SD Foundation, SANDAG direct $14M to equitable, affordable housing projects
The San Diego Foundation and SANDAG have announced the distribution of $14 million in state funding to 10 affordable and climate-conscious housing projects, totaling 966 units. The housing is scheduled to open between December 2026 and June 2030. The capital comes from California’s Regional Early Access Program, or REAP 2.0, according to a July 16 press release. REAP 2.0 guidelines cover the funding of housing projects that foster inclusive communities, reduce the number of miles driven by residents and include affordable units for households with moderate or low incomes. Launched in 2021, REAP 2.0 includes plans to distribute approximately $600 million to housing projects throughout the state. The majority goes to developments that meet affordability, equity and sustainability standards. Most REAP 2.0 funds pass through metropolitan planning organizations — like SANDAG, the regional planning agency for San Diego County. SANDAG selected the San Diego Foundation to distribute REAP 2.0 money in the region, which the foundation does via their San Diego Housing Fund. Foundation CFO and housing fund Managing Partner James Howell said the organization selected 10 of the 24 project applications in the latest REAP 2.0 grant cycle — including developments with more than 100 planned units in San Diego communities, including Mid-City, San Ysidro and City Heights, along with Escondido. “When evaluating projects for REAP 2.0 funding, our primary focus was on maximizing the positive impact for San Diego communities through the creation of much-needed affordable housing,” Howell said. “We assessed each proposal holistically to determine its potential to meaningfully address the region’s housing challenges.” San Diego Foundation CFO and San Diego Housing Fund Managing Partner James Howell. (Courtesy of the San Diego Foundation) Howell said that another factor in the selection process was proximity to public transit. According to Howell, REAP grants save developers 1% to 24% per unit, depending on the project. “Affordable housing developers face a number of hurdles, such as the high cost of land and labor and materials, as well as navigating local permitting processes,” Howell said. “REAP 2.0 provides a valuable funding resource, but continued collaboration between developers, public agencies and sources of funding is needed to tackle barriers that inhibit housing access and affordability.” The Partnership for the Advancement of New Americans — a nonprofit advocacy and service organization focused on refugees in San Diego — received a $1 million grant for their 150-unit mixed-use development in Mid-City, according to PANA Director for Strategic Partnerships and Development Rachel Lozano Castro. PANA Director of Strategic Partnerships and Development Rachel Lozano Castro. (Courtesy of Rachel Lozano Castro) In addition to affordable housing units with up to four bedrooms, the development, called the Refugee & Immigrant Cultural Hub, will have community spaces, offices for nonprofits and a global market where refugees and immigrants can open businesses. Castro said the REAP 2.0 grant will be spent on the hub’s predevelopment costs, which includes finalizing architectural designs. She called the hub a comprehensive approach to building affordable housing. “One of the main tenets of REAP is to think of affordable housing with adjacent infrastructure,” Castro said. “It’s climate resilience built-in with belonging and community gathering spaces,” she said. According to the project’s website, the organization has raised 60% of the development’s costs from government and other affordable housing sources and intends to raise an additional $54 million from the public for construction. “There’s shared services,” Castro said of the hub’s mixed-use design. “But also a collective action can happen.”
