Affordable housing
The New Palace Hotel in Bankers Hill, a rehab project by the San Diego Housing Commission. Photo credit: The SDHC via Facebook

Mayor Todd Gloria and housing officials on Wednesday announced that the state has awarded $45 million to San Diego for construction of more than 1,180 affordable homes.

The funding will go toward two large-scale projects: 1,007 total units in two 40-story towers on three parcels of land in downtown San Diego, and 586 total units on three sites in San Ysidro.

Both projects will have units set aside for tenants who make from zero to 120% of the city’s Area Median Income. There will be varying numbers of units for the different income levels at each site.

The mayor said “this state grant represents another major step forward for San Diego,” and added that it would be used “to build out the community infrastructure necessary to support” the new homes.

The San Diego Housing Commission applied for the funds on behalf of the city through the state’s Catalytic Infill Infrastructure Grant program. The state awarded the city the maximum amount available for large cities.

“Everyone in San Diego deserves a place to call home that they can afford,” the commission board’s Chair Eugene 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.”

San Diego’s application included projects that will use surplus state land, underused sites at a transit stop and properties held by a local community land trust.

According to the California Department of Housing and Community Development, which administers the grant program, the local award will “fund site preparation, including demolition, excavation, grading, soil stabilization, erosion control, weed control and de-watering.”

Surface improvements will include concrete paving and traffic signals. In addition, the funds will support new residential parking for the developments, and transit investments will bring in new pathways, bus shelters and bike facilities.

City News Service