The downtown San Diego-based developer is opening La Sábila Apartments as data shows the region trailing every other California metro in affordable housing construction.
VISTA — As San Diego County grapples with the distinction of being the only major California metro where affordable housing construction has declined in recent years, one developer is pushing in the opposite direction.
Wakeland Housing, a downtown San Diego-based nonprofit developer, is set to cut the ribbon Feb. 25 on La Sábila Apartments, an 85-unit affordable senior community at 2357 South Santa Fe Ave. in the unincorporated area of Vista. The $48.5 million project — roughly $570,588 per unit — brings studio apartments restricted to low-income residents aged 55 and older to a corner of North County that Wakeland CEO Rebecca Louie described as dramatically underserved.
Louie told the San Diego Business Journal that North County has “an incredible need for affordable housing,” adding that the project is designed to go beyond shelter. She said Wakeland is incorporating services to ensure seniors have the support they need to live independently.
The two-story, U-shaped building was designed by Dahlin Architects and constructed by Sun Country Builders. It features walkways, elevators, a central courtyard with outdoor amenities and a community space for onsite services and social programming. Partners West PACE and the County of San Diego Health and Human Services Behavioral Health Services will provide residents with resources aimed at employment, social engagement and housing stability.
Louie noted that Wakeland invests heavily in community programming because seniors especially can be affected by isolation.
Income Requirements and Homeless Transition Units
To qualify, residents must earn between 30 percent and 60 percent of the Area Median Income — approximately $31,272 to $69,480 annually for a one-person household, or up to $79,380 for a two-person household. Half of the apartments — 42 units — are reserved for seniors over 62 who are exiting homelessness through the County of San Diego’s Project-Based Vouchers program for very low-income tenants.
The project’s capital stack reflects the complex layering typical of affordable housing finance. The County of San Diego contributed $11 million, which subsidizes rents so the lowest-income residents pay just 30 percent of their income toward housing. Low-income housing tax credit equity provided by Wells Fargo Bank, allocated through the California Tax Credit Allocation Committee, accounted for more than $27 million. A Freddie Mac permanent loan supplied the remaining $10 million.
Louie told the San Diego Business Journal that affordable housing development always requires a mix of funding sources. She described the county’s contribution as “an incredible gift to the residents coming in,” noting that it allows Wakeland to house very low-income seniors at rents capped at 30 percent of their income.
San Diego Falling Behind
Those subsidies are becoming more critical as the region’s affordable housing production falls behind its peers. According to a recent RentCafe analysis, San Diego is the only metro area in California where affordable housing construction has decreased in recent years. The region dedicates just 19.2 percent of its total construction to affordable units — well below the roughly one-third share seen in San Francisco, the Central Valley and the Central Coast, and behind the 20 percent mark in every other California region.
San Diego did produce 4,064 affordable units between 2020 and 2024, making it the fourth-largest builder of affordable housing in the state and 22nd nationally, according to RentCafe. But the comparison is stark: San Francisco, the Central Valley and Sacramento all saw their affordable unit counts more than double over the same post-pandemic period.
The broader regional picture offers some counterweight. San Diego County invested $67.9 million in 2025 to support completion of 9 affordable housing developments totaling 867 apartment homes, according to the County of San Diego. The City of San Diego has invested $108 million in 24 projects through its Bridge to Home initiative since 2021, creating nearly 2,150 affordable apartments, according to Inside San Diego. Still, city officials have signaled a likely slowdown in permitting activity this year due to tariffs, economic uncertainty and federal policy ambiguity surrounding labor and construction materials.
Building a Pipeline
Wakeland is not waiting for conditions to improve. La Sábila is just the first of several projects the developer expects to bring online in short order. Its pipeline includes Cuatro, a 117-unit community for veterans and families in City Heights due this year; Teralta, a 74-unit project also in City Heights expected in 2026; Union Tower, a 94-unit development in National City on track for this year; and the 190-unit Becker project in San Diego, which will begin tenant listings in early 2027.
The competitive funding environment is a persistent challenge. Louie indicated that local agencies receive far more applications for funding than they have resources to distribute, according to the San Diego Business Journal. In response, Wakeland is pursuing bond initiatives and forging partnerships with philanthropic organizations. Price Philanthropies recently provided gap funding for one of its City Heights developments.
Louie said that the company is seeking nontraditional strategies to advance development “in this time of limited resources.”
Founded in 1998, Wakeland Housing has built 9,000 affordable apartments across 69 projects throughout California and employs 55 people from its downtown San Diego headquarters.
