By Dave Schwab

New development offers a ‘step up’ to those in need

The recent opening of Atmosphere, a 12-story, 205-unit affordable housing project in Downtown, was a small step for San Diego. Hopefully, it will turn out to be a giant leap for the homeless — and the city — with regard to helping alleviate its affordable-housing crunch.

The new high-rise, located in the Cortez Hill neighborhood, is making affordable rent a reality for hundreds of San Diegans in need – including those who’ve experienced homelessness.

On May 31, Wakeland Housing and Development Corporation held the grand opening ceremony for the Atmosphere complex, located at 1453-1457 Fourth Ave., with monthly rents ranging from $525 to $1,250.

While 154 of those affordable homes are designed for qualifying individuals and families earning $17,000 to $48,000 per year, 51 are permanent supportive housing apartments designed specifically for people who have recently been homeless — including individuals with mental disabilities. These safe, secure homes include wrap-around resident services that promote stability and allow them to thrive.

At the high-rise’s dedication, new Atmosphere tenant Vikki Lozano, speaking for herself and her husband Ted, talked about the journey they took to becoming tenants, which included being homeless for a period time.

“Until about 10 years ago we had a good life, working hard to build up a chain of four interior design stores, a nice house and enough money to take care of our family,” Lozano said. “But when the economy dropped in 2008 we lost everything — the home, the business, and eventually, our sense of hope for our future.

“I can’t put into words how hard it was to go through all of that … the stress of losing everything we had took a great toll on both of us,” Lozano continued. “Ted developed Parkinsons. I ended up on disability with a heart condition.”

Things are now looking up for the couple, who have now been residents of Atmosphere since April 1,

“It has been a life saver for us,” Lozano said. “Living here, we can finally breathe again. The first day I went down to the leasing office and paid rent, I felt so good; like, I’m on top of my life again — instead of my life being on top of me. Now, I have hope that things will get better for us — finally.”

Atmosphere is Wakeland’s largest development so far, as well as its most unique, according to Wakeland’s president/CEO Ken Sauder.

“Atmosphere is really special because the homes here serve the broad spectrum of people who need affordable homes,” Sauder said. “In particular, Wakeland is gratified that Atmosphere addresses San Diego’s growing need for permanent supportive housing and will help some of our most vulnerable neighbors find stability.”

Sauder said the key to making Atmosphere a reality was in “… being able to put together the financing to make the rents affordable.”

He characterized the property that became Atmosphere as a “Failed condo project left to become a big hole in the ground.”

Noting the need to development more affordable housing options are always needed, the Wakeland CEO added, “The real issue with affordable housing is you need to find a way to ‘buy down rents’ so people can afford it.”

“Atmosphere is an outstanding example of the type of partnership development that is needed to address San Diego’s shortage of affordable housing for low-income families and homeless San Diegans,” said San Diego Housing Commission board chairman Frank Urtasun. “The SDHC’s commitment of 51 federal housing vouchers to provide rental assistance for homeless San Diegans here at Atmosphere is an important part of ‘Housing First — San Diego,’ our homelessness action plan.”

The $79.3 million Atmosphere development was completed on time and on budget. Financing drew on a unique mix of sources including both 9 percent and 4 percent state tax credits, state infill funding, vouchers from the San Diego Housing Commission and former redevelopment funds from Civic San Diego, which has worked for many years with Wakeland to bring the Atmosphere community to life.

“Civic San Diego is proud to be a funding partner in the Atmosphere project,” said Reese A. Jarrett, CivicSD’s president. “This project is a testament of the city’s commitment to continue the development of affordable housing projects in this post-redevelopment era and is a prime example of what can happen through public-private partnerships.”

Elaine Camuso, Wakeland’s communications director, said there are many levels of verification and qualification that perspective tenants must meet to be approved for an affordable housing development. She added that tenant selection and leasing must comply with all rules and regulations for fair housing.

“For Atmosphere, Wakeland is working with FPI Management Inc., which is leading the lease up process and providing on-site property management for the building,” Camuso said, adding that FPI began accepting pre-applications for the property in September 2016.

“Pre-applications were put in a pool and applicants were randomly selected to begin the tenant qualification process in early October,” she said. “This process includes income and asset verification as well as background and credit checks to ensure the candidate meets the property’s regulatory criteria.”

Camuso said the Atmosphere community completed its construction March 31 and tenants began moving in the next day.

“We will be completely leased up by mid-summer, with a current waiting list of more than 700 people,” she said.

Atmosphere was also built to ensure longevity. With 205 units, it could potentially provide affordable homes to more than 10,000 San Diegans over its expected 55-year life span, as residents get back on their feet and move out, making room for other neighbors in need.

According to the 2017 San Diego homeless Point-in-Time count, there are currently 9,116 people experiencing homelessness in San Diego County, up 5 percent from last year. In the Cortez neighborhood near the Atmosphere complex, those numbers are rising even faster, with an increase of 27 percent since last year.

For more information about Atmosphere and other Wakefield properties, their vacancies or waitlists, visit wakelandhdc.com.

— Dave Schwab can be reached at [email protected].