San Diego Suburb Begins $25M Affordable Housing Project

SAN MARCOS, CA-San Diego County residents are witnessing an affordability index that is spiraling out of control. According to the latest figures, the county’s median single-family home prices exceed $580,000, leaving only 20% of the population able to own a home. The apartment market also faces a tightening with nearly 97% occupancy rates and nearly two-thirds of the renter population unable to pay for market-rate apartments. One project on tap to combat those demographics is the 114-unit University Commons Apartments, being developed some 35 miles north of San Diego.Related Capital Co., a subsidiary of CharterMac, will provide $7 million in equity financing to Rancho Cucamonga-based Southern California Housing Development’s $25-million affordable housing project. “San Diego’s growing population and expanding economy has put pressure on existing apartment stock in the area,” says Ronne Thielen, executive vice president of Related Capital. As part of the agreement, Related Capital provided $7 million in equity in exchange for tax credits generated by the development. Also, California Community Reinvestment Corporation provided an additional $4 million in financing while $6.4 million was received from the California Department of Housing and Community Development.”While rents have sharply risen for almost all rental product in the San Diego area, lower-income residents are particularly hard hit by the lack of affordability in the region,” says Ashley Wright, director of development of the Southern California Housing Development Corp. Wright adds that high rents have led to waiting lists of more than 400 potential tenants on other rental properties near the University Commons site.The complex will consist of one- to three-bedroom units in three three-story buildings on about five acres. Units will range in size from 650 sf to 1,176 sf with rents expected to begin at $417 per month. Rents on the three-bedroom units at University Commons are expected to start at about $570 per month or nearly $1,150 below those at market-rate properties in the area. All units will be set-aside for residents earning 60% or less of the area median income. The project is set for a completion date sometime during the first half of 2006.