National City council advances homeownership RFP for six city-owned sites

National City Mayor David Morrison presided over a special workshop where staff presented an "Own National City" homeownership study and an associated RFP process for six city-owned properties, and the council voted unanimously to accept the report and advance the RFP.

The study, funded in part by a $450,000 SANDAG housing acceleration grant, reviews homeownership needs, assesses six city parcels for development, and evaluates three shared-equity ownership models staff say can increase long-term affordability. Angelita Palma, community development manager with the National City Housing Authority, said the study responds to a council direction to prioritize homeownership and to require that city-owned residential sites maximize affordability, including selling 75% of units to National City residents where feasible.

Consultants from CityThinkers and Kaiser Marston Associates presented site-by-site analyses and program options. Diego Velasco (CityThinkers) described the six sites — the Highland/Edda "Purple Cow" site (about 68,000 sq ft), Division/R Street, the Roosevelt lot (Roosevelt/11th), the A Avenue property (A Ave/11th), the East Plaza/Lamb's Theater corner, and a collection of parcels along Plaza Bonita Center Way — noting constraints such as topography, setbacks and high-speed thoroughfares at the Plaza Bonita corridor.

"We really think that with 68,000 square feet, there is an opportunity given the larger site to explore single family, compact single family," Velasco said when summarizing options for the Purple Cow site. Lenny Gavino of Kaiser Marston Associates outlined the RFP timetable: the RFP will be posted on the city's website and PlanetBids on March 19; respondents will have approximately 75 days to submit proposals (responses due June 6), KMA and city staff will take 60 days to review submissions, then produce preliminary findings and return recommendations to the council in early October.

Kaiser Marston reviewed three limited-equity models the city could pursue: deed-restriction programs, community land trusts and limited-equity housing cooperatives. "One thing we did find that they all have in common is that none of them meet circumstances of a local jurisdiction without a one-time public investment to meet the feasibility gap," Julie Romy (Kaiser Marston) said, describing tradeoffs between stewardship, resident control and long-term affordability.

Consultants also flagged construction-defect litigation and insurance costs as important constraints on condominium development in California, which can raise project costs and limit developers' appetite for for-sale projects. "This environment in California does impact higher insurance costs and reduces the development [of] condominiums," Romy said, adding developers reported multiple reasons — including phaseability and upfront financing needs — why condominiums are less common than townhomes.

Council members pressed staff on ownership arrangements and oversight. When asked who would hold title under the various models, staff said the city generally would not retain fee title in most models but would secure long-term restrictive covenants controlling future use (discussed as 55–99 year covenants) so that proceeds or land value would be used to preserve affordability. "The city would not maintain ownership but would have control, restrictive control of how the property would be used into the future years," Carlos Segura, director of community development, said.

Public commenters urged restoring zoning on specific parcels and prioritizing affordable housing. Michael Aguirre asked that the Sweetwater/Orange parcel be returned to zoning he said would permit an estimated 50 affordable units. Louisa McCarthy told the council long-vacant Orange Street parcels could host roughly 50 homes and also alleged an earlier exchange in which a resident reportedly was told, "you're Mexican... you like greasy food;" that allegation was raised during public comment and was not addressed further in the workshop record.

Council members expressed broad support for moving forward with the RFP and suggested staff continue seeking grant funds and policy fixes — including exploring state-level changes to construction-defect law — to expand for-sale housing opportunities. Vice Mayor Busch moved to accept the report; the motion was seconded and the council approved it unanimously. Mayor Morrison adjourned the workshop and said staff will return with a matrix of proposals and recommended actions following the RFP process.

The next procedural steps: the RFP posts March 19, proposals are due about June 6, staff review follows, and recommendations are expected to return to the council in early October.