Chula Vista will make $4 million available to developers to build an affordable housing project and more than $500,000 in services officials say will help protect people from becoming homeless.
The City Council approved the $4.55 million plan for fiscal year 2024-25, which began this month, at its July 16 meeting.
Of the total amount, $4 million will be made available for helping finance low-income housing.
Councilmember Alonso Gonzalez said he would like to see moderate income households added to that mix because “we don’t have a lot of projects that target that (income level).”
The funds were allocated from the city’s Low and Moderate Income Housing Asset Fund. Money can be used in several ways, such as developing affordable units and services for homelessness prevention and rapid rehousing. The asset fund was established to receive and spend the revenues from housing assets of the former Redevelopment Agency, which was dissolved along with all redevelopment agencies statewide in 2012. Housing assets include land or property acquired for affordable housing and loans accruing interest that have yet to be repaid. As of June 2023, for example, the city had $25 million in outstanding balances from loans made to nonprofits and developers for properties.
According to a city staff report, the city intends to issue a Notice of Funding Availability by the end of summer. Developers can find out preliminary information through the city’s website. Stacey Kurz, director of Housing and Homeless Services, said all $4 million would be made available to a single project.
Chula Vista resident Alan Curry said the amount was too high and that allocating a portion of the $4 million would be better spent constructing or rehabilitating a building to serve as a homeless shelter, given the city has limited beds. Chula Vista has a bridge shelter with 65 pallet homes and is refurbishing a 30-room motel into apartments with wraparound services for homeless people.
“You’re still not solving the biggest thing that the people want taken care of: people in the tents,” he said. “Even though the Supreme Court says, ‘Yes, you can get rid of the homeless without shelter,’ but no, the right thing to do is provide a shelter.”
The remaining $550,000 will be distributed as follows:
- $300,000 for administrative costs, which the city said includes extending contracts and compliance services.
- $200,000 for its Homeless Prevention Program. It was established to help people on the verge of eviction by paying up to six months of missed rent and late fees. The city said it anticipates helping up to 30 households. As of June 2023, more than 20 households have benefited from the government program.
- $50,000 for its Landlord Incentive Program. It intends to assist previously unhoused people lacking rental history and credit. The program offers landlords leasing bonuses of $2,500 to accept a tenant who was previously homeless, security deposits worth up to two months’ rent, payment of application and credit check fees and a contingency fund of up to $5,000 per unit to cover any damage caused.