San Diego Business Journal

San Diego Land Trust Agreement Clears Way for 16 Affordable Homes

Tuesday, January 7, 2014

San Diego City Council has approved a lease purchase agreement, allowing for the nonprofit San Diego Community Land Trust to develop 16 affordable single-family homes in the Nestor neighborhood of Southern San Diego.

Land trust officials said the city will transfer ownership of a 3.3-acre property to the trust for a payment of $16 after city approval of a final development plan. The agreement approved by City Council allows the land trust to complete due diligence and prepare a development plan.

The 16 homes will be made available to qualifying working families earning around 80 percent of the San Diego area median income, which is currently $64,500 for a family of four according to federal guidelines.

Homes will remain in the trust’s affordable home portfolio, and there will be long-term ground lease and resale restrictions limiting appreciation that sellers can capture upon a sale to subsequent income-qualified buyers. The trust will monitor maintenance, repair and improvement standards.

Officials said the land trust is aiming to expand its portfolio by 15 to 25 units per year and provide affordable homes to more than 200 working households over the next nine years. Homes will be built on land obtained from local governments or private sources, with some completed units to be acquired from developers under municipal inclusionary housing programs.

SDBJ Staff Report