Title
Approve the Issuance of Exempt Facility Bonds by the California Statewide Communities Development Authority for the Benefit of Island Family Housing, LP for a Qualified Residential Rental Project in an Aggregate Principal Amount not to Exceed $18,000,000 for the Purpose of Financing or Refinancing the Acquisition, Rehabilitation, Improvement and Equipping of Island Gardens (District: 1)
Title
Body
Overview
The County of San Diego (“County”) has received a request from the California Statewide Communities Development Authority (“CSCDA” or “Authority”) to approve the Authority’s issuance of tax-exempt multi-family housing revenue bonds in an aggregate principal amount not to exceed $18,000,000 (“Bonds”), for the benefit of Island Family Housing, LP (“the Borrower”), formed by a joint venture partnership between Foster Hamilton Affordable (the “Developer”) and Pacific Southwest Community Development Corporation, a nonprofit entity. The proceeds of the Bonds will be used for the purpose of making a loan to the Borrower, to enable the Borrower to finance the acquisition, rehabilitation, improvement and equipping of a 122-unit affordable multifamily housing rental project located at 3545 Island Avenue, San Diego, CA 92102 (the “Project”), which will be owned and operated by the Borrower.
The Authority is authorized to assist in financing for nonprofit public benefit organizations or for-profit corporations with a public benefit project wishing to issue exempt facility bonds, including the Borrower. In order to initiate such financing, the Borrower is asking the County, a member jurisdiction in which the project resides to approve the Authority’s issuance of the Bonds. Although the Authority will be the issuer of the Bonds for the Borrower, the financing cannot proceed without the approval of an applicable legislative body.
Pursuant to Section 147(f) of the Internal Revenue Code, a public hearing was held on August 6, 2026. There were no comments from the public at that hearing.
Today’s recommendations will provide the Authority with the required authorization to pursue its determination to issue the Bonds on behalf of the Borrower for the Project.
Recommendation by Chief Administrative Officer
Adopt a Resolution entitled:
RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO APPROVING THE ISSUANCE OF CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY exempt facility bonds for a qualified residential rental project IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $18,000,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION, REHABILITATION, IMPROVEMENT AND EQUIPPING OF ISLAND GARDENS
Equity Impact Statement
This financing will help in the creation of quality, affordable housing for 122 low-income households in San Diego County. The bonds issued will be used to finance the acquisition and rehabilitation, and development of a 122-unit affordable multifamily housing rental project located at 3545 Island Avenue, San Diego, CA 92102. The obligation will assist the Borrower to offer low-income living arrangements for households in San Diego County.
Sustainability Impact Statement
The proposed action would result in economic benefits for the community by allowing the borrower to serve 122 low-income households in the San Diego County. This financing will contribute to the County’s Sustainability Goal No. 2, providing just and equitable access, by increasing investment in underserved communities of San Diego County.
Fiscal Impact
If approved, the proposal will result in approximately $991 of unanticipated revenue to be used to reimburse the County of San Diego (County) for staff costs associated with this non-County financing. There will be no change in net General Fund cost and no additional staff years.
The Borrowers will be responsible for the payment of all present and future costs in connection with the reissuance of the financing related to the Project. The County will incur no obligation of indebtedness as a result of today’s actions.
Business Impact Statement
N/A
Details
Advisory Board Statement
The Debt Advisory Committee, composed of the Chief Financial Officer, the Auditor and Controller, and the Treasurer-Tax Collector, concurs with this recommendation.
Background
California Statewide Communities Development Authority (“CSCDA”)
CSCDA is a joint powers authority sponsored by the League of California Cities ("League") and the California State Association of Counties ("CSAC"). CSCDA was created by the League and CSAC in 1988 to enable local government and eligible private entities access to low-cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth, and improve the overall quality of life in local communities throughout California. CSCDA is comprised of more than 530 city and county members, including the County of San Diego, which has been a member since 1991. CSCDA has issued more than $80 billion through more than 1,800 financings since 1988.
Borrower
Foster Hamilton Affordable is a for-profit affordable housing sponsor, created to help stabilize neighborhoods by identifying and developing neighborhoods, providing affordable housing to low-income families, seniors, and individuals.
Foster Hamilton Affordable is partnering with Pacific Southwest Community Development Corporation, a nonprofit entity to acquire and rehabilitate Island Gardens Apartments. Foster Hamilton Affordable and Pacific Southwest Community Development Corporation formed a joint venture partnership and created Island Family Housing LP, a single purpose entity formed solely to own and operate the facility.
Project
Island Gardens Apartments is an existing multifamily rental community located at 3545 Island Avenue in San Diego, California. Originally constructed around 1960 and previously renovated in 2000, the proposed project involves the acquisition, rehabilitation and preservation of the existing residential improvements to ensure the long-term physical viability of the property while improving unit quality, accessibility, and common areas for the existing resident population.
The project consists of approximately 122 residential units, comprised primarily of two and three-bedroom apartment homes, which serve larger households and families. The proposed rehabilitation has been carefully designed to minimize resident displacement while addressing deferred maintenance, modernizing interior finishes, and improving building systems and site functionality.
The project received an award of tax-exempt bond allocation from California Debt Limit Allocation Committee (approximately $14.4 million) and tax credit from the California Tax Credit Allocation Committee (approximately $2.0 million) to help with financing the acquisition and rehabilitation of the property. The units will be restricted for tenants earning between 30%-60% of Area Median Income (AMI); 11% of total units at 30% AMI, 11% of total units at 50% AMI, and 78% of total units at 60% AMI.
County Involvement
Section 147(f) of the Internal Revenue Code (the “Code”) requires that an applicable elected body, with respect to the Project, approve the issuance and delivery of the Bonds following a public hearing therefore. The Board of Supervisors of the County of San Diego, as an applicable elected body, is requested to approve the issuance of Bonds. The Borrower shall be responsible for the payment of all present and future costs in connection with the issuance of the Bonds.
The Authority is seeking approval of the resolution from the County pursuant to Section 147(f) of the Code for this issuance.
The Authority published a notice of public hearing in the Daily Transcript on July 24, 2026, to inform members of the general public about public hearings to be held by the Authority, pursuant to Section 147(f) of the Code. The notice listed August 6, 2026 as the public hearing date with respect to the issuance of the Bonds for the Project.
Linkage To The County Of San Diego Strategic Plan
Today’s proposed action supports the Equity: Housing Strategic Initiative in the County of San Diego’s 2026-2031 Strategic Plan by supporting and allowing the issuance of exempt facility bonds by the California Statewide Communities Development Authority for the Borrower to finance or refinance the acquisition, rehabilitation, and development of a multifamily rental housing project located within the county.
Respectfully submitted,
Ebony N. Shelton
Chief Administrative Officer
Attachment(s)
1. Attachment A - Resolution
2. Attachment B - Transcript of Public Hearing
3. Attachment C - Proof of Notice of Public Hearing
4. Attachment D - CSCDA Project Application for Bonds