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Lillian Place is only the second 100% restricted, large family affordable housing project built in downtown San Diego since 1994. To accomplish this remarkable feat, the project sponsors pulled together an impressive array of financing and worked through a number of site, planning, and construction difficulties. The project’s 74 units (over 30% of which contain 3 bedrooms) serve very low, low and moderate income families. The project promotes a socially balanced community and jobs/housing balance, both of which are major foci of the City’s plan for the downtown area. It has won multiple awards including Housing Project of the Year 2007 from the San Diego Housing Federation. The project respects the historical and cultural values of the site, with a beautiful urban façade that represents a new face to a blighted community in grave need of renaissance.
The Lillian Place project is restricted to very low, low, and moderate income families. There are substantial numbers of units at the lowest affordability levels – 6 of the units (8.2%) at 30% AMI, 15 units (20.5%) at 45% AMI, 24 units (32.9%) at 50% AMI and 14 units (19.2%) at 60% AMI. These units are restricted by TCAC regulations and average 49% AMI. A rarely achieved success of this project is that it blends this deep affordability with a significant number of units aimed at moderate incomes (14 units, or 19.2% of the total, at 110% AMI). The overall affordability averages 61% AMI. For the downtown community, moderately-priced units are in nearly as much demand as highly affordable ones and thus this project meets two underserved populations. All the units are restricted by covenant. The developers had to assemble four parcels owned by three different parties. While designing a dense project of 74 units on .83 acres (approximately 89 units/acre), the project had to be creative to allow open spaces and play areas for large families.
The economic stress of commuting is mitigated by several factors. There is ample and convenient public transportation (trolley and bus lines within 2 blocks). But taking a step beyond Transit-Oriented Development, the development is not only near transit but is also within easy “walk to work” distance of the San Diego Convention Center and numerous hotel and restaurant employers. Bicycle and motorcycle parking is provide for those who seek other alternatives to driving. Finally, the site provides parking at a ratio of 1:1, encouraging residents to walk and use transit.
As an urban infill project with considerable challenges, Lillian Place required a creative blend of affordable housing financing sources (CHC members in bold). Predevelopment financing to cover architecture, engineering, and other “soft” costs was provided by the Low Income Investment Fund (LIIF) and the Local Initiative Support Corporation (LISC), both nonprofit intermediary lenders. The foundation was provided by strong support from Centre City Development Corporation and the San Diego Housing Authority, who together contributed over $8 million to the project. The linchpin was secured when the project achieved a perfect score in the 2004 CTCAC Allocation Round, resulting in $10.3 million in low income housing tax credit equity via the National Equity Fund. Lillian Place also competed successfully in the Federal Home Loan Bank Affordable Housing Program Awards, which brought $235,000 in financing to assist in the deep affordability of the project. The private sector has been heavily involved in the project, with NEF as tax credit investor and Bank of the West, the FHLB AHP sponsor. Wells Fargo Bank is the construction lender, and the California Community Reinvestment Corporation (CCRC) is providing below market underwriting on the permanent loan. The two project sponsors, Wakeland Housing and Development Corporation and San Diego Interfaith Housing, are both participating in a deferred developer fee loan that was required to bring the project to completion.
