Escondido council approves $3 million in HOME funds for Valley Creek senior apartments
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Summary
After public debate over whether expiring HOME funds should go to tenant-based rental assistance or a permanent senior housing project, the council voted 5–0 to allocate $3 million to Valley Creek Senior Apartments, a 136-unit 100% affordable project including 14 units set aside for veterans experiencing or at risk of homelessness.
The Escondido City Council voted unanimously to allocate $3,000,000 in HOME funds to the Valley Creek Senior Apartments, a proposed 136-unit affordable senior development that staff and the joint-venture developers say will include on-site supportive services and 14 units specifically set aside for senior veterans.
Danielle Lopez, the city's housing and neighborhood services manager, told the council the proposed amendment would use approximately $583,000 in HOME funds scheduled to expire as well as about $2.4 million in future HOME allocations to assemble a local subsidy package for the project. "The project will create a 100% affordable senior housing development consisting of 136 units," Lopez said.
Members of the public urged caution about using expiring HOME funds for a project rather than deploying them for immediate tenant-based rental assistance. Lisa Richards and other speakers presented a plan they said could provide emergency rental subsidies to thousands on local wait lists; they argued the expiring funds represented an urgent, immediate resource for unhoused residents.
Ted Miyajares, president and CEO of San Diego Community Housing Corporation and the project developer partner, told the council that local subsidy is necessary to secure state bond financing and tax credits and to make the project competitive. "We need the full $3,000,000," Miyajares said, adding that local contributions bolster the application for other permanent financing sources.
Council members debated the trade-offs between short-term rental subsidies and long-term permanent housing. Supporters of the project argued that the Valley Creek development would create permanent units with long-term affordability and supportive services, while opponents urged the city to prioritize immediate rental assistance for households on the waiting list.
After discussion, the council approved the staff recommendation to submit the substantial amendment and allocate $3,000,000 to the Valley Creek Senior Apartments (motion approved 5–0). Staff said the allocation would reduce the risk that expiring HOME funds would need to be returned to HUD and would help the developer secure additional financing.
The council directed staff to continue community conversations on rental assistance and to coordinate administration of the HOME-funded project with compliance and local-preference guidance that complies with fair-housing law.
