September 6, 2018

137 New Affordable Apartments Break Ground in San Ysidro Near Trolley Station

Paseo La Paz, a San Diego Housing Commission partnership development, will remain affordable for 55 years

SAN DIEGO, CA – The new construction of 137 affordable rental apartments for families in San Ysidro represents the future of affordable housing development in San Diego and an important addition to the San Ysidro community that was celebrated at a groundbreaking ceremony today.

“The future of San Diego will be infill development—development like this one next to transit lines, trolley lines, in communities that already exist where the space is very limited, compact and you have to be really creative about how you build. This is the type of project that you’ll be seeing in the future of San Diego if we want to, and I think we all do, if we want to make sure that more of our children and our grandchildren have a place to live in San Diego,” said San Diego City Councilmember David Alvarez, whose district includes San Ysidro.

Paseo La Paz is a San Diego Housing Commission (SDHC) partnership development with Chelsea Investment Corporation and Casa Familiar. The development is located at 160 West Seaward Avenue, within walking distance of the Beyer Boulevard Trolley Station, which provides access to areas throughout the city for employment and education opportunities, as well as leisure activities.

“When my family first moved from Mexico here to the United States, this was the first place they arrived, here in San Ysidro. And so, to be able to now, in my role as the Chairman of the Board of the Housing Commission, to come here and be able to participate in a project like this that we know is going to do so much good for our community is a real honor to me,” SDHC Chairman of the Board Frank Urtasun said.

The mix of one-, two-, and three-bedroom apartments at Paseo La Paz will be affordable to residents earning up to 60 percent of San Diego’s Area Median Income (AMI) – currently $58,380 for a family of four. Rents will range from approximately $900 per month for a one-bedroom apartment to $1,200 per month for a three-bedroom apartment.

These units will remain affordable for 55 years.

“We do love this community. We do hope that we can do a project that really, really adds to the community in very important ways,” said James Schmid, CEO of Chelsea Investment Corporation.

Casa Familiar will provide adult education and social services that will support the families that reside at Paseo La Paz.

“This project is part of something bigger that is happening … and that will address a huge need in San Ysidro,” said Lisa Cuestas, President of Casa Familiar.

SDHC invested a loan of $9,250,000 toward the development:

• $6,900,000 from the City’s Affordable Housing Fund, administered by SDHC; and
• $2,350,000 from U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program funds, which are granted to the City of San Diego and administered by SDHC.

In addition, SDHC authorized the issuance of $28.6 million in tax-exempt Multifamily Housing Revenue Bonds toward the development of Paseo La Paz, which has an estimated total development cost of approximately $43 million. The San Diego City Council, sitting as the Housing Authority of the City of San Diego, approved these bonds.

SDHC, the City of San Diego and the Housing Authority of the City of San Diego are not financially liable for the bonds. Private sources of funds, such as revenue from the development, are used to repay the bonds.

Planned amenities at Paseo La Paz include a 2,000-square-foot community space; lounge and kitchen; computer lab; and outdoor recreation space that includes a children’s play area. Environmental sustainability features consist of solar power; water-wise plumbing and landscaping; and energy efficient appliances, windows, and interior climate control.

Construction of Paseo La Paz is estimated to be completed in November 2019.

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Media Contact:
Scott Marshall
Vice President of Communications
San Diego Housing Commission
(619) 578-7138
scottm@sdhc.org