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Council narrows Swift Avenue loan, preserves housing-commission NOFA funds after funding-decision dispute
Summary
After concerns from the independent budget analyst and council members about shifting CDBG funds, the City Council reduced a proposed $5.7 million Bridge-to-Home loan for the Swift Avenue affordable-housing project to $4 million and directed that $6 million earmarked for the Housing Commission remain available for its NOFA.
Council members on March 25 debated whether a proposed city Community Development Block Grant (CDBG) loan increase for the Swift Avenue Apartments would undo a prior council budget directive before approving an amended staff recommendation.
The amendment reduced the Economic Development Department’s proposed Bridge-to-Home loan to Swift Avenue Housing Associates LP from up to $5.7 million to $4 million and left intact $6 million previously set aside for the San Diego Housing Commission’s NOFA. Councilmember Elo Rivera moved the amendment and Council President Pro Tem Lee seconded it; the council adopted the change before approving the item.
Why it mattered: Amy Lee of the Independent Budget Analyst’s office told the council her team had reviewed the proposal and flagged timing and allocation questions. Her briefing noted a recent change in the Housing Commission’s loan award and the city’s need to satisfy a federal CDBG “timeliness” test by early May. The IBA recommended clarifying whether the $1.7 million staff requested to top up the Swift loan would reduce the Housing Commission’s allocation or could instead come from other CDBG balances.
As Steven Russell of the San Diego Housing Federation put it in public comment, “this complexity almost sank a deal” — a point he used to urge better coordination among local subsidy programs so local projects can remain competitive for state funding.
Developers and supporters: Sean Spear, CEO of Community Housing Works (the project developer), described Swift Avenue as a 56-unit, transit-oriented development in City Heights that includes 20 units set aside for veterans and a mix of incomes up to 80% of area median income. Spear and others said the city’s timely local commitments are critical to winning state and federal awards.
Council action and language: The motion approved by the council instructs staff to proceed with the Swift Avenue loan consistent with the amended terms, specifies that the city loan amount be adjusted to $4,000,000, and preserves the council’s earlier $6,000,000 allocation intended for the Housing Commission NOFA. Councilmembers emphasized they wanted council budget direction honored and for staff, the Housing Commission and IBA to coordinate further on NOFA alignment.
What happens next: Staff said the developer will continue to pursue state funding (Super NOFA / tax credits) with the local commitments in place. The city will finalize loan documents, and construction timing remains contingent on successful competitive awards and closing the capital stack.
