real home—and with people like me, my age, and people we can get along with. A whole new community. A whole new life,” Earl said.
SDHC Investing in Affordable Housing
As a lender and issuer of Multifamily Housing Revenue Bonds, SDHC provides financing to make new construction and rehabilitation of affordable housing developments possible.
Loans
SDHC’s loans typically are the first source of funds affordable developers secure, which helps them obtain financing commitments from other funding sources. SDHC’s loans also fill the gap that remains after developers secure all other funding sources. SDHC’s loans consist of federal, state and local funds SDHC administers, such as:
- Federal HOME Investment Partnerships Program (HOME) funds that the U.S. Department of Housing and Urban Development (HUD) awards to the City of San Diego
- The City of San Diego Affordable Housing Fund, which SDHC administers. It consists of revenue from Housing Impact Fees charged to commercial developments and Inclusionary Housing Fees charged to residential developments.
How It Works
- SDHC issues a competitive Notice of Funding Availability (NOFA).
- Developers apply for funding through the NOFA.
- Applications are reviewed and evaluated based on the criteria stated in the NOFA.
- SDHC staff recommend loan awards to the SDHC Board of Commissioners for consideration, subject to review by the Housing Authority of the City of San Diego.
- Awarded loans are repaid to SDHC over time, based on the cash flow from the property’s revenue.
Multifamily Housing Revenue Bonds
Multifamily Housing Revenue Bonds enable affordable housing developers to obtain below-market financing because interest income from the bonds is exempt from state and federal taxes. These bonds qualify developments for federal low-income housing tax credits. These tax credits, administered by the state, are sold to private investors who contribute equity to a development in exchange for tax benefits. The allocation of tax credits is competitive. The 1986 Federal Tax Reform Act determines how much tax-exempt bond debt a state can issue in a calendar year. These bonds are used for a number of programs in California, not just affordable housing.
SDHC authorizes the issuance of tax-exempt Multifamily Housing Revenue Bonds to finance affordable housing developments in the City of San Diego. Approval from the Housing Authority of the City of San Diego is also required. The bonds do not create any financial liability for SDHC, the City of San Diego, or the Housing Authority of the City of San Diego. Private sources of funds, such as revenue from the development, are used to repay the bonds.
Recycled Bonds
Typically, when a development’s construction phase is complete, the developer pays off the majority of its tax-exempt Multifamily Housing Revenue bonds. The bonds are then “retired” and no longer available. However, SDHC participates in an innovative collaboration with the California Housing Finance Agency (CalHFA) to recycle previously allocated Multifamily Housing Revenue Bonds. CalHFA is using a portion of a large capital investment from Apple to purchase and reissue recycled bonds.
City Land Use Programs
City land use programs, such as Inclusionary Housing and Density Bonus, set requirements for developers who utilize these programs to set aside units as affordable for households with low income. SDHC executes documents recorded on the deeds of the developed properties. These deed restrictions require rents on specified units to remain affordable. SDHC’s Compliance Monitoring Department then reviews documents to ensure that the units are occupied by households with income at or below the required income level and that the rent charged for the affordable units is at or below the amount allowed for a household of that income.
Fiscal Year 2024 (July 1, 2023 – June 30, 2024)
716
Affordable Housing Units Completed (New Construction and Rehabilitation)
$14.5 Million SDHC Loans Invested
$108 Million Multifamily Housing Revenue Bonds Issued
1,928
Affordable Housing Units Pending Completion
$50,492,773 SDHC Loans Approved
$389,002,261 Multifamily Housing Revenue Bonds Authorized or with Preliminary Authorization
Housing Stability After Family Tragedies
Karima and her young daughter have a new beginning with a rental home at a price they can afford at ShoreLINE, developed in collaboration with SDHC.
“It honestly feels like a fresh start,” Karima said. “(It’s) a blessing for me and my baby to go into a brand-new building. … I feel so much joy in my heart. I feel stability, you know?”
A San Diego native, Karima experienced a series of tragedies within about a year that created uncertainty for her and her family. She lost her 27-year-old son and two nephews in a car crash and moved into her mother’s home to care for her amid a cancer diagnosis. Then her husband, the primary source of income for her family, died of diabetes, which left Karima feeling “hopeless,” she said.
She heard about ShoreLINE from a friend and put her name on a waiting list for the property, which is adjacent to the Grantville Trolley Station. Within four months, Karima and her family moved into an apartment at the new development.
Developed by Affirmed Housing in collaboration with SDHC, the Metropolitan Transit System and others, ShoreLINE provides 124 apartments with rents affordable to households earning 30 to 60 percent of San Diego’s Area Median Income. That’s approximately $45,000 to $90,000 per year for a family of four.
SDHC awarded 25 federal rental housing vouchers to the ShoreLINE development to help pay rent for residents and authorized Multifamily Housing Revenue Bonds toward the development’s financing.
In April 2024, Karima spoke at ShoreLINE’s grand opening, with San Diego Mayor Todd Gloria, San Diego City Councilmembers Raul Campillo and Stephen Whitburn, who also serves as Chair of the Metropolitan Transit System, SDHC Vice Chair of the Board Ryan Clumpner and others.
She said seeing her furniture moved in on the same day made it feel like “a grand opening for me.”
Karima said she is looking forward to cooking for her three surviving children—ages 32, 19 and 6—and renting out the first-floor community room for a kids’ birthday party.
“I haven’t been to heaven, but it was like heaven for me,” she said. “You know, like the best feeling in the world. For me and my baby to go into a brand-new building, it’s just period, point blank, it’s a brand-new beginning.”
It was like heaven for me.”
Grand Openings
Levant Senior Cottages
126 Affordable Units
May 30, 2024
Puesta del Sol
59 Affordable Units
May 2, 2024
ShoreLINE
124 Affordable Units
April 30, 2024
Nestor Senior Villages
73 Affordable Units
April 4, 2024
Milejo Village
64 Affordable Units
November 2, 2023
Tizon
175 Affordable Units
October 4, 2023
The Helm
77 Affordable Units
August 17, 2023
Independence for a Senior
“Doll house,” “small chocolate house,” and “casita” (Spanish for “small house”) are a few of the nicknames Maria has given her new affordable apartment at Levant Senior Cottages, but her most meaningful name for it is “home.”
“My heart fills with joy and I am very thankful, primarily with God,” Maria said in Spanish. “I still can’t believe it. It’s a dream to me. And may God allow it to also be a dream for others.”
Built by Wakeland Housing and Development Corporation, in collaboration with the County of San Diego, SDHC and additional organizations, Levant Senior Cottages is an aptly named community with 126 affordable rental units for seniors with low income. It celebrated its grand opening May 30, 2024, with residents, including Maria, moving in during the following weeks.
For the past nine years, Maria could only afford to live in a converted garage she rented from her niece. Her new apartment at Levant Senior Cottages is a giant step forward for Maria.
“It has its living room. It has its kitchen and mainly its bedroom and a bathroom. To me, most important, is to have a bedroom because where I live, it doesn’t have a bedroom,” she said.
Maria will be able to afford her rent at Levant Senior Cottages with one of the 70 housing vouchers SDHC awarded to the development to help residents pay their rent.
Injuries from a car accident a few years ago, in which Maria’s car was hit from behind, limit her ability to work.
“I can do some work, like clean a house, but the pain is constantly there for the rest of my life,” she said.
Maria—who takes pride in the fact that she helped raise her four adult children to successful lives and educations—was troubled by the prospect of not being able to provide for herself. Levant Senior Cottages has put her at ease.
“One has one’s family, one has children, but I have always wanted to be independent, to the best of my ability,” Maria said. “And now I can be assured to say that I have a place where I can be living in peace.”
She said she’s thankful to SDHC and to the U.S. government for supporting housing development and programs like housing vouchers to help people in need.
I still can’t believe it. It’s a dream to me.”
Groundbreakings
Cuatro at City Heights
115 Affordable Units
April 24, 2024
SkyLINE
99 Affordable Units
February 15, 2024
Harington Heights
270 Affordable Units
January 30, 2024
Iris at San Ysidro
99 Affordable Units
December 14, 2023
Cortez Hill Apartments
87 Affordable Units
August 18, 2023
Hope and a Home to Get Back on Her Feet
After years living in single-room occupancy (SRO) properties and a homelessness shelter, Marian welcomed the stability of having an affordable rental home of her own at Puesta del Sol, built in collaboration with SDHC.
“Homelessness is no joke,” Marian said. “When I got here to the apartments, I was so overwhelmed because it was my own place. My own bathroom, my own shower. Safe inside. You’re not in the weather. You know, you’re not outside. You don’t have to worry about pesty bugs, you know, none of that. It was just home.”
A month into her stay, Marian remembered the moment she entered her new home, one of 59 one-bedroom apartments for seniors ages 55 and older with low and very low incomes. Six of these units are for seniors who previously experienced homelessness, like Marian.
“I got in, and I kind of danced around because it was, you know, it was me,” she said through laughter. “I turned on the light and went, ‘Oh, it’s mine!’”
Around 2016, Marian first lost her home and started staying in SRO properties. She had returned to San Diego from out of state to care for her ailing mother, with whom she lived. After her mother died, the SRO was the only rent Marian could afford with her limited income from her job as a cashier and stocker.
“When she passed, I had no place to go,” Marian said. “I didn’t know inflation was like this in California.”
A cutback on work hours combined with rent increases at the SRO left Marian homeless.
She moved into a Downtown shelter, even while she continued to work, she said. She added that her homelessness was surprising because she previously worked as a federal employee for 21 years.
“I paid into Social Security since the time I was 18 years old,” Marian said. “I thought I had it made, then inflation happened. As it turns out, I didn’t have enough money to rent an apartment on fixed income.”
Now, Marian is confident that she’ll be able to stay in San Diego, thanks to her affordable rental apartment at Puesta del Sol.
“The San Diego Housing Commission to me means hope,” she said. “The only thing I can see is people helping people to get on their feet.”
I was so overwhelmed because it was my own place.”
A Community and an Affordable Home
I lived just across the valley in the last five years in a condominium. But it was owned by a family that lived in Oregon.”
I thought I was in heaven right then because Rancho Bernardo is a phenomenal city, just beautiful.”
(My landlady) says, ‘As long as I’m alive, you’ll be able to stay. But when I go and when my husband goes, my children aren’t going to keep tenants. They’ll sell the house. … So I was out when she passed on this year, and her husband too.”
I looked around. Rentals were way outside of my budget at the time.”
I had looked everywhere. There was nothing like (Tizon) that I could see. This was affordable housing, beautifully handled.”
I felt like I’m on a cruise ship sometimes because there’s a social director, there’s activities. It’s a community.”
The neighbors all help each other and care about each other.”
—Carol, a resident of the Tizon affordable housing property
State Grant for Affordable Housing
Mayor Todd Gloria and SDHC announced on Aug. 30, 2023, that the State of California awarded $45 million to San Diego to support the creation of more than 1,180 affordable homes through the state’s Catalytic Infill Infrastructure Grant program. SDHC applied for the funds on behalf of the City. The state awarded SDHC the maximum amount available for large cities.
The proposed developments the grant will support are:
- Front Street (92101 – Council District 3). Two 40-story towers in Downtown San Diego that will provide 1,011 total units, including four managers’ units. Developer: The Michaels Organization.
- Transforming & Advancing South County Communities: Palm City Transit Village and Avanzando (92173 – Council District 8). Three sites that will make up a total of 607 units, including six managers’ units. Developer: National Community Renaissance (National CORE) and Casa Familiar.
The state program made grants available to fill gaps in financing for infrastructure and improvements to existing buildings that are necessary for specific residential or mixed-use projects in urban areas, known as infill developments.
SDHC-Owned Affordable Housing
SDHC, including its nonprofit affiliate, Housing Development Partners, owns or manages more than 4,100 housing units with rents affordable for households with low income in the City of San Diego. These properties are in communities throughout the City. SDHC also commits up to 50 units in its real estate portfolio each year to provide rapid rehousing for families experiencing homelessness.
SDHC’s Real Estate Portfolio (including Housing Development Partners):
- Small-Scale Properties (1-18 Units): 132 Properties
- Medium-Scale Properties (20-80 Units): 30 Properties
- Large-Scale Properties (81+ Units): 14 Properties
As of June 30, 2024
Property Renovations – Fiscal Year 2024 (July 1, 2023 – June 30, 2024)
A Life-Changing Apartment of Their Own
Being able to move into SDHC’s Otay Villas apartments in 2019 with her husband and their daughters eased the stress Marlen had been experiencing.
Before she received the call from SDHC that her family had been selected for a unit at Otay Villas, Marlen and her daughters lived with her mother. Marlen shared a room with her older daughter, and her mother shared a room with Marlen’s 11-year-old daughter. Marlen could not afford her own apartment with the entry-level paycheck she earned at the time, and she split time between the United States and Mexico, where her husband was living at the time.
“They just called me, and my life was changed,” Marlen said of SDHC.
At Otay Villas, schools for her 15-year-old and 11-year-old daughters are nearby. Today, her husband is with the family and working in construction. Marlen is now a manager at the armored car company where she has worked the past 18 years.
“The San Diego Housing Commission helped me a lot on just building that relationship with my family that I didn’t have before, because I was able to get my own apartment,” she said.
Being able to afford rent motivated Marlen to keep succeeding and learn how to budget and manage her money better.
She recently turned to SDHC for additional resources as she looks to the future, which she hopes will include the opportunity for homeownership through SDHC’s First-Time Homebuyer program.
“My goal in life is to pursue my dreams, and I told my daughter, since the first days that we were with my mom, that I’m not going to stop until we have our own house with our own patio,” she said. “If you need something, you want something, go and get it. It doesn’t matter what it takes. You just have to go and get what you want in life.”
They just called me, and my life was changed.”
Website Portal to Search for SDHC Units
To help households with low income find rental homes that fit their budget, SDHC on April 16, 2024, launched a new online portal to make it easier to search for affordable rental housing units SDHC owns or manages. The portal allows users to search for affordable rentals by ZIP Code, address or property name. Users also can refine their search by the number of bathrooms, the rent amount, community amenities and more. The portal is available online at https://rentals.sdhc.org/searchlisting.aspx.
Increasing Density at SDHC Properties
During FY 2024, SDHC continued to advance an initiative to increase density at SDHC-owned properties to create additional affordable rental housing.
SDHC’s University Avenue Densification Pilot Project would increase the density at SDHC’s Casa Colina del Sol property in City Heights, which currently consists of 75 deed-restricted affordable rental housing units for seniors with low income, and an adjacent County of San Diego-owned parcel of land in collaboration with the County.
California State Senator Toni Atkins, the State Senate President pro Tempore at the time, advocated for state funding to support this project, and the state’s Fiscal Year 2024 budget included $2 million allocated directly to SDHC for this effort. Additionally, $850,000 in federal funding was allocated in 2024 toward the densification pilot project through U.S. Representative Juan Vargas’ Community Projects Funding request.
The predevelopment work completed so far as part of an initial phase of potential site redevelopment, including soil and geotechnical assessments and an architect’s schematic designs, suggests that approximately 88 one-bedroom units could be added at this site. City development approvals, California Environmental Quality Act documentation for the County, and identifying the financing necessary to build these units are among the next steps.
SDHC is also reviewing all of its residential properties to determine their densification potential. SDHC has worked with a consultant to review development criteria for its properties, and a planning and land development firm is analyzing the data on SDHC’s real estate portfolio. This will produce a short list of SDHC affordable rental housing properties for further consideration.
Housing Development Partners
SDHC’s nonprofit affiliate, Housing Development Partners (HDP), develops and preserves affordable housing for households with low income or experiencing homelessness, including families, seniors, veterans and individuals with special needs.
In July 2023 (early in FY 2024), the SDHC Board of Commissioners and HDP’s Board of Directors approved amendments to HDP’s bylaws to require that one of the “at large” seats on HDP’s Board of Directors be filled by a member of the Housing Authority of the City of San Diego, who is appointed by the San Diego City Council President and confirmed by the San Diego City Council.
On December 13, 2023, the San Diego City Council confirmed the appointment of Councilmember Stephen Whitburn to serve on HDP’s Board of Directors.
The HDP Board considers proposed real estate transactions, operating and property budgets and other corporate decisions for HDP. HDP Board members are not compensated for their service. HDP is staffed by SDHC employees. HDP Board of Directors
- Lisa Jones
HDP Board President (SDHC President & CEO) - Gary Gramling
HDP Board Vice Chair and Secretary - Ryan Clumpner
HDP Board Member (SDHC Vice Chair of the Board) - Eugene “Mitch” Mitchell
HDP Board Member (SDHC Chair of the Board) - Stephen Whitburn
HDP Board Member (San Diego City Councilmember)
First-Time Homebuyer Programs
City of San Diego
SDHC assists households with low or moderate income to become homeowners in the competitive, high-cost, low-vacancy residential real estate market in the City of San Diego.
The City of San Diego First-Time Homebuyer program provides deferred-payment loans and homeownership grants toward closing costs. No payments on the loans are due for 30 years or until the owner sells or rents the property. The program can preapprove applicants and provide preapproval letters. If the application and supporting documents are submitted to SDHC within five days of opening escrow, SDHC can close financing within 30 days of contract signing.
As of June 30, 2024 (Includes first-time homebuyer and affordable for-sale housing programs)
Fiscal Year 2024 (July 1, 2023 – June 30, 2024)
Households with Low Income
32
Households Assisted
88%
Approximate Percentage of Assisted Households from Underserved Communities
$3,946,720
Assistance for First-Time Homebuyers
A Place to Grow Old Together
Karina and Miguel Angel did not think homeownership would be possible for their family until they qualified for SDHC’s First-Time Homebuyer Program.
“I was hopeful,” Karina said in Spanish. “I am very happy with the purchase. We are fixing it up and making improvements. It’s almost too big for us!”
The couple and their two teenaged daughters, along with Karina’s parents, moved into a five-bedroom, two-story home in a quiet street near a cul-de-sac in San Ysidro in October 2024. Before they got the keys to their home, they rented an apartment in Otay Mesa, where their daughters – ages 19 and 13 – shared a room.
“This gives us stability as a couple, but it’s also about what we can give our daughters. When one has kids, everything you do, all your work, is for them,” said Karina, who works as an assistant accountant and has her own immigration services business. Her husband works at a shipyard.
The family is already making their new home their own. They’ve fixed the floors and added large white tiles, renovated the kitchen by adding an island and new cabinets, and installed French doors that look out to their backyard.
“We liked this house the first time we saw it,” Miguel Angel said. “I like it because it’s very quiet, and I can see us reaching our old age here.”
They previously looked into homeownership. But without assistance, they couldn’t find a place that met their needs and that they could afford.
SDHC’s First-Time Homebuyer Program for the City of San Diego provides deferred-payment loans and homeownership grants to help families earning up to 80 percent of San Diego’s Area Median Income buy their first home. Eligible buyers may qualify for a deferred-payment, second trust deed loan of up to 25 percent of the purchase price, with the interest rate set at 3 percent.
For Karina and Miguel Angel, their mortgage payment is comparable to what they were paying in rent, and their family has more space than they could have imagined.
“This is such a good program, and hopefully many people will find out about it—I have even started telling people about it—because there are many people who deserve to have their home and who could, but do not know that something like this exists.”
We liked this house the first time we saw it.”
First-Time Homebuyer Programs
County of San Diego
SDHC administers the County of San Diego’s First-Time Homebuyer programs for households with low income or middle income. These programs serve residents in unincorporated areas of the county and the following cities:
- Carlsbad
- Coronado
- Del Mar
- Encinitas
- Imperial Beach
- La Mesa
- Lemon Grove
- Poway
- San Marcos
- Santee
- Solana Beach
- Vista
Fiscal Year 2024 (July 1, 2023 – June 30, 2024)
Households with Low Income
7
Households Assisted
71%
Approximate Percentage of Assisted Households from Underserved Communities
$564,561
Assistance for First-Time Homebuyers
Households with Middle Income
13
Households Assisted
85%
Approximate Percentage of Assisted Households from Underserved Communities
$1,357,333
Assistance for First-Time Homebuyers
Additional Cities
SDHC administers first-time homebuyer programs for the cities of Chula Vista and El Cajon, which pay SDHC setup fees, underwriting fees, and an annual fee for this service. SDHC uses existing underwriting procedures, processes and staffing to administer the programs for Chula Vista and El Cajon. The programs for these cities offer deferred-payment loans toward the down payment and closing costs for first-time homebuyers with low income. The El Cajon program did not assist any households in FY 2024.
Fiscal Year 2024 (July 1, 2023 – June 30, 2024)
City of Chula Vista
4
Households Assisted
75%
Approximate Percentage of Assisted Households from Underserved Communities
$316,060
Assistance for First-Time Homebuyers
Accessory Dwelling Unit Finance Program
During Fiscal Year 2024, SDHC operated an Accessory Dwelling Unit (ADU) Finance Program that provided construction loans and technical assistance to help homeowners understand and complete the process of building ADUs on their property.
The program provides low-interest construction-to-permanent loans (up to $250,000) and technical assistance for homeowners earning up to 150 percent of San Diego’s Area Median Income who have a minimum credit score of 680.
Participating homeowners may generate wealth for themselves through the increase in their property’s value and the rental income from their ADU. The program also helps create affordable rental housing in the City of San Diego because the rents for the ADUs built with help from the program are required to remain affordable for seven years for households with low income.
Fiscal Year 2024 (July 1, 2023 – June 30, 2024)
1
ADU Completed
$250,000
SDHC Loan
9
ADUs Under Construction
$2,250,000
SDHC Loans ($250,000 per homeowner)