OCEANSIDE — The city has allocated funding for three affordable housing projects, two of which are slated to start construction next year.
The City Council approved $16.25 million from the housing fund for up to 24 months. This fund comprises in-lieu fees from developers, HUD funds, and COVID relief money.
The city allocated $4.25 million for Coast Villas, a 56-unit development at 1111 and 1123 South Coast Hwy, targeting low-income, homeless seniors and veterans. Of these, 19 units are for unhoused seniors or those at risk of homelessness, 12 for homeless veterans, 36 for very low-income households, and one for the on-site property manager.
Concerns arose about Coast Villas using funds from the No Place Like Home program, which has a controversial reputation in Carlsbad due to its financing of Windsor Pointe, an affordable housing project.
However, John Seymour of National Core, the project developer, emphasized that Coast Villas differs significantly from Windsor Pointe, offering only 20% permanent supportive housing versus 50% at Windsor Pointe.
Seymour assured the City Council of on-site security, high-definition cameras, and skilled staff to manage the community, emphasizing that the development will serve local homeless veterans and seniors from Oceanside.
“They’re not coming from El Cajon or Vista, they’re from Oceanside,” Seymour said.
National Core is also behind the Mission Cove and Greenbrier Village affordable housing projects in Oceanside.
Another $6 million was allocated for a 111-unit affordable housing project at 2136 S. El Camino Real, serving low and very low-income households earning between 30% and 80% of the area median income. This project includes 30 units for people with developmental disabilities and numerous three-bedroom units to accommodate larger families.
Housing and Neighborhood Services Director Leilani Hines highlighted the need for more three-bedroom rental units, noting that 15% of Oceanside’s renters are larger households struggling with affordability, often spending over 77% of their income on rent.
“They’re paying more than 77% of their income on rent,” Hines said. “There’s not enough rental stock in the market for three-bedroom units, so this is something that we see as a great need in the community.”
Mirka Investments, the developer of the low-income housing project on El Camino Real, is also behind South River Village, a 43-unit, 100% affordable housing project poised for the northeast corner of College Boulevard and North River Road.
The city also set aside $6 million for Olive Park Apartments, a proposed up to 282-unit affordable housing project on Olive Drive. Although staff initially did not recommend it, the Housing Commission advocated for its inclusion due to sufficient funds and the potential for rising construction costs.
“The money that is in the fund will buy less if we wait,” said Commissioner Shelly Parker. “I understand the government being conservative and it’s nice to have a pot of money, but it’s only going to cost more in the future if we wait.”
While three council members supported the Housing Commission’s recommendation, Mayor Esther Sanchez and Deputy Mayor Ryan Keim opposed it. Sanchez cited concerns from Olive Drive residents about traffic congestion and landslide risks and suggested saving funds for potential future projects, such as the Reynolds Elementary property.
The El Camino project is expected to begin construction in spring 2024, Coast Villas in fall 2025, and Olive Park Apartments after completing necessary environmental and traffic reports. All projects must secure entitlements and approved tax credits or bonds before receiving city funds.
