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FY 2021 Popular Annual Financial Report San Diego Housing Commission 1
San Diego Housing Commission
A Component Unit of the City of San Diego
Popular Annual Financial Report
Fiscal Year Ended June 30, 2021
FY 2021 Popular Annual Financial Report San Diego Housing Commission 2
Who We Are
The San Diego Housing Commission’s (SDHC) Popular
Annual Financial Report (PAFR) for the Fiscal Year that
ended on June 30, 2021, was prepared by the SDHC
Financial Services Department to provide readers an
easy‐to‐understand summary of SDHC’s financial
activities.
This report provides a condensed presentation of
SDHC’s significant financial highlights for Fiscal Year
2021 (July 1, 2020 – June 30, 2021). The
Comprehensive Annual Financial Report (Annual
Report) is the source of the data for this summary
report. The Annual Report is a more detailed financial
report audited by CohnReznick, LLP and fully
conforms to Generally Accepted Accounting
Principles (GAAP). The Annual Report is available on
SDHC’s website at:
www.sdhc.org/about‐us/budget‐finance
SDHC welcomes any questions or comments on any of
the information provided in this report. Requests for
additional information should be addressed to Tracey
McDermott, Senior Vice President of Financial
Services and Chief Financial Officer, San Diego
Housing Commission, 1122 Broadway, Suite 300, San
Diego, California 92101.
Housing Authority of the City of San Diego*
Council President Jennifer Campbell, District 2
Council President Pro Tem Stephen Whitburn, District 3
Joe LaCava, District 1
Monica Montgomery Steppe, District 4
Marni von Wilbert, District 5
Chris Cate, District 6
Raul Campillo, District 7
Vivian Moreno, District 8
Sean Elo‐Rivera, District 9
SDHC Board of Commissioners*
Chair of the Board Stefanie Benvenuto
Vice Chair Ryan Clumpner
Margaret Davis
Johanna Hester
Kellee Hubbard
Eugene “Mitch” Mitchell
SDHC President & CEO
Richard C. Gentry
Visit SDHC’s website: www.SDHC.org
* As of June 30, 2021
Table of Contents
Who We Are ........................................... 3
SDHC Achievements ................................. 6
Chief Financial Officer’s Message ............ 7
Financial Summary .................................. 9
Investments ............................................. 11
Capital Assets .......................................... 12
Real Estate Portfolio ................................ 13
Housing Development Partners ................ 14
Addressing Homelessness ....................... 15
Moving to Work ...................................... 16
Demographics of Housing Choice Voucher
(HCV) Program ......................................... 17
SDHC Headquarters
FY 2021 Popular Annual Financial Report San Diego Housing Commission 3
Who We Are
SDHC is a public agency formed by local ordinance pursuant
to the provisions of applicable Housing Authority law of the
State of California. The organizational meeting of the SDHC
Board of Commissioners occurred on January 5, 1979, at
which Commissioners were sworn in and established a
regular meeting schedule and guidelines for conducting
business.
Governing Body and Strategic Guidance
SDHC is governed by the San Diego City Council, sitting as
the Housing Authority of the City of San Diego (Housing
Authority). SDHC President & CEO Richard C. Gentry is the
Executive Director of the Housing Authority.
The Housing Authority has final authority over SDHC’s budget and major policy decisions. Housing Authority
approval is required for amending the annual budget for amounts in excess of $500,000.
A seven‐member Board of Commissioners oversees SDHC’s operations and makes recommendations to the Housing
Authority. The Mayor appoints Commissioners, who are confirmed by the San Diego City Council.
The Board reviews proposed changes to housing policy, property acquisitions and other financial commitments. The
Board offers policy guidance to SDHC staff through its communications with the agency’s President & CEO.
SDHC Vision Everyone in the City of San Diego has a home they can afford.
SDHC Mission Statement The San Diego Housing Commission (SDHC) fosters social and economic stability
for vulnerable populations in the City of San Diego through quality affordable housing, opportunities for financial
self‐reliance and homelessness solutions.
Purpose Help individuals, families and the San Diego community thrive.
SDHC Strategic Plan Fiscal Years 2022- 2024
SDHC’s Strategic Plan for Fiscal Years (FY) 2022 ‐ 2024 serves as a roadmap for SDHC, guiding the agency’s decisions,
initiatives and day‐to‐day efforts for the next three years. At the same time, SDHC has the flexibility to adapt this
Strategic Plan as needed to address changing circumstances around the agency.
The SDHC Board of Commissioners approved this three‐year Strategic Plan on July 9, 2021.
The Plan includes five strategic priorities, which include metrics to monitor progress:
Increasing and preserving housing solutions
Helping families increase opportunities for self‐sufficiency and quality of life
Investing in our team
Advancing homelessness solutions – supporting the City of San Diego Community Action Plan on
Homelessness
Advocacy, Communication, Public Engagement
SDHC Board of Commissioners
FY 2021 Popular Annual Financial Report San Diego Housing Commission 4
Who We Are
SDHC obtained input from City Councilmembers, SDHC Board members, a variety of other critical community
partners and SDHC staff. The Strategic Plan provides the vision, mission, purpose, core values and strategic priorities
for the agency for the years to come. The COVID‐19 pandemic affected the timing for the creation and completion
of the Strategic Plan, but it also reinforced the importance of the bold, broader new vision for SDHC: Everyone in
the City of San Diego has a home they can afford.
The Strategic Plan also reflects SDHC’s commitment to equity and inclusivity. The following statement is an
important part of this guiding document for the agency:
At SDHC, we are about people. SDHC embraces diverse approaches and points of view to improve our programs,
projects and policies.
We believe in delivering programs and services in innovative and inclusive ways
We are committed to advancing equity and inclusion both internally and externally.
SDHC Fiscal Year 2021 Accomplishments
The principles of SDHC’s previous Strategic Plan for 2016 – 2020 continued to guide SDHC during Fiscal Year 2021,
as the agency developed the new Strategic Plan.
1. Maximize resources through operational efficiencies and technological innovations
SDHC developed a system performance data dashboard in support of the foundational strategy “Implement a
Systems‐Level Approach to Homelessness Planning” that is part of the City of San Diego Community Action Plan on
Homelessness. SDHC staff worked on the development of this dashboard throughout Fiscal Year 2021. The
dashboard became available to the public on SDHC’s website, www.sdhc.org, in September 2021. Providing
information about the performance of homelessness programs as a system, compared with industry‐standard, best‐
practice metrics, is the goal of the dashboard.
In addition, during Fiscal Year 2021, SDHC created an online tool to provide property‐specific information for
households looking for affordable housing, as well as overview data about affordable housing for the public and
policymakers. This Affordable Housing Dashboard launched September 13, 2021, on SDHC’s website,
www.sdhc.org.
2. Increase the number of housing opportunities that serve low-income and homeless
individuals and families in the City of San Diego
Creating and Preserving Affordable Housing – In Fiscal Year 2021, 529 affordable units closed financing
(Affordable Housing Fund‐ and Bond‐ funded), for a total of 3,118 affordable units over the five years since the
inception of the 2016 Strategic Plan.
Property Renovation ‐ In Fiscal Year 2021, SDHC completed approximately $7.8 million in capital improvements
at 38 of the 150 affordable rental housing properties that it owns. These renovations were in continuation of SDHC’s
plan to address the capital replacement needs of its diverse Real Estate portfolio. The improvements included
plumbing upgrades, elevator modernization, foundation repairs, roofs, windows, cabinets and countertops,
appliances, flooring, exterior repairs and painting across the portfolio.
FY 2021 Popular Annual Financial Report San Diego Housing Commission 5
Who We Are
HOUSING FIRST - SAN DIEGO
As of June 30, 2021, SDHC’s homelessness action plan, HOUSING FIRST ‐ SAN DIEGO, which launched on November
12, 2014, had created more than 9,100 housing solutions in less than seven years for individuals and families at risk
of or experiencing homelessness in the City of San Diego, with an additional 608 housing units approved and pending
completion. HOUSING FIRST – SAN DIEGO consists of programs that provide a variety of housing interventions to
address the diverse housing and supportive services needs of San Diegans who are at risk of or experiencing
homelessness.
COVID‐19 Response: Operation Shelter to Home
In April 2020, a collaborative effort among the City of San Diego, SDHC, the Regional Task Force on Homelessness
(RTFH), County of San Diego, City shelter providers and other agencies launched Operation Shelter to Home (OSTH)
to mitigate the impact of COVID‐19 on people experiencing homelessness in San Diego. It included a temporary
emergency shelter at the San Diego Convention Center. Over the course of less than 12 months, 1,422 individuals
and 43 families secured permanent or longer‐term housing through Operation Shelter to Home.
3. Advocate for more effective affordable housing policies and resources
SDHC continues to maintain a careful watch on emerging issues or trends that could impact the families and
individuals the agency assists, and express positions based on SDHC’s expertise. For example, the Consolidated
Appropriations Bill of 2021, passed by Congress and signed into law in late December 2020, included important
changes to the Veterans Affairs Supportive Housing (VASH) voucher program that SDHC advocated throughout the
year. This legislation will help public housing authorities nationwide, including SDHC, to maximize use of VASH
vouchers to help veterans experiencing homelessness.
Oversight and Administration of Emergency Rental Assistance Programs
Throughout the COVID‐19 pandemic, SDHC has seamlessly continued to provide essential housing assistance to
thousands of families, seniors, veterans and San Diegans experiencing homelessness in the City of San Diego.
COVID‐19 Emergency Rental Assistance Program
In the first half of Fiscal Year 2021, SDHC administered the City of San Diego COVID‐19 Emergency Rental Assistance
Program (ERAP), which helped families with low income in the City of San Diego who experienced financial hardship
due to the COVID‐19 pandemic. ERAP provided one‐time payments of up to $4,000 per qualifying household to help
pay past‐due and/or upcoming rent to assist with preventing housing displacement. At the conclusion of ERAP, SDHC
had disbursed more than $13.7 million in federal funds, helping more than 3,700 low‐income households pay their
rent. Every qualifying household that applied for ERAP received assistance.
COVID‐19 Housing Stability Assistance Program
In the latter part of Fiscal Year 2021, SDHC began administering the City of San Diego COVID‐19 Housing Stability
Assistance Program (HSAP), which helps pay rent and utilities for households with low income that experience
financial hardship due to or during the COVID‐19 pandemic. HSAP was initially funded $42,333,563 (the City of San
Diego’s direct allocation from the U.S. Department of the Treasury under the federal Coronavirus Relief Fund.) SDHC
began making payments for qualifying applicants in late April 2021. HSAP has continued to receive additional federal
and state funding, and, through September 2021, SDHC has disbursed more than $99.6 million in assistance
payments to help more than 11,300 qualifying households.
FY 2021 Popular Annual Financial Report San Diego Housing Commission 6
SDHC Achievements
Established in 1979, SDHC is an award‐winning
public agency dedicated to creating and preserving
affordable housing within the City of San Diego.
Popular Annual Financial Reporting Awards
The Government Finance Officers Association of the
United States and Canada (GFOA) has given an Award
for Outstanding Achievement in Popular Annual
Financial Reporting to SDHC for its Popular Annual
Financial Report (PAFR) for the fiscal year that ended
on June 30, 2020. The Award for Outstanding
Achievement in Popular Annual Financial Reporting is
a prestigious national award recognizing
conformance with the highest standards for
preparation of state and local government popular
reports.
To receive an Award for Outstanding Achievement in
Popular Annual Financial Reporting, a government
unit must publish a Popular Annual Financial Report,
whose contents conform to program standards of
creativity, presentation, understandability and reader
appeal.
An Award for Outstanding Achievement in Popular
Annual Financial Reporting is valid for a period of one
year only. SDHC has received a Popular Award for the
last 11 consecutive years (fiscal years ended 2010‐
2020). SDHC believes this current report continues to
conform to the Popular Annual Financial Reporting
requirements, and SDHC is submitting it to GFOA.
The PAFR is available on SDHC’s website:
www.sdhc.org/about‐us/budget‐finance
Comprehensive Annual Financial Report Awards
SDHC’s Comprehensive Annual Financial Report
(Annual Report) for the fiscal years ended 2008‐2020,
from which information on pages 9‐10 has been
drawn, were awarded the Certificate of Achievement
for Excellence in Financial Reporting by the GFOA.
The Certificate of Achievement is the highest form of
recognition for excellence in state and local
government financial reporting.
To be awarded a Certificate of Achievement, a
government agency must publish an easily readable
and efficiently organized Annual Report, whose
contents conform to program standards. Such Annual
Report must satisfy both generally accepted
accounting principles and applicable legal
requirements.
A Certificate of Achievement is valid for a period of
one year only. SDHC believes its Annual Report
continues to conform to the Certificate of
Achievement program requirements, and SDHC will
be submitting its Annual Report for the Fiscal Year
2021 to the GFOA.
FY 2021 Popular Annual Financial Report San Diego Housing Commission 7
Chief Financial Officer's Message
The majority of SDHC's programs depend on federal financial assistance from HUD to continue operations. In fiscal
year 2021, SDHC received 83 percent of its revenue from HUD and the US Treasury, most of which was awarded to
SDHC for Moving to Work (MTW) initiatives and for COVID‐19 related assistance programs, respectively. SDHC's
budget and financial condition are greatly affected by the financial condition of the federal government and
Congress' annual appropriation to HUD.
HUD grants for housing programs and program administration funding may decrease due to the national economic
and political climate. As good stewards of the taxpayer's money, it is SDHC's responsibility to strive to do more with
less. Through a combination of expense reduction and the prudent utilization of available programmatic reserves,
SDHC was able to maintain a balanced budget in fiscal year 2021 and will have a balanced budget in fiscal year 2022.
Annually, SDHC submits an MTW Plan to HUD that describes initiatives to be implemented over the next fiscal year.
Following each year, SDHC issues an MTW Report that gives an accounting of activities put into action during the
fiscal year. HUD approved SDHC's 2021 MTW Plan on September 28, 2020. HUD's fiscal year runs from October to
September. SDHC’s fiscal year 2022 MTW Plan was submitted to HUD on April 7, 2021 and was approved on August
2, 2021. The plans can be viewed at http://www.sdhc.org/about‐us/plans‐policies/mtw‐annual‐plans/
In 2021, the financial impact of the COVID‐19 pandemic has continued to be felt both worldwide and in the United
States. While vaccines have become available to help reduce the adverse health effects of COVID‐19, throughout
the United States, businesses in all financial sectors continue to feel its negative impact as variants emerge and
threaten the resumption of business.
While SDHC cannot readily estimate the financial impact that the pandemic will have on its business operations,
SDHC does not believe that the Agency’s mission will be adversely impacted as it has received federal stimulus
funding to continue providing essential housing assistance to the thousands of families, seniors, veterans and San
Diegans experiencing homelessness in the City of San Diego.
Some of the local impacts of COVID‐19 are reflected in the local loss of jobs. According to a report issued by the
State of California Employment Development Department on August 21, 2021 the unemployment rate in San Diego
County was 6.9 percent in July 2021, down from a revised 7 percent in June 2021, and below the year‐ago estimate
Point‐in‐Time Count
January 23, 2020
FY 2021 Popular Annual Financial Report San Diego Housing Commission 8
Chief Financial Officer's Message
of 12.3 percent. This compares with an unadjusted unemployment rate of 7.9 percent for California and 5.7 percent
for the nation during the same period. https://www.labormarketinfo.edd.ca.gov/file/lfmonth/sand$pds.pdf
The high cost of living and affordability of homes continues to be a challenge in San Diego and contributes to the
homelessness crisis. The San Diego Point‐in‐Time Count, known as #We All Count was conducted on January 2021
this year for sheltered San Diegans only. Due to health and safety concerns related to the pandemic, the count of
unsheltered individuals was not completed. This year’s count of sheltered homeless persons identified 4,143
sheltered in San Diego. This number is slightly up from last year’s count of 3,667. U.S. Department of Housing and
Urban Development (HUD) requires that cities receiving federal funding to combat homelessness complete the
Point‐In‐Time Count each year and this is coordinated by the Regional Task Force on Homelessness. Their report can
be found here: https://www.rtfhsd.org/wp‐content/uploads/2021‐PIT‐Report_final.pdf
SDHC continues to focus on its mission to foster social and economic stability for vulnerable populations in the City
of San Diego through quality affordable housing, opportunities for financial self‐reliance and homelessness
solutions.
Through the execution of SDHC’s 2022 budget of $604 million, SDHC will continue to demonstrate the prudent and
responsible management of its financial resources all with a high quality of service, while helping vulnerable San
Diegans acquire or maintain affordable housing, obtain or maintain financial self‐reliance, and provide access to
homelessness solutions.
Tracey McDermott
Senior Vice President and Chief Financial Officer
Blanca
Affordable rental housing resident
FY 2021 Popular Annual Financial Report San Diego Housing Commission 9
Financial Summary
Statement of Net Position
The abbreviated Statement of Net Position presented
in this report (in thousands) is a useful indicator of
SDHC’s financial position. In Fiscal Year 2021, SDHC’s
assets exceeded liabilities by $803.8 million, an
increase of 20 percent from Fiscal Year 2020.
Total assets increased by $163.5 million. The increase
in current and other assets is primarily attributed to an
increase in loans made (notes and mortgages
receivable) and associated accrued interest. In
addition, capital assets net of depreciation increased
$110.5 million primarily due to the acquisition of three
properties – Valley Vista, Kearny Vista and Hillcrest Inn
Apartments.
Total liabilities increased by $30.0 million, or 18
percent. This is primarily due to an increase in notes
payable related to the loans obtained to acquire the
Valley Vista and Kearny Vista hotel properties
mentioned above. This was offset by a decrease in
unearned revenue primarily related to the recognition
of the deferred gain from the sale of Mariner’s Village
of $32.1 million in fiscal year 2020.
SDHC’s total net position increased 20 percent, or
$133.5 million, in Fiscal Year 2021.
Net investment in capital assets increased $68.5
million to $167.4 million primarily related to the
purchase of the hotel properties previously
mentioned.
Unrestricted net position increased $59.1 million to
$411.6 million. Although these funds are defined as
unrestricted under the applicable accounting
standards, these funds are not necessarily indicative of
funds available for discretionary use.
Restricted net position increased $5.8 million to
$224.8 million primarily due to an increase in overall
notes receivable programmatic reserves.
Key Terms
Here are some definitions of accounting terms that will
assist you throughout the financial section of the PAFR
and Annual Reports:
Assets: What is owned by SDHC.
Liabilities: What SDHC owes.
Net position: The difference between SDHC’s assets and
liabilities. It is the net worth of SDHC.
Current and other assets: Cash, restricted cash and
equivalents, investments, prepaid items, and accounts
receivable.
Capital assets, net of depreciation: Land, building, building
improvements, equipment, construction in progress, and
depreciation.
Current liabilities: Accounts payable, accrued payroll,
compensated absences, notes payable, and unearned
income.
Notes payable and non‐current liabilities: Long‐term notes
payable obligations due in the future years.
Net investment in capital assets: Capital assets less
accumulated depreciation and any outstanding debt related
to acquiring these assets.
Restricted: Funds subject to various external restrictions.
Unrestricted: Balance of net position not included in net
investment in capital assets or restricted.
June 30, June 30, Change
2021 2020 %
ASSETS
Current and other assets 696,449$ 643,413$ 8%
Capital assets net of
depreciation 307,534 197,048 56%
Total assets 1,003,983$ 840,461$ 19%
LIABILITIES
Current liabilities 58,736$ 74,433$ ‐21%
Notes payable and non‐
current liabilities 141,438 95,682 48%
Total liabilities 200,174$ 170,115$ 18%
NET POSITION
Net investment in capital
assets 167,437$ 98,905$ 69%
Restricted 224,768 218,949 3%
Unrestricted 411,604 352,492 17%
Total net position 803,809 670,346 20%
Total liabilities and net
position 1,003,983$ 840,461$ 19%
FY 2021 Popular Annual Financial Report San Diego Housing Commission 10
Financial Summary
Statement of Revenue, Expenses and Change in Net
Position
The abbreviated Statement of Revenue, Expenses and
Change in Net Position (in thousands) accounts for all
of SDHC’s revenue and expenses and reports the
difference between the two as the change in net
position. The statement reflects the results of SDHC’s
operations over the year and can be used to determine
SDHC’s creditworthiness and its ability to successfully
recover its costs through grants, tenant charges, and
other income.
This year’s overall increase in net position of $133.5
million represents an increase of $114.6 million (607
percent), from the change in net position in the Fiscal
Year 2020 and is mainly due to an increase non‐
operating revenue (net) of $147.5 million, offset by an
increase in operating expenses of $70.8 million.
Additionally, the change in net position includes $33.2
million related to SDHC’s recognition of the gain on
transfer of properties to its discrete component unit,
Housing Development Partners (HDP).
Operating revenues increased by $6.0 million in Fiscal
Year 2021 primarily related to increase bond
administrative fees. Operating expenses increased by
$70.8 million in Fiscal Year 2021. This increase is
primarily due to an increase in housing assistance
payments of $61.8 million, including $34.9 million
related to the City of San Diego’s COVID‐19 Emergency
Rental Assistance Program and COVID‐19 Housing
Stability Assistance Program as well as $26.9 million
related to Section 8 Housing Choice Voucher and
Mainstream voucher programs.
Non‐operating income and expense (net) increased by
$147.5 million in Fiscal Year 2021 primarily due to an
increase in grant revenue of $151.2 million related to
MTW and other federal programs such as Community
Development Block Grant (CDBG), Emergency
Solutions Grant (ESG), CARES Act and the Coronavirus
Appropriations Act of December 2020.
Additional Key Terms
Operating Revenues: Dwelling rent, commercial rent,
land leases, management fees and other fees.
Non‐Operating Revenues: Grant revenues from state,
local and federal agencies and interest income.
Operating Expenses: Expenses related to operations,
grant expense and supportive services to assist SDHC
in performing its functions.
Change in Net Position: The total revenue earned less
total expenses. Additionally includes transfer of
property to component unit (if applicable).
June 30, June 30, Change
2021 2020 %
Operating revenues
Dwelling rental income 32,472$ 30,693$ 6%
Land lease and other
rental income 3,884 3,351 16%
Fee revenue 6,755 4,479 51%
Other revenue 8,398 6,960 21%
Total Operating revenues 51,509 45,483 13%
Operating expenses 350,597 279,796 25%
Deficit before depreciation
and other non‐operating
income and expenses (299,088) (234,313) 28%
Depreciation 9,470 8,132 16%
Deficit before other non‐
operating income
and expense (308,558) (242,445) 27%
Other non‐operating income
and expenses, net 408,857 261,314 56%
Income (loss) before 100,299 18,869 432%
capital transactions
Transfer of properties to
componet unit 33,164 ‐ 100%
Change in net position 133,463$ 18,869$ 607%
Net position:
Beginning of year 670,346 651,477 3%
End of year 803,809$ 670,346$ 20%
FY 2021 Popular Annual Financial Report San Diego Housing Commission 11
Investments
SDHC utilizes the services of an experienced financial advisor to aid in making investment decisions. The advisor
provides guidance on creating a diversified portfolio and a secure investment mix. The advisor's ongoing role is to
provide staff with sound investment opportunities that will maximize liquidity and yield without sacrificing principal
value and safety of the investment securities. The fair value of cash and investments on June 30, 2021, was $200.8
million, an increase of 17.6 percent from the previous year.
In accordance with California state statute and HUD regulations, SDHC has authorized the Chief Financial Officer, or
designee, to invest in obligations of the U.S. Treasury, U.S. Government agencies or other investments as outlined
in SDHC’s Investment Policy.
Bank balances are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. In accordance with
California Government Code, amounts over $250,000 are collateralized with government securities pledged by the
financial institution holding the securities in SDHC's name.
Investments in California's Local Agency Investment Fund (LAIF) and the San Diego County Investment Pool (SDCIP)
represent SDHC's equity in pooled investments. Other investments such as Certificates of Deposits, bonds,
government agency securities and demand deposit accounts are kept with commercial banking institutions.
Investment Risk Factors
The foremost objective of SDHC’s Investment Policy is
the safety of principal, which is achieved by mitigating
credit risk and interest rate risk. These risks, along with
custodial risk, concentration of credit risk and market
risk, all affect the value of investments to a varying
degree. Equity and debt securities respond to such
factors as economic conditions, individual company
earnings performance and market liquidity, while fixed
income securities are particularly sensitive to credit risk
and changes in interest rates.
SDHC’s Quarterly Investment Report details are provided on a quarterly basis as an informational report to the SDHC
Board. The reports are posted on SDHC’s website, https://www.sdhc.org/governance‐legislative‐affairs/sdhc‐
board‐of‐commissioners/meetings/
The Board‐appointed Investment
Committee meets twice each year
to review the investment results for
the portfolio.
FY 2021 Popular Annual Financial Report San Diego Housing Commission 12
Capital Assets
At the end of Fiscal Year 2021, SDHC had approximately $307.5 million (net of depreciation) invested in capital
assets. The majority of SDHC’s investment in capital assets is composed of ownership of land, affordable housing
stock and the Smart Corner office building.
In Fiscal Year 2021, SDHC acquired Hillcrest Inn Apartments, Valley Vista and Kearny Vista resulting in additions to
land and building of $32.0 million and $83.5 million respectively. In addition, five of the single‐family homes in
SDHC’s portfolio were transferred to its discrete component unit, HDP.
In addition, multi‐year renovations at Hotel Sandford were completed as well as comprehensive renovations of the
single‐family portfolio are included in the increase to building improvements.
Depreciation expense for the Fiscal Year ended June 30, 2021, was $9.5 million.
Kearny Vista
SDHC‐owned Affordable Rental Housing
FY 2021 Popular Annual Financial Report San Diego Housing Commission 13
Real Estate Portfolio
As of June 30, 2021, SDHC owns 150 properties with 2,401 housing rental units, 189 of those properties are federal
public housing units that SDHC operates in the City of San Diego.
In Fiscal Year 2021, SDHC completed the following affordable housing property acquisitions:
Hillcrest Inn Apartments, 47 housing units for low‐income and middle‐income families.
Kearny Vista Apartments, 144 housing units for individuals who experienced homelessness.
Valley Vista Apartments, 192 housing units for individuals who experienced homelessness.
SDHC also is a lender and authorizes the issuance of Multifamily Housing Revenue Bonds to support new affordable
housing. The agency’s hallmark has been its ability to foster affordable housing developments by forging
partnerships with nonprofit and for‐profit developers, and the City of San Diego.
In Fiscal Year 2021, SDHC completed the following affordable housing partnership developments throughout the
City of San Diego:
Stylus, 201 affordable rental units for San Diegans with low income
Wesley Terrace, 159 affordable rental units for low‐income seniors
Mission Terrace Apartments, 76 affordable rental units for San Diegans with low income
Hillside Views Apartments, 297 affordable rental units for San Diegans with low income
Benson Place, 82 affordable rental units for San Diegans experiencing homelessness
As of June 30, 2021, SHDC has committed $34.9 million towards loans and grants for additional
affordable housing projects that had not yet been fully funded or completed.
Benson Place
82 Affordable rental apartments
for San Diegans who have experienced
homelessness
Stylus Apartments
201 Affordable Apartments
for San Diegans with low income
FY 2021 Popular Annual Financial Report San Diego Housing Commission 14
Housing Development Partners
Beginning with Fiscal Year 2012, SDHC included the
consolidated financial statements of its nonprofit
affiliate, Housing Development Partners (HDP), as a
discretely presented component unit. They are
reported in a separate column in the financial
statements to emphasize that HDP is legally separate
from SDHC.
HDP develops and preserves affordable housing for
low‐income San Diegans through the rehabilitation of
existing buildings and new construction.
Rental housing for seniors, families, veterans, workers,
and tenants with special needs are among the
developments in HDP’s real estate portfolio.
Since its inception, HDP has developed 1,714
affordable rental housing units in the City at properties
it has acquired and created through partnership
developments, which includes 769 units on SDHC‐
owned land that is ground leased to HDP: Parker‐Kier
Apartments (33 affordable units and one manager’s
unit), Hotel Churchill (72 affordable units and one
manager’s unit), Village North Senior Garden
Apartments (119 affordable units and one manager’s
unit), Casa Colina (74 affordable units and one
manager unit), Quality Inn (91 affordable units and one
manager’s unit), West Park Inn (46 affordable units and
one manager’s unit), and San Diego Square (154
affordable units and two manager’s units).
Additionally, included in the total, is SDHC’s January
2020 transfer of Mariner’s Village (170 affordable
units and two manager units) and SDHC’s December
2020 transfer of five single family properties for a pilot
program in building accessory dwelling units,
sometimes refered to as “granny flats” or ADUs.
The abbreviated financial statements are for the
period ending December 31, 2020, and are presented
in thousands of dollars.
HDP – Discretely Presented Component Units
December 31, 2020
ASSETS
Current and other assets 33,670$
Capital assets net of depreciation 126,931
Total assets 160,601
LIABILITIES
Current liabilities 6,296
Notes Payable and non‐current liabilities 182,003
Total liabilities 188,299
NET POSITION
Restricted 25,063
Unrestricted (52,761)
Total liabilities and net position 160,601$
OPERATING REVENUES
Dwelling rental income 14,539$
Other revenue 2,345
Total Operating revenues 16,884
OPERATING EXPENSES 10,863
Income before depreciation and other non‐ 6,021
operating income and expenses
Depreciation 4,768
Deficit before other non‐operating income
and expense 1,253
Other non‐operating income
and expenses, net (5,880)
Change in net position before capital (4,627)
transactions
Capital contributions, net 865
Transfer of property to component unit (33,164)
Change in net position (36,926)$
Net position:
Beginning of year 9,228
End of year (27,698)$
FY 2021 Popular Annual Financial Report San Diego Housing Commission 15
Addressing Homelessness
The City Homeless Shelters and Services Programs provide temporary shelter and supportive services to some of
the City’s most vulnerable residents. SDHC administers these programs through a Memorandum of Understanding
(MOU) with the City that first took effect on July 1, 2010.
The City’s homelessness programs also include:
Day Center Facility for Homeless Adults;
Homeless Transitional Storage Center;
Four interim housing programs (Connections Housing
Downtown, a one‐stop housing and services center for single
adults experiencing homelessness; Interim Housing Program
for Families, which provides short‐term housing and services
to help families experiencing homelessness stabilize their
lives; the Interim Housing Program for Adults operated out
of the Paul Mirable Center on the Father Joe’s Villages main
campus; and the new Bishop Interim Shelter Program, which
also provides shelter beds for single adults);
A rapid rehousing program; and
The City’s Serial Inebriate Program (SIP) transitional housing
program
In Fiscal Year 2021, SDHC also supported more than 138 transitional housing beds, operated by three providers at
different locations in the City, with City of San Diego Inclusionary Housing Funds and Housing Trust Funds.
With Federal Emergency Solutions Grant (ESG) and Continuum of Care funds, SDHC partnered with several local
nonprofit agencies to provide Rapid Rehousing services. The ESG grant also funds the City’s Security Deposit Plus
program, which provides financial move‐in assistance for persons experiencing homelessness.
On October 16, 2020, the SDHC Board of Commissioners approved a recommendation to the City Council and
Housing Authority for SDHC to directly operate a Homelessness Response Center. The City of San Diego’s
Homelessness Response Center (HRC) provides a broad range of services to help individuals and families
experiencing homelessness on their path to permanent or longer‐term housing, including housing‐focused system
navigators. All HRC services are focused on meeting the unique needs of each customer being served. SDHC operates
and administers the HRC, in collaboration with the City of San Diego, People Assisting the Homeless (PATH), RTFH,
and homelessness service providers.
In Fiscal Year 2021, SDHC also received approval from the City Council to maintain three Rapid Rehousing (RRH)
Programs, with funding from Homeless Housing, Assistance and Prevention (HHAP) Program and American Rescue
Plan Act (ARPA) Funds. The RRH programs launched in July 2019 and contained funds to serve 120 high‐need
households experiencing homelessness throughout the program term (both families and individuals).
In November 2020, SDHC purchased two hotel properties using State of California HomeKey funds and created 332
units of permanent housing with supportive services for individuals who previously experienced homelessness. The
two properties, Kearny Vista Apartments and Valley Vista Apartments, offer affordable housing units, paired with
case management and robust supportive services, to persons experiencing homelessness.
City of San Diego Bridge Shelter
FY 2021 Popular Annual Financial Report San Diego Housing Commission 16
Moving to Work
SDHC is one of only 39 original “Moving to Work”
(MTW) agencies out of approximately 3,350 public
housing authorities nationwide. In 2021, HUD
announced the addition of 41 public housing
authorities as new MTW agencies.
MTW status provides flexibility and allows SDHC to
determine the most effective housing assistance
programs for households with low income or
experiencing homelessness in the City of San Diego
At the close of Fiscal Year 2021, SDHC had committed
a total of more than 4,700 rental assistance subsidies
for families and individuals experiencing homelessness
dating back to 2002. This includes 1,235 Veterans
Affairs Supportive Housing (VASH) vouchers.
SDHC also committed 214 federal Project‐Based
Housing Vouchers (PBVs) to affordable housing
developments in Fiscal Year 2021. These vouchers are
known as affordable housing PBVs. They provide rental
assistance to households with low income in the City
of San Diego.
Additional MTW Programs
SDHC's MTW operating budget in Fiscal Year 2021 was
$191,865,040. Examples of MTW initiatives that SDHC
has implemented are the expansion of the Choice
Communities Initiative, updates to rental assistance
payment standards, Path to Success, the SDHC
Achievement Academy, and HOUSING FIRST – SAN
DIEGO homelessness initiatives, such as Guardian
Scholars, the Monarch School Project, SDHC Moving
Home Rapid Rehousing and SDHC Moving On Rental
Assistance.
Choice Communities. SDHC’s Choice Communities
initiative provides families that receive rental
assistance with more flexibility to choose to live in
neighborhoods that offer more opportunities for
transportation, schools, and employment.
To increase housing opportunities through this
initiative and to assist as many low‐ income families as
possible, on April 1, 2021, SDHC updated the payment
standards that are used to determine the amount of
rental assistance each family receives.
In Fiscal Year 2021, 1,421 families moved to Enterprise
or Choice communities. In addition, 775 families were
contacted by an SDHC Mobility Counselor to assist with
pre‐ and post‐moving counseling, housing search
assistance and guidance about neighborhood features
for families moving to Choice or Enterprise
Communities.
Families moving to Choice or Enterprise Communities
are eligible for no‐interest security deposit loans up to
the payment standard for the area for their voucher
size. In Fiscal Year 2021, 252 families participated in
this Security Deposit Loan Program, and SDHC loaned
a total of more than $411,820 through this program
SDHC Achievement Academy. The SDHC
Achievement Academy is a learning and resource
center and computer lab located at SDHC's downtown
San Diego headquarters. Its programs emphasize
career development, job skills and personal financial
education. These services are available at no charge to
families receiving federal Section 8 Housing Choice
Voucher rental assistance and public housing
residents.
In Fiscal Year 2021, more than 2,300 SDHC
Achievement Academy participants attended 217
workshops addressing various topics, such as financial
education, life skills, workforce readiness, computer
literacy and job recruitments. The average hourly
wage participants earned was $16.80.
EnVision Center. The SDHC Achievement Academy is
one of the key partners in the collaboration among
SDHC, the City of San Diego, and the San Diego
Workforce Partnership that HUD selected to be an
EnVision Center, which promotes financial self‐
reliance among federal rental assistance participants
and public housing residents.
FY 2021 Popular Annual Financial Report San Diego Housing Commission 17
Demographics of the HCV Program
Funded by HUD and managed by SDHC’s Rental Assistance Division, the federal Section 8 Housing Choice Voucher
Program provided rental assistance to more than 16,000 low‐income families in the City of San Diego. The number
of rental assistance households fluctuates throughout the year, as participating families are able to move on and
leave the program at different times, enabling SDHC to bring new families into the program from the waiting list.
Resident Members per
Household
Nearly 8,500 households
have a single‐member
22% have two members
11% have three
members
Income per HCV
Household
66% of HCV
recipients’
income is less
than $19,999
FY 2021 Popular Annual Financial Report San Diego Housing Commission 18