Midway Rising project may not deliver 2,000 net-new affordable homes in San Diego

The Midway Rising project in San Diego may fall short of producing 2,000 net-new affordable housing units, a key goal city staff had sought from developers, Voice of San Diego reported.

After nearly four years of negotiations, the final deal heading to the City Council does not mandate that the development create new affordable housing independently. Instead, developers within a three-mile radius can pay Midway Rising to fulfill their affordable housing obligations, potentially including areas like Mission Hills, Bankers Hill, and Clairemont.

City staff expressed concern that this arrangement could jeopardize the project, as state housing officials might object if the development does not add net-new affordable units beyond what other projects require.

Christina Bibler, director of real estate and airport management for the city, said the city supports clarifying language in the agreement to ensure the 2,000 affordable units are net-new, aligning with City Council desires.

The proposed agreement states the developer will build 2,000 affordable units, which would make it California's largest affordable housing development. The deal includes milestones and minimums developers must meet before proceeding with profit-making construction, with the city receiving a new arena and infrastructure improvements as part of the exchange.