City and Local Leaders Celebrate Two New Developments Adding 131 Affordable Homes
Bringing more affordable homes to the market, this week Mayor Todd Gloria and community partners marked significant progress to expand high-quality, affordable housing with two new residential developments. Together, these developments – The Teralta in City Heights and Serra Mesa Apartments, at the site of the former Serra Mesa Library – will deliver 131 affordable homes for San Diegans and further the City’s commitment to creating safe, stable housing options for families and veterans.
Both projects benefited from the City’s innovative Bridge to Home program, which accelerates the construction of affordable housing by helping builders complete their financing.
Located in City Heights, The Teralta transformed a historic 1948 landmark into 72 affordable homes for families. A development from Wakeland Housing and Price Philanthropies Foundation, the grand opening for this unique mixed-use project was held on April 15.
“City Heights is a community that has always spoken up about what it needs, and this project reflects that,” said Mayor Todd Gloria. “Neighbors asked for more homes for families, especially larger households, and today that’s becoming a reality at The Teralta. Further, this development preserves the historic Superior Furniture Co. façade—honoring the neighborhood’s history while creating new opportunities for families today. This is what it looks like when we work together to build more homes where people need them.”
The $71 million development, located at El Cajon Boulevard and Fairmount Avenue, will serve households earning between 30% and 60% of the area median income (AMI). Those in that range are considered most at risk of experiencing homelessness. Rents range from approximately $844 to $2,698, depending on unit size and income.
Forty-five of the homes are three- and four-bedroom units, helping to address the shortage of housing options for large and multigenerational families.
“The Teralta is about more than housing. It’s about making sure working families in City Heights have a real chance to stay in the community they love,” said District 9 Councilmember Sean Elo-Rivera. “This development honors the history of the neighborhood, creates affordable homes for families who need them most, and supports local businesses that have long served this community. At a time when too many San Diegans are being priced out, The Teralta shows what’s possible when we invest in people and build a city that works for everyone.”
The San Diego Housing Commission (SDHC) provided 33 project-based vouchers for households earning 30% to 40% AMI. Project-based vouchers allow rental assistance to be attached to a specific unit and/or project instead of to an eligible assisted family.
The development also received $1.2 million from the Bridge to Home program and benefited from a $5.25 million California Department of Housing and Community Development Infill Infrastructure Grant.
The Teralta features the distinctive façade of the former Superior Furniture Co. Building, and the City’s Heritage Preservation staff worked with the developer to ensure the design remained consistent with historic standards and preserved its unique historic character.
Amenities include a central community room with a kitchen and computer lab, a landscaped courtyard with play and barbecue areas, a third-floor roof deck for gatherings and events, on-site services and access to a subsidized public transit program. Two commercial spaces will be operated by community-serving businesses, contributing to neighborhood vitality and economic activity.
On April 14, Mayor Gloria, Community HousingWorks and other local leaders broke ground on the Serra Mesa Apartments. Located on Sandrock Road, where the former Serra Mesa Library once stood, it will provide 59 homes. This will include 56 one-bedroom homes and three two-bedroom homes. Half of these homes will be reserved for military veterans and include supportive services for veterans experiencing or at risk of homelessness.
“No one - especially those who have sacrificed to serve our country - should ever have to worry about having a safe place to call home,” said District 7 Councilmember Raul Campillo. “The site of this project sits next to military housing and the Department of Veterans Affairs, making it an ideal location for such critically-needed housing. I commend Community HousingWorks for its leadership in identifying and supporting those it serves with intention and care.”
The property will include 22 parking spaces, a lobby and community room spaces, a computer lab, laundry facilities, leasing offices, a case management and resident services area, bike parking and a second-story courtyard with seating and greenery.
In 2025, the City entered into a 65-year ground lease with Community HousingWorks to convert the vacant library site into 100% affordable housing. These homes will be restricted for 55 years to households earning between 30 and 60% AMI, with rents ranging between $850 to $1,700.
A ground lease means the City will retain ownership, but the developer will construct the housing and share revenue with the City. Once the lease expires, the developer will turn the improvements back over to the City.
Along with the ground lease, the City Council also approved a $4 million Bridge to Home loan for this project.
“These developments demonstrate the City’s continued commitment to delivering meaningful housing solutions for the residents who need them most,” said Economic Development Director Christina Bibler. “By partnering with trusted community organizations and leveraging tools like Bridge to Home, we are ensuring that families across San Diego have access to stable, affordable homes and the opportunity to thrive.”
The project is funded in part with HOME Investment Partnerships Program funds provided to the City by the U.S. Department of Housing and Urban Development and administered by the SDHC. SDHC also issued 30 Veterans Affairs Supportive Housing (VASH) vouchers, which help veterans cover rent to live in safe, stable and private housing.
Construction on the Serra Mesa Apartments is expected to take about 26 months.
Since the Mayor launched the Bridge to Home program in 2021, 561 affordable homes have been built, with 1,978 more under construction or in the process of financing.