{"id":367581,"date":"2026-06-19T20:42:20","date_gmt":"2026-06-19T20:42:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/367581\/"},"modified":"2026-06-19T20:42:20","modified_gmt":"2026-06-19T20:42:20","slug":"developers-pitch-new-affordable-housing-projects-in-national-city","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/367581\/","title":{"rendered":"Developers pitch new affordable housing projects in National City"},"content":{"rendered":"

\t\t\t\t\tWhy this matters<\/p>\n

California officials estimate San Diego County needs more than 171,000 housing units by 2029. More than 60% should be affordable, officials say.<\/p>\n

Five developers have shown interest in building more homes in National City. Now, officials must wrestle with which proposals to pick \u2014 and whether to help pay for any of them.<\/p>\n

National City councilmembers reviewed during a special workshop last month six housing projects across the city ranging from rental studios to single-family homes for sale.\u00a0<\/p>\n

National City\u2019s housing choices are moving fast. Follow the reporting.Give $10<\/a><\/p>\n

The discussion was years in the making after city officials identified the vacant sites as surplus land, which California law<\/a> requires them to prioritize converting into housing.<\/p>\n

And the new units would come as National City continues to fall short of statewide goals to build more than 5,400 units by 2029 to help address California\u2019s housing shortage and accommodate new growth, according to a city staff report<\/a> last year. San Diego County needs more than 171,000 new homes, according to regional officials<\/a>.<\/p>\n

The city received nine proposals, most of them from developers that paired up for their projects. Three of the locations have competing proposals. Officials can still negotiate with developers what each location should offer, whether that\u2019s more parking spaces, hiring construction workers under certain labor agreements and more.\u00a0<\/p>\n

Two proposals call for the city to contribute $1.5 million each, along with loans to close funding gaps.\u00a0<\/p>\n

Councilmembers Marcus Bush and Jose Rodriguez said they were disappointed by the lack of interest from developers.\u00a0<\/p>\n

City staff said they notified more than 700 developers seeking proposals, but noted that for-sale, affordable housing can be a difficult product and some aren\u2019t willing to take on that type of development.<\/p>\n

As inewsource previously reported<\/a>, officials want to use the vacant sites to tackle National City\u2019s low homeownership rates. Only one-third of National City residents are homeowners, well below the county average. Sixty percent of city households make less than the federal average income of roughly $80,000.<\/p>\n

Overall, the council discussed the competing goals of filling a housing shortage versus increasing homeownership opportunities.\u00a0<\/p>\n

\u201cWe have to find out what the right blend is in all of this,\u201d Mayor Ron Morrison said while reviewing one of the proposals.<\/p>\n

These discussions come at a time when the city faces a budget deficit<\/a>, but Morrison said project proposals are not tied to the city\u2019s upcoming budget.<\/p>\n

The council plans to resume discussions in August. Here\u2019s what developers proposed:<\/p>\n

Purple Cow
\n\"\"A rendering of the \u201cPurple Cow\u201d site proposal at Highland Avenue and Eta Street. Community HousingWorks and San Diego Habitat for Humanity jointly submitted the project for consideration. (Courtesy of city of National City)<\/p>\n

At Highland Avenue and Eta Street, two developers have jointly proposed constructing one building of 10 townhomes and a second building of 82 stacked-flats. City staff refer to it as the Purple Cow site because of the former dairy and well-known landmark that once stood there.<\/p>\n

The townhomes would be for sale and stand two to three stories high. Each townhome would have three bedrooms and a one-car garage.\u00a0<\/p>\n

The stacked flats would be rentals built four stories high. Developers proposed building a mix of one- and two-bedroom units with one parking space per home.<\/p>\n

Features include a welcoming plaza and a playground between the two buildings. It\u2019s also close to major corridors and where regional transportation officials hope to put the proposed Purple Line<\/a>.<\/p>\n

Local nonprofit Community HousingWorks and San Diego Habitat for Humanity, the developers behind the proposal, requested a $1.5 million cash contribution from the city to fill a funding gap for the stacked-flat rentals. They also requested nearly $2.9 million through what\u2019s known as a residual receipts loan.<\/p>\n

City staff said $5 million is available in a low- and moderate-income housing fund. Alternatively, the city could also find a third party to pay the upfront cash ask.<\/p>\n

Councilmember Bush said he wants developers and staff to explore whether the 82-unit proposal could include homeownership.<\/p>\n

Division Street
\n\"\"A rendering of a site proposal at Division Street and R Avenue. Community HousingWorks and San Diego Habitat for Humanity jointly submitted the project for consideration. (Courtesy of city of National City)<\/p>\n

At Division Street and R Avenue, Community HousingWorks and Habitat for Humanity jointly proposed one single-family home for sale with an accessory dwelling unit.\u00a0<\/p>\n

The two-story home would have three bedrooms. The ADU would have two bedrooms on the second floor with a two-car garage on the first floor.\u00a0<\/p>\n

City staff highlighted many obstacles with building on the small, 6,400-square-foot lot, including \u201ctopographical challenges,\u201d high noise levels and fast-moving traffic from Division and the nearby freeway, and \u201cseverely constrained\u201d access to utilities. Perks include the area\u2019s walkability and its proximity to the freeway and public transit.<\/p>\n

Roosevelt lot
\n\"\"A rendering of a site proposal at Roosevelt Avenue and West 11th Street. Otumba LLC and San Andr\u00e9s Real Estate Group jointly submitted the project for consideration. (Courtesy of city of National City)<\/p>\n

\"\"A rendering of a site proposal at Roosevelt Avenue and West 11th Street. Community HousingWorks and San Diego Habitat for Humanity jointly submitted the project for consideration. (Courtesy of city of National City)<\/p>\n

At Roosevelt Avenue and West 11th Street, two pairs of developers have submitted competing proposals.<\/p>\n

Community HousingWorks and Habitat for Humanity jointly proposed building a mix of 20 duplexes, stacked flats, lofts and townhomes for sale. The homes would range from studios and one-bedroom units and buildings would reach six stories high. The project would carve out four parking spaces on the first floor in total exclusively for the townhomes.<\/p>\n

Otumba LLC and San Andr\u00e9s Real Estate Group jointly proposed building eight stories of 121 stacked flats. It would include one- and two- bedroom units with a total of 139 parking spots. Under this proposal, the developers suggested either having future tenants rent traditionally or rent-to-own a unit over time.<\/p>\n

City staff recommended the proposal from Community HousingWorks and Habitat, but councilmembers are weighing newly learned information: Otumba owns two adjacent parcels that could be used to supplement this development. Councilmember Ditas Yamane asked staff to explore options around those parcels.<\/p>\n

Morrison praised the Otumba and San Andr\u00e9s proposal\u2019s inclusion of more parking spaces around A Avenue.<\/p>\n

\u201cParking (is) at a big premium down through there,\u201d Morrison said.<\/p>\n

During the meeting, Bush acknowledged parking availability affects locals\u2019 quality of life, but he pushed the council to prioritize preventing homelessness over parking spaces.\u00a0<\/p>\n

\u201cWe have a housing crisis, not a parking crisis,\u201d Bush said. He\u2019s open to discussing other ways to \u201cmitigate\u201d parking issues, he said.<\/p>\n

While perks to the project site include walkability and easy driveway access, challenges include proximity to an auto and industrial use zone.<\/p>\n

A Avenue lot<\/p>\n

\"\"A rendering of a site proposal at A Avenue and East 11th Street. Community HousingWorks and San Diego Habitat for Humanity jointly submitted the project for consideration. (Courtesy of city of National City)<\/p>\n

\"\"A rendering of a site proposal at A Avenue and East 11th Street. Otumba LLC and San Andr\u00e9s Real Estate Group jointly submitted the project for consideration. (Courtesy of city of National City)<\/p>\n

The A Avenue and East 11th Street site also garnered competing proposals.<\/p>\n

Community HousingWorks and Habitat together proposed building three townhomes four stories high. Each home would have three bedrooms and one parking space on the first floor.<\/p>\n

Otumba and San Andr\u00e9s jointly proposed building 18 townhomes three stories high. Each home would have four bedrooms. The project would include a total of 37 parking spaces on the first floor.<\/p>\n

The townhomes would be for sale under both projects.<\/p>\n

Like the Roosevelt site, city staff again recommended the proposal from Community HousingWorks and Habitat, but councilmembers are weighing Otumba\u2019s ownership of an adjacent parcel that could be used to supplement the project.<\/p>\n

Staff noted the 3,900-square-foot lot could have \u201cpotential access issues.\u201d Other challenges include high noise levels and designing the homes to match with the existing architectural style of the neighborhood\u2019s historic character.\u00a0<\/p>\n

The site includes nearby trees and walkability to parks and businesses, staff noted.<\/p>\n

Lamb\u2019s Theatre
\n\"\"A vacant lot at Plaza Boulevard and E Street in National City, June 17, 2026. (Sandy Huffaker for inewsource)<\/p>\n

At East Plaza Boulevard and E Avenue, two developers proposed constructing rent-to-own stacked flats or rental-only stacked flats and townhomes where the Lamb\u2019s Theatre once stood.<\/p>\n

San Ysidro nonprofit Casa Familiar proposed building 60 units of stacked flats. The homes would include a mix of one-, two- and three-bedrooms built five stories high. The developer designed a total of 68 parking spaces for the project. It also would feature a potential commercial space, a \u201cpocket\u201d park with an outdoor stage to honor the history of the former theater.\u00a0<\/p>\n

Community HousingWorks and Habitat proposed building 62 units of stacked flats. The homes would include a mix of studios and one-, and two-bedrooms five stories high. Forty-four parking spaces would be included. The developers requested a $1.5 million cash contribution from the city and a residual receipts loan of nearly $2.2 million to fill a funding gap.<\/p>\n

Casa Familiar\u2019s proposal aims to convert all renters into homeowners, which in part led city staff to recommend its project over the other. The group also owns adjacent parcels.<\/p>\n

Casa Familiar plans to use a community land trust model, which means the organization will co-own the property with the community members.<\/p>\n

Regardless of which developer the council chooses, city staff noted project constraints including \u201ctopographical challenges,\u201d potential access issues, exposure to high noise levels and fast-moving traffic on Plaza Boulevard, and potential \u201cproject complexity and costs\u201d for its mixed-use plans. Perks include a proximity to National School District\u2019s Central Elementary School and public transit.<\/p>\n

Near Plaza Bonita
\n\"\"A vacant lot at Plaza Bonita Center Way and Valley Road on Wednesday, June 17, 2026. (Sandy Huffaker for inewsource)<\/p>\n

At Plaza Bonita Center Way, Community HousingWorks and Habitat together proposed 30 townhomes for sale. At 144,000 square feet, it\u2019s the largest of the six project sites.<\/p>\n

The townhomes would include three and four bedrooms three stories high. The project would include a mix of 33 garage and outdoor parking spaces and community gardens.<\/p>\n

The site is near Sweetwater Heights Park and \u201cpotential views,\u201d city staff said. Obstacles include potential fire access challenges and a proximity to high-speed and high-volume traffic coming from the State Route 54 off-ramp at Plaza Bonita Center Way.\u00a0<\/p>\n

\t\t\tType of Content<\/p>\n

News: Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources.<\/p>\n

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Pitch in $5\/month.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Why this matters California officials estimate San Diego County needs more than 171,000 housing units by 2029. More…\n","protected":false},"author":2,"featured_media":367582,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[5970,5119,74,76,75],"class_list":["post-367581","post","type-post","status-publish","format-standard","has-post-thumbnail","category-san-diego","tag-housing-and-development","tag-national-city","tag-san-diego","tag-san-diego-headlines","tag-san-diego-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/367581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=367581"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/367581\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/367582"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=367581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=367581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=367581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}