August 29, 2023
San Diego Housing Commission Announces $29 Million and 100 Housing Vouchers are Available to Create Affordable Housing
A portion of these resources will also support new affordable housing with supportive services for veterans experiencing homelessness
SAN DIEGO, CA — Up to $29 million in funding the San Diego Housing Commission (SDHC) administers and up to 100 Veterans Affairs Supportive Housing (VASH) vouchers are now available from SDHC to support the construction of new affordable rental housing in the City of San Diego, including units with supportive services for veterans experiencing homelessness.
“San Diego’s housing crisis compels us to do everything we can to make it easier to build homes that San Diegans can afford. The San Diego Housing Commission’s move to make $29 million available to help builders leverage additional funding sources will allow us to create hundreds more affordable homes. The City Council and I will put this investment to work as quickly as possible,” Mayor Todd Gloria said.
SDHC released its annual Notices of Funding Availability (NOFAs) today. These funds are available at the same time the City of San Diego has made approximately $20 million available for affordable housing through the Bridge to Home program.
“As housing affordability skyrockets, we must prioritize our veterans and low-income families as we consider solutions to make our region more affordable,” Council President Pro Tem Monica Montgomery Steppe said. “Affordable housing development is a critical investment to improve the quality of life for all people, and I look forward to working with SDHC, the Mayor, and the City Council on these investments.”
SDHC will award funds to developers through a competitive application process. The rent at housing units created with these funds will be required to remain affordable for at least 55 years for households with low income.
“We need more housing that people can afford,” SDHC Chair of the Board Eugene “Mitch” Mitchell said. “The resources the San Diego Housing Commission is making available today will continue to create long-term housing solutions to address the housing and homelessness crises in the City.”
Affordable housing developers obtain financing from multiple funding sources, including local, state and federal agencies, as well as banks or other private sector financial institutions. SDHC is typically the first funder, which helps a proposed affordable housing development obtain other resources by demonstrating local investment and support. This is vital to be competitive for state and other outside resources.
Other funding sources typically do not cover the full cost of developing affordable housing, leaving a financial gap for developers. SDHC’s loan funds fill that gap to make an affordable housing development possible.
The available SDHC resources announced today consist of:
- Up to $10 million and up to 100 VASH vouchers to create affordable rental housing with supportive services for San Diegans experiencing homelessness. Potential sources of funds for this NOFA include the City of San Diego Affordable Housing Fund and HOME Investment Partnerships Program funds that the U.S. Department of Housing and Urban Development (HUD) awards to the City of San Diego, which SDHC administers. The VASH vouchers will be project-based, which means they are tied to the development to which they are awarded. When a resident moves on, the voucher remains with the unit to assist another veteran experiencing homelessness. VASH vouchers are a partnership among SDHC, HUD and the U.S. Department of Veterans Affairs (VA). With HUD funding, SDHC helps pay rent for veterans experiencing homelessness to reside in a rental home of their own. The VA San Diego Healthcare System provides clinical health and case management services to VASH participants.
- Up to $19 million to create affordable rental housing for San Diegans with low income. 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 $82,680 for a family of four. Potential sources of funds for this NOFA also include the City of San Diego Affordable Housing Fund and HOME Investment Partnerships Program funds that HUD awards to the City of San Diego, which SDHC administers.
SDHC’s available funding would support the creation of approximately 100 new affordable units for people experiencing homelessness and approximately 190 new affordable units for households with low income.
These units would add to the more than 23,000 affordable housing units currently in service in the City of San Diego in which SDHC has participated through loans, bond financing, land use programs, acquisitions and development, and/or monitoring for compliance with applicable regulations. More than 2,100 affordable units have received at least preliminary approval of loans and/or bond financing from SDHC’s Board of Commissioners and are currently pending completion.
For approximately 30 years, SDHC has awarded funds as loans to affordable housing developments, which are repaid over time, depending on the cash flow from the property’s revenue. SDHC’s current portfolio of outstanding loans for multifamily affordable housing developments consists of 127 loans totaling $398.3 million, which supported the development of 7,831 affordable housing units.
SDHC’s NOFAs are available through SDHC’s Vendor Portal on PlanetBids, which may be accessed through SDHC’s website, www.sdhc.org
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. Mayor Todd Gloria announced the latest round of Bridge to Home funding–$20 million—on August 10, 2023.
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.
For additional information, visit www.sdhc.org
Connect with SDHC on social media:
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Media Contact:
Scott Marshall,
SDHC Vice President of Communications
619-578-7138
