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San Diego Approves $125M In Bond Financing For Affordable Housing Projects

San Diego Approves $125M In Bond Financing For Affordable Housing Projects
Currently a single-occupancy apartment building, the Palace Hotel at 1814 Fifth Ave. in Banker's Hill will be upgraded to studio apartments for low-income renters.

The City of San Diego has approved more than $125M in bond financing for six affordable housing projects that will provide 621 units for low-income San Diegans. Acting on behalf of the San Diego Housing Authority, the San Diego City Council approved preliminary bond financing to develop two projects, final bond authorization for three others and construction financing for yet another development. Multifamily Housing Revenue Bonds do not burden the city with a financial obligation, as developers are responsible for repayment of bonds.

“We need more housing in San Diego, especially housing that’s affordable, so this is welcome news to folks struggling to make ends meet in the current housing climate,” Mayor Kevin Faulconer said in a press release. “Adding more low-cost units is an important part of our push to tackle San Diego’s affordable housing crisis, and we’re working hard to make sure that more and more of these projects get built throughout the city.”

The council’s vote came on the heels of its approval of Faulconer’s Housing SD plan, a set of policy changes aimed at addressing the high cost of housing for low- and middle-income San Diegans by offering developers financial incentives to build more housing affordable for all income groups near transit.  

Projects approved include:

  • The Civita II Family Apartments – a 203-unit (201 affordable) multifamily rental housing development in Mission Valley;
  • Bella Vista Apartments – a 170-unit (169 affordable) multifamily rental housing complex in Encanto;
  • New Palace Hotel – an 80-unit (79 affordable) redevelopment in Bankers Hill;
  • Luna at Pacific Highlands Ranch – a 79-unit (77 affordable) multifamily rental housing development in Pacific Highlands Ranch;
  • Casa Puleta Apartments – a 54-unit (53 affordable) multifamily rental housing development in southeastern San Diego; and
  • The Post 310 Apartments – a 43-unit (42 affordable) multifamily rental housing development for families and homeless veterans near Hilltop.