August 30, 2023

Mayor Gloria, Housing Commission Announce $45 Million State Grant to Create More Affordable Housing

Funding will support more than 1,180 homes affordable for low- and middle-income households

SAN DIEGO – Continuing their comprehensive approach to creating more housing that San Diegans can afford, Mayor Todd Gloria and the San Diego Housing Commission (SDHC) today announced the state has 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.

“Under the leadership of Gov. Gavin Newsom and this Legislature, the State of California has been a committed partner for cities that want to be part of the solution to the housing crisis, and this state grant represents another major step forward for San Diego,” Mayor Todd Gloria said. “We will put this funding to work as quickly as possible to build out the community infrastructure necessary to support the creation of nearly 1,200 new homes for San Diegans looking for an affordable place to live.”

On behalf of the City, SDHC applied for the funds through the state’s Catalytic Infill Infrastructure grant program. The state awarded SDHC the maximum amount available for large cities.

“Everyone in San Diego deserves a place to call home that they can afford,” SDHC Chair of the Board Eugene “Mitch” Mitchell said. “This state grant will enable us to develop a significant number of new units in the city that provide housing solutions for low- and middle-income residents. I thank Governor Newsom, Mayor Gloria and our City Council for their continuing support of efforts like these to address the housing crisis.”

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. The projects funded as part of San Diego’s application build upon policies pioneered by the City of San Diego to address housing affordability, including using surplus state land, building on underused land at a trolley stop owned by the Metropolitan Transit System, and leveraging a local community land trust. The SDHC Board of Commissioners on April 6, 2023, authorized SDHC to apply for the grants.

According to the California Department of Housing and Community Development, which administers the state grant program, the grant awarded to SDHC will fund site preparation, including demolition, excavation, grading, soil stabilization, erosion control, weed control, and dewatering. Surface improvements will include concrete paving and traffic signals. In addition, the funds will support new residential parking for the housing developments, and transit investments will fund new pathways, bus shelters, and bike facilities.

The proposed developments the grant will support are:

• Front Street (92101 – Council District 3)
  • Two 40-story towers on three properties in downtown San Diego
    • 345 West Ash St.
    • 1301 State St.
    • 1350 West Front St.
  • 1,007 total units
    • West Tower (506 total units):
      • 101 units affordable for households with 0 to 50% of San Diego’s Area Median Income (AMI)
        • Units affordable for 55 years
      • Parking: 0.75 spaces per housing unit
    • East Tower (501 total units):
      • 167 units affordable for households with up to 79% of AMI
        • Units affordable for 55 years
      • 167 units affordable for households with up 100% of AMI
        • Units affordable for 55 years
      • 167 units affordable for households with up to 120% of AMI
        • Units affordable for 55 years
      • Parking: 0.5 spaces per housing unit
    • Developer: The Michaels Organization

• Palm City Transit Village and Transforming & Advancing South County Transit Communities (TASC) [92173 – South San Diego]
  • Three sites
    • 317 Cottonwood Dr. and 210 – 240 S. Vista Ave.
    • 125 Cypress Dr.
    • 2300 Palm Ave.
  • 586 total units, of which three units will be unrestricted managers’ units
  • Affordable housing units
    • Palm City Transit Village: 483 rental housing units
      • Affordable for households with 30% to 80% of AMI
    • Avanzado: 100 rental housing units that convert to ownership at the end of the low-income housing tax credit compliance period (15 years)
      • Affordable for households with 30% to 80% of AMI
  • Developers: National Community Renaissance (National CORE) and Casa Familiar

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Media Contacts:
Office of Mayor Todd Gloria, City of San Diego
MayorPress@sandiego.gov 

Scott Marshall, San Diego Housing Commission
scottm@sdhc.org; 619-578-7138