California Construction News staff writer
A $100-million financing partnership between San Diego Foundation and Bear Creek Fund Advisors aims to help affordable housing projects move from planning to construction faster, beginning with a 38-unit development in San Diego’s North Park neighbourhood.
The partnership was announced alongside the groundbreaking of Louisiana Street, a development comprising 38 studio apartments that will remain affordable over the long term for San Diegans earning up to 80 per cent of the area median income.
The project is the first of four planned developments in North Park and Normal Heights that will create a combined 257 affordable homes. The remaining projects, Kansas II, Oregon and Kansas III, will break ground in the future.
Under the $100-million agreement, Bear Creek Fund Advisors will provide construction financing for affordable housing projects in San Diego. The partnership offers an alternative to traditional financing programs, which can require lengthy, competitive funding cycles.
“An approved housing project is not yet a home. It takes financing and committed partners to get construction started,” said Mayor Todd Gloria. “This new partnership creates another path to move affordable housing forward faster, beginning with 38 homes for the working San Diegans who help keep our city running. I thank the San Diego Foundation, Bear Creek and Naturally Affordable Housing for investing in North Park and helping us build a San Diego more people can afford.”
Louisiana Street brings together San Diego Foundation, Bear Creek Fund Advisors and Naturally Affordable Housing, building on city initiatives such as Complete Communities that help enable more affordable housing for the local workforce.
“Addressing San Diego’s housing needs requires bringing together partners with different strengths and using every tool available,” Mark Stuart, president and CEO of San Diego Foundation, said in a statement. “This partnership puts that approach into action, combining investment, innovative financing and local expertise to help move more affordable homes from plans to construction.”
Jonathan Stern, partner at Bear Creek Asset Management, said the project demonstrates what public-private partnerships can accomplish by combining government resources, local development expertise, nonprofit organizations and private capital.
“This project is a great example of what an effective public-private partnership can accomplish. By bringing together the resources and capabilities of city government, local developers, nonprofit organizations, and private capital, this team created a flexible financing structure tailored to the unique elements of the project,” Stern said. “Throughout the process, we remained focused on one shared goal: delivering more high-quality affordable housing to the San Diego community, faster.”
The initiative is part of San Diego Foundation’s broader commitment to expanding housing opportunities across San Diego County. The foundation aims to help 1,000 households annually secure and maintain stable, affordable housing over the next 10 years.
