San Diego Set to Add Nearly 1,000 Affordable Homes with $14 Million State Investment
San Diego County is making major progress on its housing crisis with the addition of nearly 1,000 new affordable units, backed by a $14 million infusion from the State of California. This critical funding comes through the state’s Regional Early Action Planning (REAP 2.0) program—designed to help cities and counties across California meet their long-term housing and climate goals.
In a recent announcement, the San Diego Foundation (SDF) and the San Diego Association of Governments (SANDAG) revealed that 10 affordable housing developments across the county have been selected to receive REAP 2.0 funding. The projects are expected to bring 966 new units online between late 2026 and mid-2030, with the majority anticipated to be completed by 2027.
These homes will offer affordable housing options to a wide spectrum of San Diegans, including seniors, veterans, low- to middle-income families, immigrants, refugees, and single women. The goal is not only to ease the burden of rising housing costs—but to do so in a way that promotes equity and environmental responsibility.
The urgency is clear. Since 2020, San Diego County home prices have surged by 42%, and over one-third of residents now spend more than 30% of their income on housing. With the San Diego Housing Federation estimating a need for more than 134,000 additional affordable units, local leaders are treating this funding as a much-needed catalyst.
“This is about creating real opportunities for the people who keep our communities running—teachers, nurses, first responders, and essential workers,” said Jim Howell, CFO of the San Diego Foundation. “REAP 2.0 enables us to accelerate innovative housing approaches that not only address the housing shortage but also move us toward meeting our climate goals.”
SANDAG and the San Diego Foundation worked collaboratively to review 24 project proposals before selecting the final 10 through a competitive evaluation process. Of the $14 million awarded, $8 million will be issued as grants, while $6 million will be distributed as low-interest loans. The funding will be managed through a new regional housing trust fund led by SDF.
One notable recipient is Casa Familiar in San Ysidro. Their resident-led development project was awarded funding for its focus on environmental resilience and long-term community ownership. “This support goes far beyond dollars—it’s about climate justice, community empowerment, and equitable growth in our border communities,” said Lisa Cuestas, CEO of Casa Familiar.
This announcement also marks a significant step forward for the San Diego Housing Fund, launched by SDF in 2022. That fund is already driving nearly $1 billion in workforce housing projects across the region, with the goal of delivering 1,000 new homes each year for the next decade.
With collaboration across agencies, meaningful state investment, and a growing regional commitment to affordable and sustainable housing, San Diego County is laying the foundation for a more inclusive and livable future.