SD Unified to Take Next Step in Developing 1,500+ Units of Affordable Workforce Housing

District Estimated to Receive Nearly $504 Million in Lease Revenue Over 99 Years from Five Properties

Board of Education Approval Will Authorize District Staff to Negotiate with Selected Entities

SD Unified Seeks to Create Affordable Housing for 10% of Its Workforce Over Next Decade

SAN DIEGO (DECEMBER 5, 2025) -1,500 units of affordable housing is on the horizon for five San Diego Unified School District properties, and on Wednesday, December 10 the Board of Education will vote to authorize district staff to enter into negotiations with three different proposers who were selected out of 15 submissions reviewed by a cross functional committee of experts.

"We are ready to take the next step toward building affordable housing to support our educators," said Superintendent Fabi Bagula, Ph.D. San Diego Unified School District. "Our schools are at their best when the people who teach, support, and care for our students can also call this community home. Affordable housing allows our workforce to live close to the students they serve, build meaningful connections with families, and fully participate in the life of our neighborhoods. Building affordable housing, and the district retaining ownership of the land to collect annual lease revenue, strengthens our schools and the surrounding San Diego neighborhoods."

Details about the proposal selected for the five properties are as follows:

1. Location: Eugene Brucker Education Center - 4100 Normal Street, San Diego 92103

• Proposal Selected:Affirmed Housing Group
• Unit Details:943 units of affordable workforce housing
• Financial Benefit to San Diego Unified:Estimated $250,000 annually for each of the first 3 years of 4 total phases, escalating at 2.50% per year. Total ground rent revenue is estimated at $296,000,000 over the proposed 99-year term of the agreement. No District funds required.
• Other Benefits: Permanent improvements for a drop-off and pick-up parking area that supports Birney Elementary School, and construct improvements to preserve Annex 1 and a preschool facility in Annex 2 at no cost to the District.

2. Location: Revere Center - 6735 Gifford Way, San Diego 92111

• Proposal Selected:Decro Corporation
• Unit Details:220 units of affordable workforce housing
• Financial Benefit to San Diego Unified:Estimated $318,728 escalating at 2.50% per year. Total ground rent revenue is estimated at $134,000,000 over the proposed 99-year term of the agreement. No District funds required.
• Other Benefits:Construction of a 3,585 square-foot childcare center with an outdoor play area for District use at no cost to the District.

3. Location: Fremont/Ballard Center - 2375 Congress Street, San Diego 92110

• Proposal Selected:Bridge Housing Corporation
• Unit Details: 140 units of affordable workforce housing
• Financial Benefit to San Diego Unified:$1,000,000 in prepaid rent for 30 years, then $50,000 annually for years 31-95, escalating at 3.0% per year. Total ground rent revenue is estimated at $10,700,000 over the proposed 95-year term of the agreement. No District funds required.
• Other Benefits:Construct improvements within the existing Harold J. Ballard Parent Center to provide a $6,500 square foot facility for District exclusive use.

4. Location: Instructional Media Center - 2441 Cardinal Lane, San Diego 92123

• Proposal Selected:Decro Corporation
• Unit Details:107 units of affordable workforce housing
• Financial Benefit to San Diego Unified:Estimated $123,029 in annual ground rent revenue, escalating at 2.50% per year. Total ground rent revenue is estimated at $51,789,050 over the proposed 99-year term of the agreement. No District funds required.

5. Location: Commercial Street - 2101 Commercial Street, San Diego 92113

• Proposal Selected:Decro Corporation
• Unit Details:87 units of affordable workforce housing
• Financial Benefit to San Diego Unified: Estimated $26,136, escalating at 2.50% per year. Total ground revenue is estimated at $11,003,731 over the proposed 99-year term of the agreement. No District funds required.
• Other Benefits:Construct a 4,800 square foot childcare facility with 2,120 square foot secure outdoor play area for District use.

San Diego Unified anticipates receiving an estimated $504 million in revenue over 99 years from the five properties if the agreements are finalized as outlined in the proposals.

If an agreement during negotiations with any single proposer cannot be reached, the District has the ability to approach the second highest scored proposer to initiate negotiations.

"This has been a thoughtful and transparent process guided by community input and an impartial evaluation committee. The proposals selected rose to the level of what our educators, support staff, and community deserve, and they mark an important step toward creating affordable homes for the people who help our schools thrive," said Lee Dulgerof, Senior Executive Director, Facilities Planning & Construction, San Diego Unified School District.

The Request for Proposal Evaluation Committee was composed of District staff from Real Estate, Finances, Physical Plant Operations, Facilities Planning and Construction, Custodial Services, a Paraeducator, a Classroom teacher, a community member and a San Diego real estate professional. Additionally, all proposals were reviewed by LeSar Development Consultants and Keyser Marston Associates for financial viability and evaluation on how the proposed projects met the affordability criteria outlined in the RFP.

In March, the San Diego Unified Board of Education voted to allow District staff to develop and request proposals for the five properties, and seek bids (Link to March Press Conference Video).

The District's effort to develop five of its own parcels into more than 1,500 affordable workforce housing units nearly doubles the nine educator housing developments that combined for 887 units that have been built (since 2002) or will be (by 2027) across the state of California and are featured in a report by the Center for Cities + Schools at UC Berkeley and cityLAB-UCLA, in partnership with the California School Boards Association(CSBA).

To read more about the proposals, check out the Board of Education agenda at SanDiegoUnified.org. The San Diego Unified Board of Education meeting begins at 5:00 p.m. on Wednesday, December 10 2025.