Father Joe's Villages breaks ground on East Village housing project

Father Joe's Villages broke ground on a 47 million dollar affordable housing development at 16th Street and Island Avenue in the East Village. The new eight-story building will feature 124 apartments consisting mostly of studios and one-bedrooms designed for households earning between 30 and 60 percent of the area median income.

The project marks the first time an affordable housing development in San Diego is being constructed using mass timber. Deacon Jim Vargas, president and CEO of Father Joe's Villages, said that the local homelessness crisis is fundamentally a housing crisis and building new units is the only way forward.

Jodi Rothery, CEO of Arete Development, said the decision to use mass timber shortened the construction timeline and lowered per-unit development costs from 530,000 dollars to 380,000 dollars. Prefabricated engineered wood panels allow simultaneous work to happen on-site and off-site while requiring fewer field workers in the field.

Financing for the complex includes a construction loan from California Bank and Trust, a permanent loan from Citibank, and tax credit equity from the investment bank Raymond James. Large philanthropic gifts from billionaire philanthropist Irwin Jacobs and the David C. Copley Foundation also helped complete the funding package.

Councilmember Stephen Whitburn, who represents the East Village district, said city programs helping 100 percent affordable housing projects move to the front of the line at the Department of Development Services made the development more competitive for state tax credits and grants.

The completed building will also offer a community room, on-site health and wellness services, and English language classes for residents. Construction on the complex is scheduled to wrap up by March 2028.