SAN DIEGO (KGTV) — The San Diego Housing Commission announced Wednesday the city has received a $45 million grant from the state to continue its mission of creating more affordable housing in the area.

According to the press release, the money is coming from the state’s Catalytic Infill Infrastructure Grant. The commission estimates the funds will help build more than 1,180 homes for people with low or middle incomes.

Mayor Todd Gloria says this grant is another step in the right direction for remedying San Diego’s housing crisis.

“We will put this funding to work as quickly as possible to build out the community infrastructure necessary to support the creation of nearly 1,200 new homes for San Diegans looking for an affordable place to live,” Gloria says.

SDHC applied for the money on behalf of the city, and the state awarded the maximum amount allocated for large cities.

The state program specifically targets infill developments, which are renovations to existing buildings in urban areas to make them livable. Additionally, the program fills gaps in financing for projects like this.

The projects that will see the money include those using surplus state land, building on underused land nearby an MTS trolley stop and utilizing a local community land trust.

SDHC’s Board of Commissioners allowed the housing commission to apply for the grants back in April.

“Everyone in San Diego deserves a place to call home that they can afford,” SDHC Chair of the Board Eugene Mitchell said.

The grant will fund site preparation for construction, which includes demolition, excavation, grading, soil stabilization, erosion control, weed control and dewatering. The California Department of Housing and Community Development oversees the grant program.

More improvements include concrete paving and traffic signals. The money will also go towards new residential parking for the housing developments. New pathways, bus shelters and bike facilities will also be created with the funds.

SDHC’s press release says these proposed developments will be supported through the grant:

• Front Street (92101 – Council District 3)
  • Two 40-story towers on three properties in downtown SanDiego
    • 345 West Ash St.
    • 1301 State St.
    • 1350 West Front St.
  • 1,007 total units
  • Developer: The Michaels Organization
• Palm City Transit Village and Transforming & Advancing South County Transit Communities (TASC) [92173 – South San Diego]
  • Three sites
    • 317 Cottonwood Dr. and 210 – 240 S. Vista Ave.
    • 125 Cypress Dr.
    • 2300 Palm Ave.
  • 586 total units, of which three units will be unrestricted managers’ units
  • Affordable housing units
    • Palm City Transit Village: 483 rental housing units
      • Affordable for households with 30% to 80% of AMI
    • Avanzado: 100 rental housing units that convert to ownership at the end of the low-income housing tax credit compliance period (15 years)
      • Affordable for households with 30% to 80% of AMI
  • Developers: National Community Renaissance (National CORE) and Casa Familiar