San Diego council approves DDA with Community Housing Works for 92-unit, 100% affordable project at 40th & Alpha

The San Diego City Council unanimously approved a resolution on Dec. 10 authorizing a disposition and development agreement (DDA) between the City and Community Housing Works (CHW) for a proposed affordable housing development at 40th & Alpha Street.

Leonardo Alarcon, successor agency coordinator in the Economic Development Department, presented the item and described the proposal’s evolution: "The updated terms and condition include a 100% affordable housing project with a minimum of 92 residential units." Alarcon said the site was a former redevelopment asset and that CHW had proposed the highest number of affordable units in the city's solicitation.

Key terms provided by staff included an appraised land sale price of $1,300,000; a due-diligence period of 90 days with up to a 30-day extension; a $150,000 good-faith deposit and a $25,000 cost deposit from the developer; an escrow closing not later than three years after the due-diligence period; and a construction timeframe of 24 months. Staff estimated project costs at approximately $52,000,000 and said CHW anticipates financing with 4% tax credits, a senior loan, deferred developer fees and other public–private sources.

Council Member Moreno moved to advance the staff recommendation, and Council President Elo Rivera seconded. Moreno said the sale and development would provide much‑needed affordable housing and childcare access in the South Crest area and neighboring communities, and urged CHW to maintain an open and transparent process with the local planning group. The motion passed unanimously, 9-0.

Why this matters: The DDA will transfer surplus city land intended for housing and obligates the developer to deliver a fully affordable project with supportive infrastructure (including childcare). If built as described, the project increases the city’s pipeline of dedicated affordable units and directs public assets toward housing in a historically underinvested area.

Public comment on the item was brief and did not record formal opposition during the item’s public-comment period. Council members praised CHW as a longstanding local affordable‑housing partner and welcomed the increase from an earlier concept of 57 units to the current minimum of 92.

Next steps: Revised pro formas and detailed sources-and-uses schedules will be returned to the city for approval as the project advances through due diligence and entitlement. The DDA authorizes the mayor or designee to execute and implement the agreement and authorizes the CFO to accept and deposit the city’s proceeds into the low‑mod housing fund.