September 4, 2018
San Diego Housing Commission Announces $50 Million Investment for Affordable Housing, Including Units to Address Homelessness
Developers may apply for available funds to create and preserve affordable housing
SAN DIEGO, CA — Up to $50 million administered by the San Diego Housing Commission (SDHC) is now available to help fund the construction of new affordable rental housing, including units for San Diegans experiencing homelessness, or to rehabilitate and preserve existing affordable housing in the City of San Diego.
“Housing affordability and homelessness are inextricably connected,” said Mayor Kevin L. Faulconer. “We’re working aggressively to cut red tape and create more incentives to spur development of new housing that working families can actually afford. The release of $50 million for more affordable housing continues that momentum and sends a clear message: It’s time for builders to build.”
Three new SDHC Notices of Funding Availability (NOFA) were announced at a morning news conference on the San Diego City College campus at 14th and C Streets, across the street from the current ongoing construction of an SDHC partnership affordable rental housing development for homeless San Diegans.
“Addressing our City’s housing affordability crisis is one of the top priorities for me. San Diegans need access to housing they can afford, and this funding is an important part of providing those opportunities,” said San Diego City Councilmember Georgette Gómez, Chair of the San Diego City Council’s Smart Growth and Land Use Committee and Vice Chair of the Select Committee on Homelessness.
SDHC will award funds to developers through a competitive application process. Rental housing units created or rehabilitated with these funds will be required to remain affordable for at least 55 years.
“This development funding is so important because of the impact it will have on the lives of the people who need affordable housing,” SDHC Chairman of the Board Frank Urtasun said. “Today’s announcement continues the San Diego Housing Commission’s longstanding commitment to provide affordable, safe and quality homes for low- and moderate-income families in the City of San Diego.”
The available development funding consists of:
- Up to $20 million to create affordable rental housing with supportive services for San Diegans experiencing homelessness. These funds are part of the current phase of HOUSING FIRST – SAN DIEGO, SDHC’s homelessness action plan, launched on July 1, 2017. This NOFA also includes 525 federal rental housing vouchers committed by SDHC to provide rental assistance for San Diegans experiencing homelessness. Of these, 25 vouchers are for homeless Veterans through SDHC’s partnership with the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Veterans Affairs (VA). HOUSING FIRST – SAN DIEGO included the commitment of up to $30 million in development funds over three years. The first $10 million was available during Fiscal Year (FY) 2018. This NOFA consists of SDHC’s HOUSING FIRST – SAN DIEGO development funding commitments for FY 2019 and FY 2020 and will remain open for applications until September 4, 2020, or until all available funds/vouchers have been committed, whichever occurs first. Sources of funds include local funds from the City of San Diego’s Affordable Housing Fund, administered by SDHC, and federal HOME Investment Partnerships Program funds, awarded by HUD to the City of San Diego and administered by SDHC.
- Up to $20 million to create affordable rental housing for low-income San Diegans. These funds will be awarded to developments that create rental housing units that are affordable for San Diegans with income up to 60 percent of San Diego’s Area Median Income (AMI), currently $58,380 for a four-person household. Revenue from the City’s Inclusionary Housing Fund (fee collections and program income) was more than $9 million higher than anticipated in FY 2018, which enabled SDHC to increase the funds available through this NOFA to $20 million. This NOFA will remain open for applications until December 4, 2018, to prioritize projects that are the closest to being ready to begin development. Additional potential sources of funds for this NOFA include HOME funds.
- Up to $10 million to rehabilitate affordable rental housing and/or extend its affordability. These funds will be awarded to projects that involve the acquisition and rehabilitation of existing rental housing properties that will remain affordable for 55 years for households with income up to 80 percent of AMI, currently $77,850 for a four-person household. The source of funding for this NOFA is federal Community Development Block Grant Affordable Housing Revolving Loan Funds, allocated by HUD to the City of San Diego and directed to SDHC to reimburse expenses funded by SDHC for the City’s Temporary Bridge Shelters. This NOFA will remain open for applications until December 4, 2018, to prioritize projects that are the closest to being ready to begin rehabilitation.
Developers may apply for funds through these SDHC NOFAs to obtain financing that is essential to fill the gap in funding that remains after all other available sources of funds have been secured.
These SDHC NOFAs are available through SDHC’s Vendor Portal on PlanetBids, which may be accessed through SDHC’s website, www.sdhc.org
The new NOFAs build upon SDHC’s previous investments in the creation and preservation of affordable rental housing and permanent supportive housing to address homelessness.
Since the initial launch of HOUSING FIRST – SAN DIEGO in 2014, SDHC has awarded $35.8 million toward the development of 500 permanent supportive housing units.
One of these developments is Beacon Apartments, under construction at 1435 C Street, across the street from San Diego City College. SDHC awarded $3.2 million toward the development of these 43 permanent supportive housing units by Wakeland Housing and Development Corporation.
In addition, SDHC has awarded more than $53.1 million since 2014 toward the construction or rehabilitation of 843 affordable rental housing units for low-income San Diegans.
Overall, since 2008, SDHC has partnered with developers for the new construction of 4,136 affordable rental housing units, including permanent supportive housing, and the rehabilitation of 3,509 affordable rental housing units.
For additional information, visit www.sdhc.org
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Media Contact:
Scott Marshall
Vice President of Communications
San Diego Housing Commission
619-578-7138
scottm@sdhc.org
