CARLSBAD — Staff shared an overview of the more than $4.5 million invested last year in the city’s Housing Trust Fund, established to help subsidize the cost of building more affordable housing.
The Housing Trust Fund was created as part of the city’s housing program in 1993 to increase affordability for lower-income households. According to the annual report, the fund has successfully assisted in new housing construction, land acquisition, first-time homebuyer loans, and low-income and homeless services.
“Over the last 30 years, the program has led to the creation of approximately 2,300 affordable homes in Carlsbad for those making between 30% and 80% of the area’s median income,” city officials said.
During the 2022-23 fiscal year, the city is said to have invested a little over $4.5 million in the Housing Trust Fund for projects such as subsidizing the construction of new affordable housing ($4,087,226), preserving affordable housing ($20,647), operating the Tyler Court Apartments for seniors ($84,002), reducing homelessness ($55,990), administration fees ($155,723) and other housing administrative support ($100,000).
Stipulations of the housing program include that the program requires developers building new residential projects in Carlsbad to make 15% of the units affordable to people with low incomes, with fees going to the Housing Trust Fund, where they’re combined with interest payments and other funding to subsidize the cost of constructing affordable housing.
The HTF could provide long-term loans for affordable housing projects and homelessness programs in Carlsbad. According to the city, each dollar the city invests through the fund allows those projects to leverage additional outside financing and federal grants.
Affordable housing projects:
- Windsor Pointe is a permanent housing project for the homeless and affordable housing for other low-income households with a veteran preference. The project consists of 48 units located on two non-contiguous sites in the Barrio neighborhood, at 965 Oak Avenue and 3606 Harding Street;
- Aviara East Apartments is a 70-unit affordable housing project located on the east side of Aviara Parkway, south of Palomar Airport Road and north of Laurel Tree Lane. The Aviara Apartment project is required to provide 70 affordable units to lower-income households. The remaining $330,438 was expended during the final phases of construction;
- Tyler Court, a 75-unit senior apartment complex, provides permanent affordable housing for very low-income seniors. In 2023, the city transferred $60,000 from the Housing Trust Fund toward the Tyler Court Apartment Fund to cover net operating costs. There were also costs of $24,002 awaiting reimbursement from additional federal grant revenue.
Regarding the preservation of affordable housing, the city has purchased affordable housing units to resell them to eligible lower-income buyers, thereby preserving, extending and enhancing the existing affordable housing stock in Carlsbad.
Additionally, the Housing Trust Fund has provided funding each year for the Carlsbad Service Center, which offers temporary day-labor employment services, employment training and readiness, access to benefits, basic needs, rental assistance and case management.
HTF dollars were also used to cover necessary administrative expenses, such as personnel expenses and maintenance and operational expenses that are specifically related to the administration of the HTF, according to the annual report.
The HTF may also use funding to supplement administrative and operational support for other housing programs. The report said a dollar amount is set aside annually to ensure the administration of the Housing Choice Voucher Program.
New housing projects
La Posada Shelter, Carlsbad’s only homeless shelter, operated by Catholic Charities, currently provides 100 beds, half of which are reserved for farm workers. The City Council advocated for Catholic Charities to expand the shelter to serve more people experiencing homelessness, including space for women and families. The total project cost was estimated at between $10 and $12 million, depending on adding a third story.
The project was scheduled to start construction sometime in 2024, depending on whether Catholic Charities could raise enough funding.
“They have been actively seeking outside funding alternatives to reduce the amount of capital needed to be raised so that project construction can start,” city staff said.
Last year, the City Council approved and accepted $2 million from San Diego County to be donated to Catholic Charities for expansion.
Marja Acres Senior Apartments, a 47-unit senior housing project that’s part of a larger townhome community located on the west side of El Camino Real, just south of Kelly Drive, is being developed by USA Properties. Marja Acres was required to make 47 units affordable to lower-income seniors.
In October 2021, the City Council approved a $650,000 loan from the HTF to increase the affordability of five units for extremely low-income households at Marja Acres. The City Council authorized a $65,000 loan the following year to help cover rising construction costs. The project was scheduled to begin sometime in 2024.
More information on affordable rental housing, affordable housing for sale and homelessness can be found at www.carlsbadca.gov/departments/housing-homeless-services/affordable-housing.
A complete list of affordable and senior rental units in Carlsbad can be found at www.carlsbadca.gov/home/showpublisheddocument/15508/638346040764730000.
Housing & Homeless Services can be reached at 442-339-2810.
