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The Department of Housing and Community Development Awards $20 Million
in Proposition 46 Funding to Create Housing Opportunities in the San Diego Region

(SAN MARCOS) – California Department of Housing and Community Development (HCD) Director Lynn L. Jacobs today was joined by Business, Transportation and Housing Agency Secretary Sunne Wright McPeak in announcing over $20 million in Proposition 46 funds. The awards provide housing opportunities for more than 412 of California’s hardworking families and neediest residents. Proposition 46 is the $2.1 billion housing bond approved by voters in November 2002.

"When I became Governor, I ordered that Proposition 46 funding be expedited so homes and shelters could be built more quickly," said Gov. Schwarzenegger. "I am also proud to announce the first award of funds from my Initiative to End Chronic Homelessness. The award is given to a project in the city of Santa Cruz dedicated to helping chronically homeless individuals receive the shelter and services they need to regain a healthy and productive life. "The Initiative to End Chronic Homelessness offers $40 million to assist homeless individuals and families transition to permanent, stable housing and lives.

"Gov. Schwarzenegger is committed to making affordable housing a reality for hardworking Californians and our neediest residents," said Secretary McPeak. "Today’s awards will help 1,088 families or individuals achieve that dream while supporting local economies through construction related activities.

Awards were made through the following HCD programs:

• $19.5 million in awards through the Multifamily Housing Program will provide permanent low-interest loans for the construction of new affordable apartment homes and rehabilitation of existing affordable units. Californians who make up the vital workforce that is the backbone of our economy, including seniors, the disabled, homeless and those transitioning from homelessness, are among the future residents of the homes that will be constructed or rehabilitated. The awards will help 271 California families or individuals realize the dream of an affordable rental home.
• $500,000 is awarded through the Workforce Housing Reward Program which provides financial incentives to cities and counties for issuance of building permits for 141 new homes affordable to lower income households.

"The awards announced today will help local communities remove regulatory barriers and increase homeownership, "said Director Jacobs. "They will also provide California’s essential workforce and their families the safe and affordable housing they urgently need to live and work in their communities."

HCD provides leadership, policies and programs to preserve and expand safe and affordable housing opportunities and promote strong communities for all Californians. The Department also supports increasing the supply of housing, especially affordable housing and works to improve the state’s housing conditions and the health and safety of its residents. As the lead housing department, HCD is part of the state Business, Transportation and Housing Agency.

"Proposition 46 has had a significant impact on providing affordable housing within San Diego County. Property within our area is extremely expensive to purchase. In addition, the area is characterized by a high cost of construction labor and materials, precipitated by the on-going building boom. Consequently, affordable housing is very costly to produce. Affordable housing developers must therefore, "layer" financing from a number of sources. Funds from California State Dept. of Housing and Community Development's Multifamily Housing Program (MHP), financed through Proposition 46, are one of those significant sources. Without MHP, 100's of affordable housing units would never have been built in San Diego.

The continued availability of MHP funds will facilitate the production of more affordable housing units in our community. Without those funds, many potential projects would be infeasible.

Wakeland Housing and Development Corporation is in the process of rehabilitating 93 units that serve large low income families. The units were purchased in the spring of 2006 and were in grave disrepair. Hot water tanks were leaking, the old aluminum windows no longer weatherproofed the interiors, the kitchens and bathrooms were falling apart and the landscaping was mostly gone. Wakeland is employing tax-exempt bonds, federal tax credits, funds from the San Diego Housing Commission and over $5 million of funds from the Multifamily Housing Program to redo the project and to provide a new community learning center. This project would not have been possible if it were not for the Multifamily Housing Program funding."

Barry Getzel
Senior Project Manager
Wakeland Housing and Development Corp.
San Diego, CA 92101