Housing complex approved for Peñasquitos could be model compromise
San Diego City Council Approves Construction of 600-Unit Housing Complex
The San Diego City Council approved on Monday construction of a 600-unit housing complex in Rancho Peñasquitos that could become a model for alleviating the city’s housing crisis.
The developers agreed to include 115 subsidized low-rent units after months of lobbying by labor unions and residents living in a 322-unit subsidized apartment complex that will be demolished to make way for the new housing.
The project could become a model for replacing dozens more subsidized complexes across the city that are vulnerable to the same fate because covenants that locked in low rents for decades are beginning to expire.
Critics and Supporters
Some critics said that a better approach would be for the city and its housing commission to buy nearly all of those complexes before the covenants expire so they can remain entirely subsidized low-income housing.
Critics of the city say one reason this complex — PQ Village — wasn’t purchased is that the San Diego Housing Commission rarely pursues subsidized projects north of Interstate 8 because of higher land values. They say such an approach further segregates the city.
In addition to 115 subsidized units, the council’s 8-1 approval on Monday mandates that construction of the new housing can’t begin until alternate housing options are found for all residents of the existing complex with federal housing vouchers.
All residents will also get lump sum payments to help with moving costs and, in some cases, deposits on new apartments.
Quotes and Future Policies
“PQ Village residents were serious underdogs in this fight: no fancy lobbyists, no big money and no legal leverage,” said Carol Kim, spokeswoman for the San Diego Building & Construction Trades Council.
Keith Maddox, trustee of the San Diego & Imperial Counties Labor Council, said the compromise he helped broker was noteworthy, but that new city policies are needed.
“We negotiated the best deal that is possible for these residents in a really bad situation,” he said. “But this is just one example of what happens every single day in the city of San Diego because of inefficient housing policies.”
Maddox said the city should stop allowing developers to pay in-lieu fees instead of building subsidized low-income units that the law requires. He said developers prefer the fees because they are typically 70 to 75 cents on the dollar. He also said the city is often slow to use the money they raise to build subsidized units.
