Daily Business Report-May 24, 2017

San Diego County Renters in Crisis

New report shows depth and impact of housing shortfall

The California Housing Partnership released the final installment of its 2017 Housing Needs Assessment series on Monday, describing the affordable housing crisis facing lower-income renters in five Southern California counties: San Diego, Orange, Los Angeles, Riverside, and San Bernardino.
Here are key findings for San Diego County:

• Cuts in federal and state funding, including elimination of state redevelopment, have reduced investment in affordable housing production and preservation in San Diego County by nearly $124 million annually since 2008, a 69 percent reduction.
• Median rent in San Diego County has increased 36 percent since 2000 while median renter household income has increased only 4 percent, when adjusted for inflation.
• Renters need to earn more than 3 times local minimum wage to a ord the median asking rent of $1,940 in San Diego County.
• San Diego County’s lowest-income renters spend 69 percent of income on rent, leaving little left for food, transportation, health expenses, and other needs.
• When housing costs are considered, San Diego County’s poverty rate rises from 13.9 percent to 20.8 percent.
• San Diego County needs 142,052 more a ordable rental homes to meet the needs of its lowest-income renters.

Policy Solutions Recommended by the San Diego Housing Federation:

• Adopt local revenue sources to leverage state and federal resources to finance the construction and preservation of affordable homes, similar to those recently passed in other California jurisdictions.
• Maximize the use of public lands for affordable housing and require affordable housing as a component of development on public lands located near transit.
• Enact local programs to incentivize the development of affordable homes as a part of new development, including the City of San Diego’s Affordable Homes Density Bonus Program.
• Fully implement inclusionary ordinances and related in-lieu fees, commercial linkage fees, and SRO replacement ordinances.
• Make San Diego more competitive for state Cap-and-Trade funds by including affordable housing in all local TOD (transit-oriented development) policies, including Climate Action Plans and SANDAG’s Smart Growth Plan.
• Identify local resources that can be matched with state No Place Like Home funds to create permanent supportive housing for individuals and families experiencing homelessness.

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San Diego Gains 45 New Affordable Apartments

Forty-five new affordable apartments have been added to San Diego’s Encanto neighborhood as a result of collaborative efforts of Chelsea Investment Corp. and Civic San Diego.

Located near public transit facilities at 5003 Imperial Avenue in San Diego’s Fourth Council District, Ouchi Courtyards — built for $20.4 million — is a mixed-use complex comprised of 45 housing units, 5,000 square feet for retail use, and community space. The residential mix includes 30 two-bedroom and 15 three-bedroom dwelling units, with seven apartments set aside for households that include a member with a developmental disability and one unit designated for an onsite manager.

Ouchi Courtyards is the second project in the Fourth District to provide units set aside for the developmentally disabled. Councilwoman Myrtle Cole acknowledged the efforts of Jim Schmid, CEO of Chelsea Investment Corp.

Apartments at Ouchi Courtyards are affordable to households with income at 30-60 percent of San Diego County’s Area Median Income (AMI). Rents range from $462 to $1,079, representing up to a 66 percent discount from market rate rents in the area.

Financing was provided in part by a $5.4 million loan from the city of San Diego and Civic San Diego, along with tax credit equity and developer provided funding for a total project cost of $20.4 million.

amenities at Ouchi Courtyards include a community room, computer lab, laundry facilities, playground and barbecues. A sizable plot for a resident community garden was installed to honor the legacy of the property’s former owners, Ouchi Nursery. This locally owned business was founded in 1946 and operated on the site from 1961 to 2007.

Move-ins are underway at Ouchi Courtyards, where 1,600 families are currently on the waiting list.

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Port of San Diego to Install Interactive

Kiosks Along the Waterfront in 2018

The Port of San Diego has initiated an Interactive Kiosk Program with the goal of installing approximately 30 informational kiosks on the San Diego waterfront in 2018.
The Board of Port Commissioners selected IKE Smart City to fabricate, install, operate and maintain a portfolio of Interactive Kiosks from a pool of competitive proposals, and directed staff to exclusively negotiate with the company for a 10-year agreement.

“This is a great example of how our Port is working to make the waterfront an exciting and dynamic place to visit,” said Port Chairman Robert “Dukie” Valderrama. “Interactive Kiosks along the San Diego waterfront will encourage exploration and discovery of attractions, special events, restaurants and entertainment; while also serving as meeting points.”
The proposed Interactive Kiosks will have touch screens that will offer an interactive experience to help people get directions and public transit information, explore restaurants and attractions and educate them about the port. The plan is to install them in what is called the Centre City/Embarcadero area, which is the Embarcadero along Harbor Drive, between Laurel Street and the Tenth Avenue Marine Terminal in San Diego.

To reach a broad audience, the Interactive Kiosks will be able to display information in multiple languages. They will have an adjustable screen for people with disabilities.
Designed to reflect the sailing culture of San Diego, the kiosks are shaped in the form of a sail.

There is no public investment required for this project, the port collaborated with an outside agency to create the design, and IKE Smart City will pay for fabrication of the Interactive Kiosks. The production, installation, operation, and maintenance will be privately financed through revenue generated by advertising and sponsorships.

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Renovation Work Nears Finish on

Luxury La Jolla Residences

Restoration and renovation work is nearing completion on Muse La Jolla, a new luxury residential community located at 1020 Prospect Street in La Jolla. Most of the 16 residences, which range in size from 996 to 3,255 square feet, will be ready to close within 60 days. Two units have already been sold.

The four-story, concrete building includes one-, two- and three-bedroom floor plans. The four penthouse units include private rooftop terraces with direct access. The first-floor units include private ocean-view patios with just over 1,000 square feet of additional living space. Released home prices range from $2.7 million to $10.12 million.

The project includes 24-hour concierge and valet service as well as three-car garages within a controlled-access parking structure.

The developer for Muse La Jolla is a joint venture whose managing member is an affiliate of San Diego- based real estate developer Hammer Ventures. The building was originally designed by modernist architects Ladd & Kelsey in the 1960s.

One model home is currently open, with additional units to be unveiled in the coming weeks as construction and interior staging is completed.

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Student-Run Free Clinic Project

Honored by American Psychiatric Association

The Student-Run Free Clinic Project at UC San Diego has been recognized by the American Psychiatric Association for excellence in caring for the community. For two decades, the project has helped people of all ages and circumstances access high-quality health care, regardless of their ability to pay. The project assists community members with a range of critical health services, including psychiatric care.

“The UC San Diego Student-Run Free Clinic Project provides much needed care to many,” said Maria A. Oquendo, president of the American Psychiatric Association. “The APA Gives Back program is a way for the APA to show our support for the local community.”

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U.S. Court of Appeals says Hobby Drone Owners

No Longer Have to Register UAS with the FAA

AUVSI News

The U.S. Court of Appeals has ruled that hobbyist unmanned aircraft owners will no longer have to register their unmanned systems with the Federal Aviation Administration, potentially reversing a practice that has been in place for more than a year.
A three-judge panel determined that a final rule issued by the FAA in December 2015 requiring UAS owners to register their aircraft like manned aircraft directly contradicted another rule that was already in place from 2012.
The rule that was in place from 2012 comes from section 336 of the FAA Modernization and Reform Act, which states that the FAA “may not promulgate any rule or regulation regarding a model aircraft.”
“A UAS registration system is important to promote accountability and responsibility by users of the national airspace, and helps create a culture of safety that deters careless and reckless behavior,” said AUVSI President and CEO Brian Wynne in response to the ruling. “We plan to work with Congress on a legislative solution that will ensure continued accountability across the entire aviation community, both manned and unmanned.”
AUVSI is the Association for Unmanned Vehicle Systems International.

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Personnel Announcements

Jason Ballow Promoted to VP of Development

Jason Ballow has been promoted to vice president of development for the Southern California Division of Trammell Crow Residential. He will be responsible for the entitlement, development and construction of multifamily properties throughout Orange, Riverside and San Diego counties. Currently, there are eight projects under way or planned with a total of 2,300 units.

Ballow has been a development associate at the firm since 2012, responsible for project management of four Class A apartment communities, totaling 1,200 units. He also led the disposition of two apartment communities, totaling nearly 700 units, for $187 million.

Ballow previously served as chief financial officer of Anderson Drilling, a deep foundation and earth retention contractor. Earlier, he was the vice president of finance for CityMark Development of San Diego and the director of finance for D.R. Horton, as well as the project finance manager for The Corky McMillin Companies. He started his career at KPMG in the firm’s audit practice.

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Catharine Hughes Promoted at Ware Malcomb

Catharine Hughes has been promoted to director, interior architecture and design in Ware Malcomb’s Downtown San Diego office. In this role, Hughes will continue to manage and grow the office. Hughes joined Ware Malcomb five years ago as studio manager, interior architecture and design. With 25+ years of experience in the San Diego market, Hughes has been instrumental in helping Ware Malcomb gain new market share, diversify its areas of expertise, and secure several new high profile client accounts.

Hughes holds a bachelor’s in interior design from California State University, Long Beach. She is active in a number of industry organizations including the National Association of Industrial and Office Properties (NAIOP), Building Owners and Managers Association (BOMA), and Commercial Real Estate Women (CREW). She is currently serving as the CREW 2017 San Diego chapter president.