LISC San Diego, a community development support organization, has made a $5.8 million loan to Housing Development Partners (HDP), to finance acquisition and closing costs for a planned $16.4 million renovation of the historic New Palace Hotel apartment property in Bankers Hill.
HDP, an affiliate of the San Diego Housing Commission, is converting the property at 1814 Fifth Ave. into a 79-unit affordable housing building for low-income seniors age 62 and older, who are at risk for homelessness. There is also a manager’s unit on the site.
Officials said the conversion is expected to take approximately 18 months. An LISC statement said the historic structure is currently a single-room-occupancy senior complex with individual bathrooms, with plans calling for renovating all units into studio apartments with kitchenettes.
Housing Commission President and CEO Richard Gentry said the units will remain affordable under federal income guidelines for 55 years. In partnership with Serving Seniors, HDP will provide medical and daily living support, nutrition and transportation assistance, among other services.
Officials said New Palace Hotel was constructed in 1913 and rebuilt in 1991, following a fire two years earlier that destroyed the building.
LISC San Diego, formed in 1991, is a local chapter of the nationwide Local Initiatives Support Corp., which partners with various entities on community revitalization projects and services. Officials said the local program has loaned and invested more than $225 million in the San Diego region since its founding.
