Why this matters
California officials estimate San Diego County needs more than 171,000 housing units by 2029. More than 60% should be affordable, officials say.
Five developers have shown interest in building more homes in National City. Now, officials must wrestle with which proposals to pick — and whether to help pay for any of them.
National City councilmembers reviewed during a special workshop last month six housing projects across the city ranging from rental studios to single-family homes for sale.
The discussion was years in the making after city officials identified the vacant sites as surplus land, which California law requires them to prioritize converting into housing.
And the new units would come as National City continues to fall short of statewide goals to build more than 5,400 units by 2029 to help address California’s housing shortage and accommodate new growth, according to a city staff report last year. San Diego County needs more than 171,000 new homes, according to regional officials.
The city received nine proposals, most of them from developers that paired up for their projects. Three of the locations have competing proposals. Officials can still negotiate with developers what each location should offer, whether that’s more parking spaces, hiring construction workers under certain labor agreements and more.
Two proposals call for the city to contribute $1.5 million each, along with loans to close funding gaps.
Councilmembers Marcus Bush and Jose Rodriguez said they were disappointed by the lack of interest from developers.
City staff said they notified more than 700 developers seeking proposals, but noted that for-sale, affordable housing can be a difficult product and some aren’t willing to take on that type of development.
As inewsource previously reported, officials want to use the vacant sites to tackle National City’s low homeownership rates. Only one-third of National City residents are homeowners, well below the county average. Sixty percent of city households make less than the federal average income of roughly $80,000.
Overall, the council discussed the competing goals of filling a housing shortage versus increasing homeownership opportunities.
“We have to find out what the right blend is in all of this,” Mayor Ron Morrison said while reviewing one of the proposals.
These discussions come at a time when the city faces a budget deficit, but Morrison said project proposals are not tied to the city’s upcoming budget.
The council plans to resume discussions in August. Here’s what developers proposed:
Purple Cow
At Highland Avenue and Eta Street, two developers have jointly proposed constructing one building of 10 townhomes and a second building of 82 stacked-flats. City staff refer to it as the Purple Cow site because of the former dairy and well-known landmark that once stood there.
The townhomes would be for sale and stand two to three stories high. Each townhome would have three bedrooms and a one-car garage.
The stacked flats would be rentals built four stories high. Developers proposed building a mix of one- and two-bedroom units with one parking space per home.
Features include a welcoming plaza and a playground between the two buildings. It’s also close to major corridors and where regional transportation officials hope to put the proposed Purple Line.
Local nonprofit Community HousingWorks and San Diego Habitat for Humanity, the developers behind the proposal, requested a $1.5 million cash contribution from the city to fill a funding gap for the stacked-flat rentals. They also requested nearly $2.9 million through what’s known as a residual receipts loan.
City staff said $5 million is available in a low- and moderate-income housing fund. Alternatively, the city could also find a third party to pay the upfront cash ask.
Councilmember Bush said he wants developers and staff to explore whether the 82-unit proposal could include homeownership.
Division Street
At Division Street and R Avenue, Community HousingWorks and Habitat for Humanity jointly proposed one single-family home for sale with an accessory dwelling unit.
The two-story home would have three bedrooms. The ADU would have two bedrooms on the second floor with a two-car garage on the first floor.
City staff highlighted many obstacles with building on the small, 6,400-square-foot lot, including “topographical challenges,” high noise levels and fast-moving traffic from Division and the nearby freeway, and “severely constrained” access to utilities. Perks include the area’s walkability and its proximity to the freeway and public transit.
Roosevelt lot
At Roosevelt Avenue and West 11th Street, two pairs of developers have submitted competing proposals.
- Community HousingWorks and Habitat for Humanity jointly proposed building a mix of 20 duplexes, stacked flats, lofts and townhomes for sale. The homes would range from studios and one-bedroom units and buildings would reach six stories high. The project would carve out four parking spaces on the first floor in total exclusively for the townhomes.
- Otumba LLC and San Andrés Real Estate Group jointly proposed building eight stories of 121 stacked flats. It would include one- and two- bedroom units with a total of 139 parking spots. Under this proposal, the developers suggested either having future tenants rent traditionally or rent-to-own a unit over time.
City staff recommended the proposal from Community HousingWorks and Habitat, but councilmembers are weighing newly learned information: Otumba owns two adjacent parcels that could be used to supplement this development. Councilmember Ditas Yamane asked staff to explore options around those parcels.
Morrison praised the Otumba and San Andrés proposal’s inclusion of more parking spaces around A Avenue.
“Parking (is) at a big premium down through there,” Morrison said.
During the meeting, Bush acknowledged parking availability affects locals’ quality of life, but he pushed the council to prioritize preventing homelessness over parking spaces.
“We have a housing crisis, not a parking crisis,” Bush said. He’s open to discussing other ways to “mitigate” parking issues, he said.
While perks to the project site include walkability and easy driveway access, challenges include proximity to an auto and industrial use zone.
A Avenue lot
The A Avenue and East 11th Street site also garnered competing proposals.
- Community HousingWorks and Habitat together proposed building three townhomes four stories high. Each home would have three bedrooms and one parking space on the first floor.
- Otumba and San Andrés jointly proposed building 18 townhomes three stories high. Each home would have four bedrooms. The project would include a total of 37 parking spaces on the first floor.
The townhomes would be for sale under both projects.
Like the Roosevelt site, city staff again recommended the proposal from Community HousingWorks and Habitat, but councilmembers are weighing Otumba’s ownership of an adjacent parcel that could be used to supplement the project.
Staff noted the 3,900-square-foot lot could have “potential access issues.” Other challenges include high noise levels and designing the homes to match with the existing architectural style of the neighborhood’s historic character.
The site includes nearby trees and walkability to parks and businesses, staff noted.
Lamb’s Theatre
At East Plaza Boulevard and E Avenue, two developers proposed constructing rent-to-own stacked flats or rental-only stacked flats and townhomes where the Lamb’s Theatre once stood.
- San Ysidro nonprofit Casa Familiar proposed building 60 units of stacked flats. The homes would include a mix of one-, two- and three-bedrooms built five stories high. The developer designed a total of 68 parking spaces for the project. It also would feature a potential commercial space, a “pocket” park with an outdoor stage to honor the history of the former theater.
- Community HousingWorks and Habitat proposed building 62 units of stacked flats. The homes would include a mix of studios and one-, and two-bedrooms five stories high. Forty-four parking spaces would be included. The developers requested a $1.5 million cash contribution from the city and a residual receipts loan of nearly $2.2 million to fill a funding gap.
Casa Familiar’s proposal aims to convert all renters into homeowners, which in part led city staff to recommend its project over the other. The group also owns adjacent parcels.
Casa Familiar plans to use a community land trust model, which means the organization will co-own the property with the community members.
Regardless of which developer the council chooses, city staff noted project constraints including “topographical challenges,” potential access issues, exposure to high noise levels and fast-moving traffic on Plaza Boulevard, and potential “project complexity and costs” for its mixed-use plans. Perks include a proximity to National School District’s Central Elementary School and public transit.
Near Plaza Bonita
At Plaza Bonita Center Way, Community HousingWorks and Habitat together proposed 30 townhomes for sale. At 144,000 square feet, it’s the largest of the six project sites.
The townhomes would include three and four bedrooms three stories high. The project would include a mix of 33 garage and outdoor parking spaces and community gardens.
The site is near Sweetwater Heights Park and “potential views,” city staff said. Obstacles include potential fire access challenges and a proximity to high-speed and high-volume traffic coming from the State Route 54 off-ramp at Plaza Bonita Center Way.
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News: Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources.
