February 23, 2017

66 Affordable Rental Apartments for Families will Foster ‘Village’ Atmosphere Near Transit and Encourage Growth in Encanto

San Diego Housing Commission Partnership Development will Remain Affordable for 55 Years

SAN DIEGO, CA — The development of Villa Encantada apartments, in partnership with the San Diego Housing Commission (SDHC), will provide affordable rental apartments for families within walking distance of an elementary school, a park, local businesses and a transit station, helping to foster growth in Encanto.

“Villa Encantada is a great example of the type of affordable housing development that San Diego needs. With the leadership of City Council President Myrtle Cole and the full City Council, as well as the support of the San Diego Housing Commission and our partners, this development is important to provide housing in this community that will remain affordable for low-income San Diegans for the next 55 years,” said SDHC Chairman of the Board Francisco “Frank” Urtasun.

Currently under construction, Villa Encantada is being developed by AMCAL Multi-Housing, Inc. to create 66 affordable apartments for families across the street from the Metropolitan Transit System’s (MTS) Encanto/62nd Street Trolley Station, which serves the Orange Line and four bus lines – Routes 4, 916, 917 and 961 – providing travel to Downtown San Diego, Lemon Grove and National City.

The site is owned by MTS, which previously utilized it as a parking lot for riders who used the Encanto/62nd Street Trolley Station. MTS agreed to a 55-year ground lease with AMCAL for the development of the site. A 100-space parking lot for MTS riders with its own entrance is being built along with Villa Encantada.

The City of San Diego’s Encanto Neighborhoods Community Plan, which was updated in November 2015, identifies the Encanto/62nd Street Trolley Station as the center of the Encanto Village District, which follows the City’s “City of Villages” strategy to focus growth on pedestrian-friendly, mixed-use activity centers near mass transit.

Villa Encantada would create a mixed-use, transit-oriented development that could spur additional development in the surrounding area.

SDHC approved a $7.5 million loan toward the development of Villa Encantada:

• $3 million from U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program funds awarded to the City of San Diego and administered by SDHC; and
• $4.5 million from the City of San Diego’s Inclusionary Housing Fund, which is also administered by SDHC.

The development budget for Villa Encantada is $27,016,942. In addition to funding from SDHC, the development received a $3,050,575 grant from the California Department of Housing and Community Development’s Infill Infrastructure Grant program.

These 45 two-bedroom and 21 three-bedroom apartments at Villa Encantada will remain affordable for 55 years to families earning 30 to 60 percent of San Diego’s Area Median Income, which is approximately $25,500 to $51,000 a year for a family of four. The development also includes one three-bedroom manager’s unit.

Rents per unit at Villa Encantada will range from approximately $524 to $1,098 for a two-bedroom apartment, and $605 to $1,268 for a three-bedroom unit. The estimated market rents in the area are currently $1,250 for a two-bedroom rental and $1,475 for a three-bedroom.

Villa Encantada will also include an on-site multipurpose recreation room, and residents will have access to free on-site services, which may include adult education, health and wellness classes, skills building classes, and after school programs for children.

Residents of Villa Encantada will live within walking distance of Encanto Elementary School and the Encanto Community Park and Recreation Center and near grocery stores and other businesses.

Construction is scheduled to be completed in the summer of 2018.

SDHC previously included the Villa Encantada location on its list of priority sites for Transit-Oriented Development in its Three-Year Work Plan to Facilitate Transit-Oriented Affordable Housing Development (July 1, 2011 – June 30, 2014).

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Media Contact:
Scott Marshall
Interim Vice President of Communications
San Diego Housing Commission
(619) 578-7138
scottm@sdhc.org