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Approval of an Affordable Housing CDBG Loan Agreement with Navajo Road Housing Associates, L.P., in an amount not to exceed $3,100,000 for the Navajo Family Apt

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State & Local

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The City of San Diego has approved a $3.1 million Community Development Block Grant (CDBG) loan to Navajo Road Housing Associates, L.P. to support the acquisition and development of the Navajo Family Apartments, a new affordable housing project located at 7005 Navajo Road in the San Carlos Neighborhood. The project will replace a vacant one-story commercial building with a four-story, Type V construction residential building containing 44 affordable units—21 one-bedroom, 11 two-bedroom, and 12 three-bedroom apartments—plus one unrestricted two-bedroom manager unit and 58 covered parking spaces. A separate two-story community building will provide a multi-purpose room, kitchen, laundry facilities, and storage. The development will maintain affordability for 55 years with all units targeted at or below 60% of the Area Median Income (AMI), and 11 units are specifically reserved for individuals with intellectual or developmental disabilities. The loan proceeds will be used exclusively for property acquisition, with CDBG funds being expended during the spring of 2025 following the project’s March 2025 application for low-income housing tax credits. The project site is situated within a Highest Resource Area, less than one-quarter mile from a transit stop, and surrounded by essential amenities including grocery stores, pharmacies, schools, parks, and retail. Sustainable design is a core component, with construction required to meet or exceed a GreenPoint rating or its substantial equivalent and comply with California state energy-efficiency standards. Features include all-electric systems, Energy Star-rated appliances, dual-pane windows, high-efficiency lighting, low-flow plumbing fixtures, and drought-tolerant native landscaping. The project qualifies for a CEQA categorical exemption under Section 15332 as an infill development consistent with the City’s General Plan and zoning, and has been certified to have no significant environmental impacts on traffic, noise, air quality, or water resources. Stormwater compliance is governed by a certified SWPPP, and air quality adherence is confirmed under SDAPCD screening protocols. While the City of San Diego serves as the lead agency for programmatic oversight and environmental compliance, no formal contracting officer roles, detailed payment terms, invoicing procedures, or FAR clauses were specified in the documentation, reflecting the nature of this transaction as a grant-funded loan agreement rather than a traditional procurement contract.

General Info

San Diego provides $3.1M CDBG loan for 44 affordable units at 7005 Navajo Road, 55-year affordability, green design, 11 units for IDD individuals.

Agency

California → City of San Diego

NAICS

236116 - New Multifamily Housing Construction (except For-Sale Builders)View NAICS

Place of Performance

San Diego, CA, 92119

Set-Aside

NONE

Documents

(1)

NOE Approval of CDBG Loan Agreement with Navajo Rd Housing Assoc

PDF•notice-of-exemption

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Organization & Contact Information

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AgencyCalifornia → City of San Diego
Contacts2 people available
OfficeN/A
Organization / Agency
California → City of San Diego
Office AddressN/A
Contacts
Edgar Ramirez ManriquezAssociate Planner
contact@example.gov
+1 (555) 000-0000
Elena PascualSenior Planner
contact@example.gov
+1 (555) 000-0000

Full Description

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The proposed Loan Agreement ("Agreement") between the City of San Diego and Navajo Road Housing Associates, L.P., a California limited partnership ("Developer"), provides gap financing for the property acquisition cost for the Navajo Family Apartments affordable housing project ("Project") in an amount not to exceed $3,100,000 ("City Loan"). The City's loan to the Project is utilizing Community Development Block Grant ("CDBG") funds for the property acquisition costs. The Project is scheduled to apply for. tax credits in March 2025, and to expend the CDBG funds for the acquisition closing in spring of 2025. The Project is located at 7005 Navajo Road, San Diego, CA 92119 in the San Carlos Neighborhood of the Navajo Community Planning Area. The Project is located within an approximately 1.03-acre site ("Site"), less than one-quarter mile from an existing transit stop, within a Highest Resource Area, and near retail, restaurants, grocery, pharmacy, hardware, schools, banking and park facilities (Attachment A). The Project will consist of new construction of one 4-story Type V construction building, containing 44 affordable small to large family ·apartments, including 21 one-bedroom units, 11 two-bedroom, 12 three-bedroom units, 1 unrestricted two-bedroom manager unit, and 58 covered parking spaces. A two-story community building will also provide a community room, kitchen, and maintenance and storage space. The Sites currently improved with a vacant one-story commercial building which will be removed prior to construction. The City's fifty-five-year affordability restrictions will include 44 apartments at-60% AMI or less: Eleven units will be set aside for persons with special needs for intellectual or developmental disabilities. The Developer will apply for other Project funding sources that will have lower affordability restrictions for a mix of 30% AMI to 60% AMI households. The Project will include private balconies, a community multi-purpose space, a space to do laundry, and an outdoor garden area with seating, tot-lot and exercise area. The Project will also be sustainably designed: and constructed to achieve, at minimum, a GreenPoint rating or substantial equivalent, and will comply with State energy-efficiency standards for new construction. It will incorporate sustainable development features and technologies, including all electric systems and Energy Star-rated appliances, dual pane windows, high efficiency lighting, low flow fixtures and drought tolerant landscaping and native plants.

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