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San Diego Receives $45 Million State Grant for Building More Than 1,100 Affordable Housing Units

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San Diego Receives $45 Million State Grant for Building More Than 1,100 Affordable Housing Units

Construction continues on a large multi-unit housing development in San Diego, on Sept. 20, 2021. (Mike Blake/Reuters)

City News Service

City News Service

8/31/2023

Updated: 8/31/2023

SAN DIEGO—Mayor Todd Gloria and the San Diego Housing Commission announced on Aug. 30 that the state has awarded $45 million to San Diego for the construction of more than 1,180 affordable homes.
“Under the leadership of Gov. Gavin Newsom and this Legislature, the state of California has been a committed partner for cities that want to be part of the solution to the housing crisis, and this state grant represents another major step forward for San Diego,” Mr. Gloria said. “We will put this funding to work as quickly as possible to build out the community infrastructure necessary to support the creation of nearly 1,200 new homes for San Diegans looking for an affordable place to live.”
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 hundreds of affordable housing units for tenants ranging from zero to 120 percent of the city’s Area Median Income, with varying numbers of units for different income levels at each site.
The housing commission applied for the funds on behalf of the city through the state’s Catalytic Infill Infrastructure Grant program, which awarded San Diego the maximum amount available for large cities.
“Everyone in San Diego deserves a place to call home that they can afford,” housing commission Board 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.”
The projects funded as part of San Diego’s application build upon existing policies to address housing affordability, including using surplus state land, building on underused land at a trolley stop owned by the Metropolitan Transit System, and using a local community land trust.
According to the California Department of Housing and Community Development, which administers the state grant program, the grant awarded to the housing commission 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 housing developments, and transit investments will fund new pathways, bus shelters, and bike facilities.
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