State grant of $48.7 million requires Oceanside apartments to be all-affordable (original) (raw)

A proposal to build 179 apartments on a one-third-acre lot at the corner of Seagaze Drive and Nevada Street near Oceanside High School has qualified for $48.7 million from California’s Affordable Housing and Sustainable Communities (AHSC) Grant Program.

Acceptance of the money means that 100 percent of the units in the eight-story 712 Seagaze project will be reserved as affordable housing for applicants who qualify as low-income tenants, developer Bryan Elsey said Thursday.

When the Oceanside City Council approved the project in 2022, it included 64 hotel rooms and only 10 percent of the apartments were to be affordable housing, which is the minimum required by the city. The City Council signed off on the switch to all apartments in March of this year, a move the developer said would help obtain financing for construction.

The Prime Company, owned by Elsey and his twin brother Chris Elsey, will receive $35 million of the grant in the form of a loan, Bryan Elsey said in an email.

The state grant program provides grants, loans or a combination of both to projects that integrate low-carbon transportation and affordable housing, with an emphasis on benefits to disadvantaged and low-income communities.

North County Transit District will receive $12.9 million of the money as a grant, and the balance of the award will go to other service providers, such as Interfaith Community Services, which assists low-income residents of affordable housing.

“The bulk of the funding for NCTD will be used for priority signal improvement projects, which will modernize train systems and allow for more efficient and reliable operations,” transit district Director of Planning and Development Lillian Doherty said in an email Thursday.

“Funding will also be used for drought tolerant landscaping, bus stops, drainage improvements, wayfinding and other transit improvements,” Doherty said.

The Seagaze project is on the transit district’s Breeze bus line and a half-mile from the Oceanside Transit Center, where there are stops for Amtrak, Coaster and Sprinter trains.

“The development team worked with North County Transit to identify improvements that will increase transit ridership and improve the pedestrian environment,” states the grant program’s website.

“The project will provide on-site resident amenities including in-unit washers and dryers, a multi-purpose community room, work-out gym, an elevated patio deck with spa, structured covered parking, bike storage, and outdoor space,” it states.

No tenant has been secured yet for the 1,500-square-foot retail space, which is intended to provide dining options for both residents and community members.

Each apartment in the building will be a studio with about 300 square feet. A five-level garage in the building will provide parking for 149 vehicles, along with 45 racks and five storage lockers for bicycles. Access to the garage will be from an alley between Seagaze and Mission Avenue.

Gov. Gavin Newsom recently announced the state’s Housing and Community Development Department had awarded $789 million for 24 affordable housing and sustainable infrastructure projects in 20 California communities.

The only other award in San Diego County was $33.7 million to the nonprofit Casa Familiar in San Ysidro to build more than 100 affordable, rent-to-own units and improve access to public transportation.

Originally Published: August 30, 2024 at 4:13 p.m.