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NewsKPBS Public MediaSeptember 16, 2026San Diego County

San Diego City Council amends 101 Ash Street affordable housing conversion agreement

Photo: KPBS Public Media

The San Diego City Council voted to amend the agreement for converting the 101 Ash office tower into low-income housing, extending the ground lease to 65 years, increasing total units to 252, and raising the developer's interest rate to 5% compound interest. The project will provide 249 affordable apartments for individuals and families earning 30% to 80% of the county's median income, alongside retail space and a childcare facility.

HousingReal EstateLocal GovernmentAffordable HousingUrban Development
Read the full story at KPBS Public Media

Why It Matters

The amendment alters the city's financial terms and lease timeline for a major downtown property redevelopment, directly affecting low-income renters eligible for 249 upcoming affordable housing units and changing the financial return and loan structure for the city.

Key Facts

  • The San Diego City Council voted to amend the agreement to convert the 101 Ash office tower into affordable housing.
  • The ground lease is extended from 60 to 65 years.
  • The total number of units is increased from 250 to 252.
  • The interest rate the developer pays the city increases from 4% simple interest to 5% compound interest.
  • The building's new official name and address is 107 Ash Street.
  • The building was originally opened in 1968 as a 21-story high-rise.
  • Changes were required by the developer's lenders, including the San Diego Foundation and the U.S. Department of Housing and Urban Development.
  • The redevelopment will feature 69 studios, 55 one-bedroom apartments, 73 two-bedroom apartments, and 55 three-bedroom apartments.
  • Three units will be reserved for on-site property managers.
  • 249 units will be affordable to individuals and families earning between 30% and 80% of the county's median income.
  • The project includes 138 parking spaces, 25,000 square feet of retail space, and a 4,000-square-foot childcare facility.
  • Real estate broker Jason Hughes previously pleaded guilty to a misdemeanor conflict-of-interest charge in 2023 and agreed to repay a $9.4 million commission.

Who's Mentioned

OrganizationSan Diego Foundation“One of the developer's lenders requiring lease changes.”PersonStephen Whitburn“District 3 Councilmember commenting on the complexity of office conversions.”OrganizationSan Diego City Council“Voted to amend the deal to convert the 101 Ash office tower.”PersonKevin Faulconer“Former Mayor under whose administration the initial lease-to-own agreement was n”location107 Ash Street“New name and address for the former 101 Ash office tower.”PersonKent Lee“Councilmember commenting on the adaptive reuse and childcare opportunities.”PersonKelly Moden“Leads the development team for the project.”OrganizationU.S. Department of Housing and Urban Development“One of the developer's lenders requiring lease changes.”PersonJason Hughes“Real estate broker who pleaded guilty to a conflict-of-interest charge regarding”