November 6, 2026
Up to $22 Million Available from SDHC to Help Create More Affordable Rental Homes
SAN DIEGO—The San Diego Housing Commission (SDHC) announced today that up to $22 million from funds SDHC administers is available for the construction of new affordable rental homes in the City of San Diego for households with lower income.
“The loans we award through this process will help create affordable rental homes for veterans, retirees, young people starting out on their own, families struggling to make ends meet, and our unhoused neighbors,” SDHC President and CEO Lisa Jones said. “These rental homes will provide stability and a greater opportunity for these households to thrive.”
SDHC issues Notices of Funding Availability (NOFA) each year, subject to its annual budget approval, to support the creation of affordable housing. Since 2018, SDHC has awarded more than $131 million to support the production of more than 3,100 newly constructed affordable rental homes in the City of San Diego.
SDHC awards funds to developers as low-interest, residual receipts loans through a competitive process. Developers apply for funds through SDHC’s NOFA. Typically, there is not enough money available to award funds to all the development’s that apply.
Over the years, SDHC’s loans have helped affordable housing developers close funding gaps and aided developers in securing additional funding from other sources by providing an enforceable commitment of public funds. The loans are repaid over time out of the cash flow from the property’s revenue after other approved expenses have been paid. Due to the requirements for rents to remain affordable, a property is not required to make a payment on the loan if it does not generate enough revenue in a given year. This makes affordable housing development possible.
Developers can apply for SDHC’s NOFA through SDHC’s Vendor Portal, PlanetBids, accessible on SDHC’s website at https://sdhc.org/doing-business-with-us/contracting-and-procurement-services/.
SDHC’s NOFAs are separate from, and in addition to, funds the City of San Diego makes available for affordable housing development through the Bridge to Home program, which launched in 2021. The funds available through SDHC’s latest NOFA will consist of federal and local funds SDHC administers:
- HOME Investment Partnerships Program 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
The rent at housing units created with SDHC’s funds will be required to remain affordable for at least 55 years for households with low income. The $22 million SDHC made available through its latest NOFA will support the creation of homes with rents required to remain affordable for households earning up to 60 percent of San Diego’s Area Median Income (AMI), currently $84,000 per year for a two-person household. Rent generally is considered affordable if it is 30 percent of the pre-tax household income. So, based on current limits, the rent for a household at 60 percent of AMI would be restricted to about $2,100 per month for a two-person household. However, the AMI is updated each year, resulting in adjustments to the maximum allowable rent amount as well.
Additional SDHC Participation in Affordable Housing
In addition to awarding development loans and housing vouchers, SDHC supports the creation and preservation of affordable housing through Multifamily Housing Revenue Bonds; recycled bonds; loan administration; environmental clearance process; administration of land use programs, such as Inclusionary Housing and Density Bonus, in collaboration with the City of San Diego’s Development Services Department; and ongoing compliance monitoring. SDHC also administers the City of San Diego’s Affordable Housing Preservation Fund to help keep exiting housing units affordable. Creating and preserving affordable housing is one of the Strategic Priorities in SDHC’s current Strategic Plan.
Connect with SDHC on social media:
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Media Contact:
Scott Marshall,
Vice President of Communications
San Diego Housing Commission
619-578-7138
scottm@sdhc.org
