In a region where soaring home prices outpace everyday incomes, San Diego County welcomes a promising turn: nearly 1,000 new affordable housing units are on the horizon. Backed by a $14 million push from California’s REAP 2.0 program, this initiative marks a strategic move to ease the housing burden for working families, veterans, seniors, and immigrants. Through a careful alliance of the San Diego Foundation and SANDAG, the effort blends state climate goals with urgent housing needs—offering not just shelter, but a glimmer of hope in a squeezed market.

STORY HIGHLIGHTS

• $14 million in state funding secured under REAP 2.0

• 10 affordable housing projects selected across San Diego County

• 966 new units to be developed, primarily by 2027

• Housing to serve low- and middle-income families, veterans, seniors, refugees, immigrants, and single women

• Home prices in San Diego up 42% since 2020

• Over 134,000 affordable units still needed, according to estimates

As San Diego County grapples with the relentless pressure of a housing market that continues to price out working families, a much-needed lifeline has emerged in the form of nearly 1,000 new affordable housing units. Thanks to a strategic $14 million boost from the State of California, a fresh round of development is set to ease the region’s deepening housing crisis.

This major funding initiative was jointly announced last week by the San Diego Foundation (SDF) and the San Diego Association of Governments (SANDAG). The funds are being distributed through the state’s Regional Early Action Planning (REAP 2.0) program—an initiative designed to support local governments in aligning their housing growth with California’s ambitious housing and climate action goals.

While the number—966—might not seem overwhelming when set against the backdrop of the region’s growing population and soaring housing costs, officials involved in the process view it as a meaningful start. In a competitive real estate environment where affordability is slipping further out of reach, each new unit carries weight.

“In San Diego, we’re seeing our teachers, nurses, firefighters and essential workers—the very people who ensure our neighborhoods remain safe and vibrant—face enormous challenges in finding affordable housing,” said Jim Howell, chief financial officer of the San Diego Foundation.

He added that the new REAP 2.0 funding would help accelerate innovative solutions:
“The REAP 2.0 funding allows us to accelerate innovative housing solutions to address our region’s most pressing housing needs while advancing our climate commitments.”

The 10 selected housing projects—dispersed across the county—are scheduled to roll out between December 2026 and June 2030, with over two-thirds of the units expected to be available as early as 2027. The diversity of the populations these projects aim to serve—ranging from low-income families and veterans to seniors, refugees, and single women—demonstrates a wide-reaching commitment to inclusion and community resilience.

From 2020 to the present, home prices in San Diego County have surged by 42%, according to SDF data. That increase has placed additional strain on renters and prospective homeowners alike. A growing number of residents—more than one-third, by some estimates—now allocate over 30% of their monthly income solely to housing. For many, that leaves little room for other essentials.

Lesa Heebner, SANDAG chair and mayor of Solana Beach, underlined the importance of the partnership:
“This partnership between SANDAG and San Diego Foundation will facilitate much-needed housing solutions across our region.”

She emphasized the practical outcome of this investment:
“This funding, provided by the State of California, will give individuals and families more opportunities to find affordable places to live and build their futures, while helping meet regional and state housing goals.”

The distribution process was anything but arbitrary. SDF was selected by SANDAG to oversee the management of the REAP 2.0 funding through a newly formed regional housing trust fund. A total of 24 project proposals were reviewed, with 10 selected through a competitive evaluation. The funding awards comprise six grants totaling $8 million, along with four low-interest loans worth $6 million.

Among the awarded projects is Casa Familiar, a long-standing community-based organization in San Ysidro. Their project stands out for its commitment not only to affordable housing but also to climate resilience and community empowerment. This development will be resident-led and built with a vision of long-term environmental sustainability.

Lisa Cuestas, CEO of Casa Familiar, welcomed the grant with a broader lens:
“This grant award represents more than financial support—it is a commitment to climate justice, community empowerment and equitable development at the border.”

She added:
“Together, we are not just building housing—we are building a just, climate-resilient future for San Ysidro.”

For the San Diego Foundation, this announcement represents a continuation of its larger mission. Back in 2022, SDF launched the San Diego Housing Fund, which set out to enable the construction of 1,000 new homes annually for a decade. That fund is already supporting approximately $1 billion in new workforce housing projects throughout the county.

While these 966 new units won’t fully solve the affordable housing shortage—San Diego Housing Federation places the need at over 134,000 additional affordable units—they serve as a concrete step forward in an otherwise uphill battle.

Those interested in further information—including detailed maps, architectural renderings, and community impact statements—can access more on the San Diego Foundation’s official website.

As San Diego County confronts a relentless housing crisis, the infusion of $14 million in state funds through the REAP 2.0 program offers a timely and targeted solution. With nearly 1,000 affordable units set to rise across the region, this initiative stands as a calculated step toward balancing growth, equity, and sustainability. While it may not resolve the broader housing shortage overnight, the collaboration between state and local agencies signals a renewed commitment to turning policy into progress—and bringing real roofs to those who need them most.

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