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June 16, 2026
ITEM TITLE
Housing Authority & City Housing Funding: Approve a Funding Commitment of up to $4,000,000 for the Park Hill UMC Development or the Bayview Family Apartments Development Report Number: 26-0222
Location: 545 East Naples Street and 750 E Street
Department: Housing and Homeless Services
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: Resolutions A and B: The Park Hill UMC project has been determined to be exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15061(b)(3). The Park Hill UMC project itself meets all requirements set forth in California Government Code Section 65913.16(c). No further review under CEQA is required.
Resolutions C and D: The Bayview Family Apartments project was adequately covered and addressed in the previously certified Final Environmental Impact Report for the Urban Core Specific Plan (FEIR06 -01; SCH #2005081121; certified by City Council Resolution No. 2007-097 on April 26, 2007).
This item was continued from the May 19, 2026, and June 2, 2026, meetings.
Recommended Actions
Adopt Resolutions A and B OR C and D:
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, and appropriations therefor. (4/5 Vote Required)
OR
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C. 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 750 E Street; and
D. City of Ch ula 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 750 E Street , and appropriatio ns therefor . (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 Park Hill UMC Project (“Park Hill UMC”) , a proposed 68 -unit development to be developed by Wakeland Housing and Development Corporation (“Wakeland”). As a secondary option, staff recommends that City Council award the funds to the runner-up submittal, Bayview Family Apartments, a proposed 101 -unit development to be built by Eden Housing, Inc. (“Eden”).
This item has been continued from the May 19 th and June 2 nd City Council meetings due to City Council consideration of community concerns regarding the Park Hill UMC project.
ENVIRONMENTAL REVIEW
Resolutions A and B: The Park Hill UMC project 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, therefore, is a mi nisterial project pursuant to State CEQA Guidelines Section 15268. Therefore, no further review under CEQA is required.
Resolutions C and D: Bayview Family Apartments was reviewed for compliance with the California Environmental Quality Act (CEQA) and it was determined the Bayview Family Apartments was adequately covered and addressed in the previously certified Final Environmental Impact Report for the Urban Core Specific Plan (EIR 06-01; SCH #2005081121; certified by City Council Resolution No. 2007-097 on April 26, 2007) in that the Bayview Family Apartments is within the scope of the program approved in 2007 and that Program Environmental Impact Report adequately des cribed the Bayview Family Apartments for the purposes of CEQA. This determination is predicated on State CEQA Guidelines Section 15183 which provides that projects that are consistent with the development density established by existing zoning, community plan, or general plan policies for which an Environmental Impact Report was certified do not require additional environmental review. Thus, pursuant to State CEQA Guidelines Section 15183, additional environmental review is not required.
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COMMUNITY ENGAGEMENT
Park Hill UMC
On Thursday, May 14, 2026, staff from Wakeland Housing and Development Corporation (Wakeland) walked door-to-door within 500 feet of the Park Hill UMC site. They met with neighbors and provided a one-page overview of the Park Hill UMC proposal, reference Attachment 1, and notified them of the funding request being considered by the Housing Authority and City Council . They also provided 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 projects 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 included a conceptual rendering and preliminary site plan (Attachment 2), and further described that Park Hill UMC 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 approval needed , and without the loan approval the Park Hill UMC project may still move forward ministerially.
Several residents were in attendance that evening, and three (3) households voiced concerns regarding soil and drainage, privacy, and parking configuration on the preliminary site design. In addition, written communications for and against the Park Hill UMC project (attached to this item) were submitted.
On June 2nd, under Item 8.2, staff presented a revised set of resolutions that would require, prior to issuance of a grading or building permit, the City Manager / Housing Authority Director’s written approval of the Park Hill UMC’s design with regards to the stated concerns regarding drainage and stormwater, privacy, and parking configuratio n. Residents from two (2) neighboring households again voiced their concerns and opposition to the Park Hill UMC project, citing additional concerns such as density, traffic, parking, impacts on public infrastructure, and emergency vehicle access. City Council considered the neighbors’ concerns and moved to continue the item to June 16th, and requested that Wakeland hold a public meeting with community members to attempt to satisfy their concerns.
Wakeland held the meeting on Tuesday, June 9 th at 6:30 p .m. inside the Park Hill UMC ch apel. Roughly 35 community members attended. Representatives from the church, Wakeland, and Wakeland’s architect (Studio E Architects), presented information about the project and fielded questions and comments from neighbors. Neighbors primarily expressed concerns about the project’s proposed density and associated impacts on traffic and parking . Wakeland solicited ideas for how to address concerns, such as planting mature trees and vegetation to promote privacy, utilization o f the church parking lot to absorb spillover parking, and a potential reduction in height from three (3) stories to two (2) stories along the rear of the property to limit sight lines of neighboring homes. Neighbors did not indicate that these would satisfy their concerns and voiced continued opposition to apartments at any feasible scale on the church property.
Bayview Family Apartments
Eden and other parties involved in its project were required to condu ct community outreach as part of a state funding application. This included hosting a booth at Chula Vista Earth Day (April 22, 2026) at the P a g e | 4
Bayfront to inform attendees of its Bayview Family Apartments project and conducting one -on-one verbal surveys at the E Street trolley station on April 24, 2026 , to seek feedback on community needs. A full list of community outreach efforts related to Bayview Family Apartments project and related transit upgrades to the E Street transit center is attached as Attachment 3.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
On March 25, 2026, the Housing and Homeless Advisory Commission vote d 3-0 to recommend that City Council adopt Resolutions A and B.
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 red evelopment era in Chula Vista. Low - Mod funds accumulate from repayments of existing loans made to affordable projects. Under state redevelopment law, when the Low -Mod fund balance exceeds a certain amount, a portion 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 its Park Hill UMC proposal, a 68-unit project to be located at 545 E.
Naples Street, and one (1) from Eden Housing, Inc. ( “Eden”) for its Bayview Family Apartments project, 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 development, including site control, the level of approvals needed for planning entitlements and competitiveness for other funding sources to complete project financing; and P a g e | 5
Developer experience and overall submittal quality.
Park Hill UMC
The proposed Park Hill UMC project is to be located on a site owned by the Park Hill Methodist Church, most recently 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 (bordering 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 pro ject 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).
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 .
Figure 1: Park Hill UMC Location Map
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Under SB4 and State Density Bonus Law, up to 108 units could be constructed on the site by right, i.e., without community input or discretionary review.
The proposed unit mix, subject to change, is provided in Table 1.
Table 1: Park Hill UMC Proposed Unit Affordability 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%
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 (designated as a “Moderate Resource” neighborhood according to opportunity maps published by CTCAC and HCD) that does not already have a concentration of affordable housing . It would be a high ly 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. As a family development located directly across from a schoo l and park, children would be able to walk to school and recreational activities, reducing congestion at dropoff and pickup times. The project is consistent with the principles expressed in the City’s adopted 2021-2029 Housing Element, including Goal 3 (facilitate affordable housing in areas of opportunity) and Goal 4 (promote equitable and accessible housing options). An overview of Goal 3 notes that “when areas of the City are predominated by one type of housing or tenure (owner versus renter occupied), it limits the housing choices of residents and perpetuates the established disparities and associated social issues.
The provision of a variety of housing types in terms of density, size, and more importantly tenure and providing these units in appropriate locations throughout the City to minimize the creation of economic housing enclaves and provide greater access to resources, amenities, and opportunity, will enable the City to accommodate the varied needs and desires of the community in order to achieve more balanced residential communities and to meet underserved housing needs of lower income households.” Similarly, Policy 4.1 affirms that the City will comply with California Assembly Bill 686, which requires cities to establish policies intended to affirmatively further fair housing and overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity.
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The low-profile preliminary design is appropriate for the location, with care taken to provide buffers between the project and the adjacent single-family neighborhood. 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 Park Hill UMC’s estimated total development cost of $53,795,340. The development 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 Park Hill UMC has not reached this milestone by the deadline, City Council and the Authority would need to authorize additional extensions, or choose to reprogram the funds to another project.
Wakeland has received 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 p ermit, which will be reviewed and approved by civil engineers with the Land 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; and/or 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.
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Bayview Family Apartments
Eden’s Bayview Family Apartments is to be located at 750 E Street, on land owned by San Diego Metropolitan Transit System (“MTS”), as depicted in Figure 2. It is a component of the Bayview Point masterplan; a mixed- use development planned on approximately 10 acres of publicly owned land at the E Street Transit Center.
Other portions of the overall development are owned by the City of Chula Vista. Because the Bayview Point masterplan is located on public land, it is subject to the California Surplus Land Act, which includes affordability requirements. The Bayview Family Apartments would be constructed in compliance with and in fulfillment of Surplus Land Act requirements.
Bayview Family Bayview Apartments is currently envisioned as a seven -story building with a central courtyard and 105 parking spaces. The project remains subject to design review and approval by the City’s Development Services Department staff. In addition to the E Street Trolley Station directly adjacent to the property, it is located near Manolo Farmer’s Market and roughly one mile from the shops, parks, and other amenities of the Third Avenue district. The site is designated as a “Low Resource ” neighborhood according to the opportunity maps provided by CTCAC and HCD.
Figure 2: Bayview Family Apartments Location
Like Park Hill UMC, Bayview Family Apartments proposes a mix of one, two, and three -bedroom units restricted at a range of incomes, f rom 30% of Area Median Income (“AMI”) to 60% of AMI. The overall affordability mix is very similar to Park Hill UMC’s proposed mix, as identified in Table 2.
Table 2: Bayview Family Apartments Unit Affordability Mix Bedroom Type Number of Units Income Category (% of Area Median Income, or AMI)
Studio 1 30%
Studio 5 40%
1 Bedroom 5 30%
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Bedroom Type Number of Units Income Category (% of Area Median Income, or AMI)
1 Bedroom 13 40%
1 Bedroom 14 50%
1 Bedroom 12 60%
2 Bedrooms 3 30%
2 Bedrooms 8 40%
2 Bedrooms 8 50%
2 Bedrooms 6 60%
3 Bedrooms 3 30%
3 Bedrooms 8 40%
3 Bedrooms 8 50%
3 Bedrooms 6 60%
2 Bedroom 1 (Manager’s unit)
Total 101
Because of its location at the E Street Transit Center, which has planned upgrades, Bayview Family Apartments is well positioned to obtain state funding through the Affordable Housing and Sustainable Communities (AHSC) program. As the name suggests, AHSC pairs funding for affordable housing with grants for related transit infrastructure upgrades to achieve greenhouse gas reductions. Eden’s project has been underwritten assuming $27 million, roughly one-third of the project’s total financing , from the AHSC program. The application deadline for the current 10 th round of AHSC funding was May 4, 2026; due to uncertainty regarding state budgets, future rounds of AHSC funding may eithe r be much smaller than the current round or may be eliminated altogether. In other words, the current AHSC funding round is to some extent a make-or-break opportunity for Bayview Family Apartments to secure this particular financing.
During the evaluation period for the City/Housing Authority’s NOFA, it was unclear whether Bayview Family Apartments would be able to meet the minimum qualification criteria for AHSC. Fortunately, since then, the project was able to submit a qualifying application. Preliminary scores, which remain subject to review and confirmation, indicate that it is likely to receive an AHSC award. ( Under program regulations, a t least one project in San Diego County must be awarded funding, and according to published self-scores by applicants, Bayview Family Apartments is the top scoring project in San Diego County.) Site control was another concern during the NOFA evaluation period, as it was unclear whether Eden had the fully enforceable ability to develop on the MTS site if awarded funds. Since then, Eden has executed a Disposition and Development Agreement (“DDA”) with MTS for development of the site, effective as of April 16, 2026.
Conclusion
Staff’s primary recommendation is to adopt Resolutions A and B awarding funds to the Park Hill UMC project.
However, as an alternate option, staff recommends that the City Council adopt Resolutions C and D committing funds to the Bayview Family Apartments project. Both proposals are responsive, resp onsible, and qualified, and both would be an asset to the City and Housing Authority’s stock of affordable housing.
DECISION-MAKER CONFLICT
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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 properties which are the subject of this action.
Consequently, this item does not present a disqualifying real property -related financial conflict of interest under California Code of R egulations 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 current-year 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 cost s. 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 affordab le 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. Bayview Family Apartments Community Outreach
Staff Contact: Brian Warwick, Housing Manager
Stacey Kurz, Director of Housing & Homeless Services