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June 2, 2026
ITEM TITLE
Housing Authority & City Housing Funding: Approve a Funding Commitment of up to $4,000,000 for the Park Hill UMC Development
Report Number: 26-0217
Location: 545 East Naples Street
Department: Housing and Homeless Services
G.C. § 84308 Regulations Apply: Yes
Environmental Notice : The funding action has been determined to be exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15061(b)(3). The Project itself meets all requirements set forth in California Government Code Section 65913.16(c) . No further review under CEQA is required.
This item was continued from the May 19, 2026 meeting.
Recommended Action
Adopt the following resolutions:
A. Chula Vista Housing Authority resolution authorizing a commitment of up to $3,000,000 in Low- and Moderate-Income Housing Asset Fund funds for the construction of an affordable housing development to be located at 545 East Naples Street; and B. City of Chula Vista resolution authorizing a commitment of up to $1,000,000, less $25,000 for City staff administrative costs, in Local Housing Trust Fund funds for the construction of an affordable housing development to be located at 545 East Naples Street. (4/5 Vote Required)
SUMMARY
The City of Chula Vista (“City”) and Chula Vista Housing Authority (“Housing Authority”) issued a Notice of Funding Availability for new construction of affordable housing, with a combined available total of $4,000,000 (less $25,000 for administrative costs). After interviews with applicants and a thorough review of submitted materials, City staff recommend that the funds be awarded to the Project, a proposed 68 -unit development to be developed by Wakeland Housing and Development Corporation.
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On May 19, 2026 the City Council continued this item, requesting staff further address community feedback related to the Project design to adequately mitigate soil and drainage concerns, privacy concerns, and concerns regarding the site’s parking configuration . The draft Resolutions have been updated to include a condition to address these concerns.
ENVIRONMENTAL REVIEW
The funding action has been reviewed for compliance with the California Environmental Quality Act (CEQA), and it has been determined that it is exempt pursuant to State CEQA Guidelines Section 15061(b)(3), in that under the general rule, CEQA applies only to projects which have the potential for causing a significant effect on the environment. The Project that would receive these funds has been determined to meet all the requirements California Government Code Section 65913.16(c), and, there fore, is a ministerial project pursuant to State CEQA Guidelines Section 15268. Therefore, no further review under CEQA is required.
COMMUNITY ENGAGEMENT
On Thursday, May 14, 2026, Wakeland Housing and Development Corporation (Wakeland) walked door-to- door within 500 feet of the Project site. They met with neighbors and provided a one-page overview of the Project, reference Attachment 1, and notified them of the funding request being considered by the Housing Authority and City Council . They also provid ed contact information for residents to follow up with any questions or concerns. The focus of the effort was primarily informational in nature, although they welcomed feedback and input from neighbors. This method has been deployed with other Wakeland pro jects to establish early relationships with residents, particularly when a project will not go through other discretionary actions.
On May 19, 2026, City Council considered the approval of funding under Item 8.2 . Staff provided a presentation which provided a conceptual rendering and site plan, reference Attachment 2, and further described t hat the Project is eligible for streamlined ministerial approvals under Senate Bill 4 (SB4), Affordable Housing on Faith Lands Act , therefore the loan approvals would be the only discretionary item related to the Project, and without the loan approval the Project may still move forward ministerially.
Several residents were in attendance that evening, and three households voiced concerns about soil and drainage, privacy, and parking configuration on the preliminary site design. In addition, written communication, Attachment 3 was provided.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
On March 25, 2026, the Housing and Homeless Advisory Commission vote d 3-0 to recommend that City Council adopt the proposed funding action.
DISCUSSION
Notice of Funding Availability (NOFA)
The City and Housing Authority have a cumulative total of $4,000,000, less $25,000 for administrative expenses, available to issue to a project, of which $3,000,000 belongs to the Authority’s Low- and Moderate- Income Housing Asset (“Low-Mod”) fund, which is a legacy of the redevelopment era in Chula Vista. Low - Mod funds accumulate from repayments of existing loans made to affordable projects. Under state P a g e | 3
redevelopment law, when the Low -Mod fund balance exceeds a certain amount, a p ortion of it must be recommitted to new housing developments. The $3,000,000 must be committed by the end of the current fiscal year (June 30, 2026).
The remaining $1,000,000 comes from the City’s Local Housing Trust Fund (LHTF), a fund established in 2024 to take advantage of a state matching grant program of the same name. The City deposited $500,000 to the LHTF from its inclusionary housing fund. On August 27, 2025, the City was awarded a matching grant of $500,000 by the California Department of Housing and Community Development (HCD). The $500,000 includes $25,000 that the City can spend on staff time and other eligible expenses associated with administering the funds.
The City and Housing Authority NOFA opened on November 7, 2025. Submittals were due January 15, 2026, giving applicants over two (2) months to identify sites and prepare materials. Two (2) submittals were received: one (1) from Wakeland for a 68-unit project at 545 E. Naples Street (the “Project”), which is being recommended for funding, and one (1) from Eden Housing, Inc. (Eden) for a 101 -unit affordable project to be located at 750 E Street. In-person presentations and interviews with the applicants were held on February 5, 2026. A panel comprised of staff members from the City’s Housing and Homeless Services and Finance Departments reviewed the submittals and presentations.
To be considered valid, submittals had to meet a set of threshold criteria for consideration. These criteria included basic requirements, such as that the applications be complete, meet minimum affordability requirements, and that the applicants owned or were under contract to acquire the proposed location.
Projects that met the threshold criteria were then scored according to various metrics, which broadly encompassed the following factors:
Number of affordable units and depth of affordability; Locational factors (school quality, distance to grocery stores and other amenities, etc.); Readiness for developme nt, including the level of approvals needed for planning entitlements and competitiveness for other funding sources to complete project financing; and Developer experience and overall submittal quality.
The Project
The Project is located on a site owned by the Park Hill Methodist Church, currently being used as a baseball field. It is directly across the street from Greg Rogers Elementary School and Greg Rogers Park, and less than a half mile to Sunbow Park, as depicted in Figure 1. It is located in Council District 4 (it should be noted, the Project also borders Districts 2 and 3) between the I-805 freeway and Telegraph Canyon Road. It is one block away from a bus stop, Route 704, whose route travels from the Sharp Hospital and medical offices in Sunbow through downtown Chula Vista to the E Street Trolley Station.
The proposed project is 68 units, with 67 restricted affordable units and one (1) exempt manager’s unit.
There will be a range of unit sizes, from studios to 1, 2, and 3-bedrooms. All units will serve low-income families, with no special needs’ populations currently designated. The preliminary design concept shows 73 parking spaces (one space per household, plus additional spaces for staff, guests, and ADA stalls).
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Because the property is owned by a faith -based institution, it qualifies for streamlined approvals under a state law known as SB4 (California Government Code Section 65913.16). It would also qualify for a density bonus under State Density Bonus Law, which allows for modification of certain development standards.
The proposed unit mix, subject to change, is provided in Table 1.
Table 1: Proposed Affordability of Unit Mix
Bedroom Type Number of Units Income Category (% of Area Median Income, or AMI)
Studio 3 30%
Studio 1 50%
Studio 9 60%
1 Bedroom 6 30%
1 Bedroom 2 50%
1 Bedroom 8 60%
2 Bedrooms 6 30%
2 Bedrooms 2 50%
2 Bedrooms 11 60%
3 Bedrooms 6 30%
Figure 1: Location Map
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Bedroom Type Number of Units Income Category (% of Area Median Income, or AMI)
3 Bedrooms 2 50%
3 Bedrooms 11 60%
2 Bedroom 1 (Manager’s unit)
Total 68
Strengths of this proposal include the following:
The project is located in a well-resourced neighborhood that does not already have a concentration of affordable housing. It would be a highly desirable location for working families with children, on a site that under its current zoning would likely otherwise only be able to accommodate a much smaller cluster of single-family homes.
The low-profile design is appropriate for the location, with care taken to provide buffers between itself and the adjace nt single -family neighborhood , (reference an initial conceptual elevation in Figure 2 , below) . The building’s preliminary design orients the bulk of its massing towards Greg Rogers Elementary School, away from adjacent homes.
The Project can obtain land use approvals by right, without need for design review or discretionary hearings.
The Project is being designed with sustainable and energy -efficient design principles in in mind, including all-electric design, solar panels, and drought-tolerant landscaping, in order to both promote sustainability and reduce ongoing operating costs.
The City has worked with Wakeland on a number of previous developments and has a strong working relationship with the organization. Despite Eden being a larger organization statewide, Wakeland demonstrated a firmer understanding of the local land use requirements and overall regulatory and financial context for its proposal, and staff has confidence in Wakeland’s local network of contractors to deliver high-quality projects.
The City/Authority’s financial contribution would cover a little more than seven percent (7%) of the Project’s estimated total development cost of $53,795,340. The Project will likely face challenges in assembling its remaining financing, as both Low Income Housing Tax Credits, administered by the California Tax Credit Allocation Committee (CTCAC), and other funding programs administered by the California Department of Housing and Community Development (HCD) are expected to be highly competitive amidst a reduced state budget in the coming years. The City/Authority funding commitment would include a deadline of two (2) years, plus a one-year extension at the City Manager’s discretion, to secure all its funding and be prepared to start construction; if the Project has not reached this milestone by the deadline, City Council and the Authority would n eed to authorize additional extensions, or choose to reprogram the funds to another project.
The Project’s attributes are still preliminary in nature and subject to revision. While staff will seek City Council and Authority approval for major changes to th e Project’s design, unit affordability mix, or other features, the proposal will continue to be adjusted and refined as it moves forward.
Wakeland has received the feedback from neighbors regarding the Project, and has committed to working closely with its architect to design the Project so as to address or mitigate their concerns. With regards to drainage, the Project will require a grading permit, which will be reviewed and approved by civil engineers P a g e | 6
with the Lan d Development division of the City’s Development Services Department. The grading and improvement work will comply with the City’s stormwater regulations and should resolve any current issues at the site with regards to stormwater runoff or drainage. With regards to concerns about parking and privacy, Wakeland is exploring a range of potential interventions to minimize light pollution, noise, parking safety, and visual impacts of the development. These interventions may include the following:
trees, bushes, and other landscaping;
fences or other screening to promote privacy;
strategic window placement to minimize line-of-sight intrusion; wheelstops and other barriers to prevent movement of vehicles outside the property lines; parking configurations that minimize the noise and light impacts of moving cars.
Because the Project is still in the preliminary stages, Wakeland is still exploring all possible solutions with its design team. City staff will engage with Wakeland on an ongoing basis to evaluate proposed mitigation plans. Disbursement of the loan funds shall be made contingent upon the City Manager / Housing Authority Director’s final approval of the Project’s design with regard to the aforementioned concerns.
Figure 2: Conceptual Elevation
Conclusion
Based upon community feedback and Council direction on May 19, 2026, an additional condition on the disbursement of funds has been added to the approving Resolutions that the Housing Authority and City shall not disburse loan funds until Wakeland has demonstrated to the satisfaction of the Housing Authority Director/City Manager that the Project has satisfactorily mitigated privacy, parking, and drainage concerns for properties abutting the Project.
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Since the meeting on May 19, 2026, Wakeland has been reviewing options to address these concerns such as additional landscape, adjustments in window placement, and other ways to address community design concerns.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council / Housing Authority members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action.
Consequently, this item does not present a disqualif ying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware and has not been informed by any Housing Authority/City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no fiscal impact to the General Fund.
Chula Vista Housing Authority
The Authority’s Low -Mod funds for this action were appropriated via Housing Authority Resolution No. 2025-005, adopted on June 10, 2025.
City of Chula Vista
Acceptance of the $500,000 grant portion will come from HCD and will completely offset project costs. The $500,000 local match was previously appropriated from the Housing Inclusionary fund on May 21, 2024, via Resolution No. 2024-102.
ONGOING FISCAL IMPACT
Loan repayments will be deposited into their respective accounts and redeployed into new affordable housing projects and programs. There are no other long-term fiscal impacts.
ATTACHMENTS
1. Park Hill UMC Fact Sheet – Preliminary Information
2. Park Hill UMC Conceptual Site Plan
3. Written Communication from 5/19/26 Council Meeting
Staff Contact: Brian Warwick, Housing Manager
Stacey Kurz, Director of Housing & Homeless Services