Approval of an Affordable Housing CDBG Loan Agreement with Navajo Road Housing Associates, L.P., in an amount not to exceed $3,100,000 for the Navajo Family Apt
Summary
SCH Number
2025101382
Public Agency
City of San Diego
Document Title
Approval of an Affordable Housing CDBG Loan Agreement with Navajo Road Housing Associates, L.P., in an amount not to exceed $3,100,000 for the Navajo Family Apt
Document Type
NOE - Notice of Exemption
Received
Posted
10/28/2025
Document Description
The proposed Loan Agreement ("Agreement") between the City of San Diego and Navajo Road Housing Associates, L.P., a California limited partnership ("Developer"), provides gap financing for the property acquisition cost for the Navajo Family Apartments affordable housing project ("Project") in an amount not to exceed $3,100,000 ("City Loan"). The City's loan to the Project is utilizing Community Development Block Grant ("CDBG") funds for the property acquisition costs. The Project is scheduled to apply for. tax credits in March 2025, and to expend the CDBG funds for the acquisition closing in spring of 2025.
The Project is located at 7005 Navajo Road, San Diego, CA 92119 in the San Carlos Neighborhood of the Navajo Community Planning Area. The Project is located within an approximately 1.03-acre site ("Site"), less than one-quarter mile from an existing transit stop, within a Highest Resource Area, and near retail, restaurants, grocery, pharmacy, hardware, schools, banking and park facilities (Attachment A).
The Project will consist of new construction of one 4-story Type V construction building, containing 44 affordable small to large family ·apartments, including 21 one-bedroom units, 11 two-bedroom, 12 three-bedroom units, 1 unrestricted two-bedroom manager unit, and 58 covered parking spaces. A two-story community building will also provide a community room, kitchen, and maintenance and storage space. The Sites currently improved with a vacant one-story commercial building
which will be removed prior to construction. The City's fifty-five-year affordability restrictions will include 44 apartments at-60% AMI or less: Eleven units will be set aside for persons with special needs for intellectual or developmental disabilities. The Developer will apply for other Project funding sources that will have lower affordability restrictions for a mix of 30% AMI to 60% AMI households. The Project will include private balconies, a community multi-purpose space, a space to do laundry, and an outdoor garden area with seating, tot-lot and exercise area.
The Project will also be sustainably designed: and constructed to achieve, at minimum, a GreenPoint rating or substantial equivalent, and will comply with State energy-efficiency standards for new construction. It will incorporate sustainable development features and technologies, including all electric systems and Energy Star-rated appliances, dual pane windows, high efficiency lighting, low flow fixtures and drought tolerant landscaping and native plants.
Contact Information
Name
Edgar Ramirez Manriquez
Agency Name
City of San Diego
Job Title
Associate Planner
Contact Types
Parties Undertaking Project
Phone
Email
Name
Elena Pascual
Agency Name
City of San Diego
Job Title
Senior Planner
Contact Types
Lead/Public Agency
Phone
Email
Location
Cities
San Diego
Counties
San Diego
Regions
Citywide
Zip
92119
Total Acres
1.03
Other Location Info
7005 Navajo Road, San Diego, CA 92119
Other Information
The San Carlos Neighborhood of the Navajo Community Planning Area
Notice of Exemption
Exempt Status
Categorical Exemption
Type, Section or Code
CEOA Guidelines Section 15332 (In-Fill Development Projects)
Reasons for Exemption
The proposed Loan Agreement between the City of San Diego and Navajo Road Housing Associates, L.P, -a California limited liability partnership; for the appropriation and expenditure of Community Development Block Grant funds to provide gap financing for the property acquisition costs of the Navajo-Family Apartments affordable housing project ("Project") is categorically exempt from CEQA
pursuant to CEQA Guidelines Section 15332 (In-Fill Development Projects) which exempts projects characterized as in-fill development meeting the following conditions: (1) the project is consistent with the applicable general plan designations and all applicable general plan policies as well as with applicable zoning designation and regulations; (2) the proposed development occurs within city limits on a project site of no more-than five acres substantially surrounded by urban uses; (3) the
project site has no value as habitat for endangered, rare or threatened species; (4) approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and (5) the site can be adequately served by all required utilities and public services. The Loan Agreement will facilitate the development of the Project, and the Project (1) is consistent with the land use designation and zoning identified in the Navajo Community Plan and is also consistent with the Navajo Community Plan and General Plan policies; (2) is within City limits, is less than five acres (approximately 1.025 acres), and is substantially surrounded by urban use; (3) has been previously developed and does not support habitat for endangered, rare, or threatened species; (4) would not result in a significant Vehicle Miles Travelled (VMT) impact per the City's Transportation Study Manual, would comply with the City's noise regulations, would not result in construction or operational emissions that would not exceed the San Diego Air Pollution Control District's (SDAPCD's) screening criteria, and would not result in a significant Impact to water quality as it would Implement a Stormwater Pollution Prevention Plan (SWPPP) to prevent non-stormwater discharges from entering the City's. stormwater conveyance system and 'downstream receiving waters; and (5) Is adequately served by-all required utilities and public services. Therefore, the
approval of the Loan Agreement meets the criteria for an exemption pursuant to CEQA Guidelines section 15332 The exceptions listed in CEQA Guidelines Section 15300.2 would not apply in that no cumulative impacts were identified; no significant effects on the environment were identified; the Project would not result in impacts to a scenic highway; no historical resources would be affected by the action; and the Project was not identified on a list of hazardous waste sites pursuant to Section
65962,5 of the Government Code.
Furthermore, the proposed action has been reviewed for consistency with the Final Addendum to the General Plan Program Environmental Impact Report (PEIR) for the General Plan Housing Element Update 2021-2029 (Project No. 104495/SCH No. 2006091032) which was adopted by the San Diego City Council on June 18, 2020 (Resolution R-313099). The Project is located within a Highest Resources Area and will include new construction of 45 residential apartments including 44 one-,-two-, and three-bedroom apartments affordable on a long-term basis to households earning
60% AMI or less, 11 of which will be set aside for persons with special needs with intellectual or developmental disabilities. The Project is consistent with the General Plan Housing Element's policies and objectives which include, but are not limited to, promoting a diversity of housing available to all income groups across all communities (Objective I), supporting the provision of an array of housing for persons with physical and development disabilities (Housing Element Policy _ HE-E.11), encouraging mixed income developments accessible to lower income residents citywide
and especially in high opportunity and resource-rich areas (Housing Element Policy HE-I.2), and fostering neighborhoods that include a diversity of housing types, especially affordable, senior, age friendly, accessible,-and facility housing, including units for large families (Policy HE-M.5). Therefore, the approval of the proposed loan Agreement, which will facilitate the implementation of the Project, is a subsequent discretionary action and is not considered to be a separate project for
the purposes of CEQA review pursuant to State CEQA Guidelines Sections 15378(c) and 1506o(c)(3). Pursuant to CEQ/1. Statute Section 2116(1 and CEQ/1. Guidelines Section 15162, there is no change in circumstance, additional information,-or project changes to warrant additional environmental
review for this action. R-316094
County Clerk
San Diego
Attachments
Notice of Exemption
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