California Housing Officials Announce Plan to Give Downtown San Diego Property a Makeover

Boards cover up the windows of a dilapidated vacant building owned by the state of California in downtown San Diego, Nov. 24, 2021.

California state housing officials announced a plan in mid-November to partner with local developers interested in transforming two blocks of real estate into affordable housing in downtown San Diego. Located right outside of Little Italy, the property is currently owned by the state and includes two vacant buildings, surface parking lots, and an office building where many employees from a number of state departments have worked over the years. 

According to their announcement on Nov. 17, the Department of Housing and Community Development is seeking partners that can build a “mixed-use development” on site. Applications for the 2.7 acres of property will be judged on housing affordability, community development, sustainability, equity, innovation, and feasibility. The state plans to maintain ownership of the property while leasing it to redevelopers for as a little as $1 per year. 

In order to subsidize the affordable housing goal, the state is also interested in innovative financial models. These could include incorporating commercial space, retail, and market rate housing. Executive director of San Diego Housing Federation Stephen Russell said that, while the project will certainly be challenging, he’s excited to see what comes from the process. 

Russel also hopes that the state’s emphasis on sustainability could inspire the city’s first “mass timber” project. Building regulators in the state recently legalized building of up to 18 stories being made out of reinforced wood, which can lower construction costs and has major environmental benefits. However, the practice is relatively new and the materials used for construction are unfamiliar to many developers. 

Little Italy | Jennifer Boyer | Flickr

While the public-private partnership may not result in new San Diego downtown condos, investors in the area should be excited to learn that the state has taken an interest in focusing resources on blighted properties across the state. Housing officials are attempting to complete this project with as little cost to taxpayers as possible, and partnering with private developers is a step in the right direction. Downtown San Diego continues to see renovations, and it appears that officials don’t plan on slowing down anytime soon.

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