Rose Creek Village: 59 Affordable Units Break Ground in Pacific Beach - What Builders Need to Know About High-Density Coastal Construction

Pacific Beach is getting its first 100% affordable housing development in decades. Rose Creek Village, a five-story building at 2662 Garnet Avenue, broke ground in September 2025 and will deliver 59 studio apartments by the end of 2026—including 18 units specifically reserved for homeless veterans. The project represents a watershed moment for coastal affordable housing, utilizing California's Density Bonus Law to exceed the area's longstanding 30-foot height limit and achieve 150 units per acre on just 0.4 acres.

For builders and developers, Rose Creek Village demonstrates both the technical challenges and business opportunities in high-density affordable housing construction. With $10+ million in public financing from the City of San Diego, San Diego County, and the San Diego Housing Commission, the project showcases how nonprofit partnerships and state/federal funding create recession-resistant construction opportunities even in premium coastal markets. Here's what contractors need to know about this groundbreaking development and the growing affordable housing sector.

What Makes Rose Creek Village Unique in Pacific Beach?

Rose Creek Village is the first affordable housing project in San Diego's coastal communities to successfully breach the 30-foot height limit established by voters in 1972 under Proposition D. The five-story, approximately 60-foot-tall building achieves 150 units per acre density on a 0.4-acre lot—far exceeding typical Pacific Beach development patterns. According to the San Diego Union-Tribune, the California Department of Housing and Community Development (HCD) ruled in June 2022 that the local height limitation is void because it conflicts with State Density Bonus Law. This precedent-setting decision opens doors for future high-density affordable projects in coastal zones, demonstrating how state law now supersedes local restrictions when projects meet affordability requirements.

How Does the 59-Unit Project Serve Low-Income Residents and Veterans?

Rose Creek Village dedicates all 59 studio apartments to residents earning between 30% and 60% of San Diego's Area Median Income—currently $69,480 annually for a single-person household. The San Diego Housing Commission reports that 18 units are specifically reserved for homeless veterans through HUD-Veterans Affairs Supportive Housing (HUD-VASH) vouchers. The U.S. Department of Veterans Affairs San Diego Healthcare System will provide ongoing supportive services for veteran residents, including case management and healthcare coordination. With nearly 1,000 veterans experiencing homelessness in San Diego County according to the Regional Task Force on Homelessness, this project addresses a critical gap. The development will remain affordable for 55 years through deed restrictions, ensuring long-term housing stability for Pacific Beach's most vulnerable residents.

What Construction Challenges Come with Building 60-Foot High on 0.4 Acres?

Constructing 59 units on 0.4 acres in Pacific Beach's coastal zone presents extraordinary engineering challenges. Studio E Architects designed a five-story structure that maximizes vertical density while meeting stringent coastal construction requirements for wind loads, corrosion resistance, and seismic safety. The project design incorporates solar panels across both the roof and building façade to power the all-electric building, requiring innovative structural solutions to support distributed photovoltaic systems. With only nine parking spaces allocated, the project relies on proximity to transit—located one mile from a transit center—and encourages alternative transportation. Site staging on the constrained Garnet Avenue lot requires careful coordination of material deliveries, equipment access, and construction phasing to minimize neighborhood disruption. For builders, projects like this demand expertise in urban infill construction, vertical development, and full accessibility compliance, as affordable housing typically requires 20%+ mobility-accessible units under federal standards.

How Are Nonprofit Developers Financing Rose Creek Village?

Rose Creek Village demonstrates the complex public financing structure typical of Low-Income Housing Tax Credit (LIHTC) projects. National CORE and San Diego Community Housing Corporation secured over $10 million through multiple funding sources: the City of San Diego provided a $4 million loan through its Bridge to Home program, the San Diego Housing Commission awarded a $2 million loan, and San Diego County contributed over $4 million through the No Place Like Home program targeting homeless housing. According to Terner Center research, San Diego LIHTC projects that include prevailing wage requirements cost approximately $94,000 more per unit—a significant cost factor builders must understand when bidding nonprofit work. The project's LIHTC allocation provides federal tax credits that attract private investment, creating a blended financing model that makes construction economically feasible despite below-market rents.

What Opportunities Does Affordable Housing Create for Pacific Beach Builders?

The Rose Creek Village project signals expanding opportunities for builders willing to navigate the affordable housing sector's unique requirements. As California faces a 3.5 million-unit housing shortage, state and federal funding for affordable housing remains consistent even during economic downturns—making this recession-resistant work. For contractors, affordable housing projects offer several advantages: nonprofit developers like National CORE and San Diego Community Housing Corporation build multi-project pipelines creating repeat business relationships, federal funding streams (LIHTC, HUD, VA programs) provide reliable project financing, and prevailing wage requirements ensure competitive compensation for construction workers. According to Holland & Knight's 2026 housing law analysis, projects over 10 units require prevailing wages with additional labor standards for 50+ unit developments. Builders who develop expertise in prevailing wage compliance, certified payroll documentation, and LIHTC construction requirements position themselves for this growing market sector.

How Does Rose Creek Village Compare to Other Pacific Beach Housing Projects?

Unlike the blocked Chalcifica ADU development—which faced CEQA challenges and community opposition despite being proposed for 136 units—Rose Creek Village succeeded by partnering with established nonprofit developers with proven affordable housing track records. The key differences: Rose Creek leveraged state Density Bonus Law which explicitly supersedes local ordinances, secured multiple public funding sources demonstrating broad government support, and focused exclusively on affordable housing rather than mixed-income development. Times of San Diego notes that while Rose Creek Village broke ground successfully, other projects like Turquoise Tower faced continued scrutiny, highlighting how 100% affordable projects receive preferential regulatory treatment. For developers, this demonstrates that mission-driven affordable housing faces fewer obstacles than market-rate development in constrained coastal areas—a strategic consideration when evaluating project types.

When Will Rose Creek Village Open and How Can Builders Get Involved?

Construction began in February 2026 with completion expected by the end of 2026, according to Inside San Diego. The accelerated 10-month timeline reflects the project's shovel-ready status and public funding commitments. For builders interested in affordable housing opportunities, the San Diego Housing Commission maintains a labor compliance program requiring all contractors on publicly funded projects to register and demonstrate prevailing wage expertise. Builders should establish relationships with nonprofit developers like National CORE, Wakeland Housing and Development Corporation, and Community HousingWorks, which maintain active development pipelines in San Diego. The Hope Through Housing Foundation, National CORE's nonprofit affiliate, will provide resident services at Rose Creek Village—demonstrating the comprehensive partnerships required for successful affordable housing projects. Contractors with experience in multifamily construction, coastal building requirements, accessibility compliance, and federal funding documentation will find growing demand as California pursues aggressive affordable housing production targets through 2030.