Releasing the notice of funding availability, city officials said it is "the first step in the implementation plan for San Diego's comprehensive affordable housing strategy." This strategy, which was created by the city manager through a collaboration of the redevelopment agency and the San Diego Housing Commission, aims to create as many as 2,185 new affordable housing units citywide over a three to five year time period. City officials are hoping that the $55 million in funds will help make this goal a reality, as it will provide developers with incentives to build affordable housing projects.

The city will begin accepting development proposals on March 3, 2003 and will continue to accept them until all the funds are expended. In order to be considered, proposed projects must contain a minimum of 15% affordable housing units and must have affordability restrictions of no less than 45 years for for-sale and 55 years for rental units. Eighty-five percent of the funding is earmarked for projects planned for households that earn at or below 80% of the area median income, and financing from the NOFA is only being offered to those projects that are unable to obtain adequate funding from traditional sources.