An all-affordable housing development proposed for South El Camino Real in Oceanside has been approved for up to $45 million in construction money from tax-exempt state bonds.
The 111 rental apartments will be built on vacant property a few blocks north of state Route 78 along the eastern side of South El Camino Real near a shopping center anchored by a Target and a WinCo Foods store.
The California Municipal Financing Authority will issue the bonds with no financial obligation to Oceanside, although the transaction requires the Oceanside City Councils authorization, which was granted unanimously Wednesday.
Earlier this year, the City Council approved a construction loan of up to $6 million to the projects developer, Mirka Investments. Most of the loan money is from in-lieu affordable housing fees paid by developers, and the rest is from state and federal grants the city has received.
Total construction costs for the project are estimated at $56 million or about $500,000 per unit, according to a city staff report.
The borrower has secured all financing for the project and is ready to proceed with construction, the report states.
Mayor Esther Sanchez said she like the proposed design and encouraged the developer to keep the setbacks and landscaping shown in preliminary drawings and to include easy access to nearby stores and restaurants.
My concern is that we do as much as we can to ensure that it feels like a walkable community here, Sanchez said.
Jesus Suarez, a vice president of development for Mirka, said one of the projects advantages is its location close to public transit and other resources.
Well do our best to address these issues, Suarez said. Our goal is to keep it close to our preliminary design.
The construction still needs things such as design review and permits from city administrators, but no further approval is needed from the City Council. State law allows some city building requirements related to parking, building height, setbacks and more to be waived for projects such as Mirkas that are intended to address the regions housing shortage.
The complex will have a mix of two- and three-bedroom apartments for households with income levels from extremely low to low income.
San Diego Countys area median income for 2024 was $119,500. To qualify for low-income housing, a family of four would have to make less than 80% of the area median income, or less than $121,250. For extremely low income, the level is 30% or $45,450 for a family of four.
San Diego-based Mirka also is building a 43-apartment affordable development, South River Village, on North River Road in Oceanside. That project will satisfy the affordable housing requirements for the nearby yet-to-be constructed North River Farms residential community.
Other Mirka projects in the county include the 19-unit La Costa Towne Square in Carlsbad, 126 apartments at The Ivey in Escondido, and affordable residential developments in Kearny Mesa, San Ysidro, and San Diego.