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Together, Philanthropy, Business and Government

Can Meet San Diego’s Affordable Housing Challenge

By Beth Sirull

Photo Courtesy of Beth Sirull

an Diego is blessed to have many, The first project is anticipated to be built million in philanthropic capital in order to
many generous charitable donors. In on a parcel owned by a church in southeast establish proof of concept. With these funds,
Sthe aggregate, Americans donated San Diego and will likely hold sixteen units. YIGBY will be able to raise debt from private
over $425 billion to charity in 2018. That’s This is a tiny number given the current lack sources such as local banks, community
more than the gross national product of of affordable housing. But if this first project development financial institutions, corpo-
almost 100 countries in the world. Extrapo- works, the concept is scalable and could put rations or individuals. The budget is being
lating from national statistics, San Diegans a real dent in San Diego’s housing crisis. developed so that the church can service
likely donated over $4 billion to charity in the debt and maintain the property with
2018 alone. That’s a lot of money! rents from Section 8 or Veterans Vouchers.
And yet we see that San Diego, like most Churches are also looking to use any excess
American cities, still faces enormous chal- funds, although they will be small in the early
lenges—homelessness, affordable housing, years but grow as debt is decreased, to fund
food insecurity, good jobs with livable special projects and endowments. This is a
wages for all, to name just a few. long-term investment for the church where
Clearly, philanthropy is essential, but they leverage their assets to do good for the
alone it is not enough to address these big, community and their congregation. Both the
thorny issues. This year’s California bud- City of San Diego and San Diego County are
get allocated nearly $2 billion to address supportive of YIGBY innovations. Last year,
homelessness in the state. Government the City of San Diego changed policy on the
spending—federal, state and city—has not required parking ratio at places of worship,
been enough either. Private corporations which frees up land to use for housing.
have started to devote funds to affordable From the philanthropist’s perspective,
housing, but that is just getting started, and the $1 million of charitable funding is being
on its own won’t do the trick. leveraged effectively. From the lender’s
Solving society’s biggest issues re- standpoint, the debt is reasonably secure as
quires more than one sector can provide. It government-subsidized rents are enough
requires that the private sector—businesses to pay back the debt. As for government,
and private investment—join with govern- currently, there are thousands of people in
ment and philanthropy, each doing their San Diego who have housing vouchers but
part. YIGBY’s innovative model is to use no place to use them and the costs of manag-
San Diego is one of two cities recently pre-fabricated housing like shipping con- ing the growing homelessness problem are
named an “Innovation Lab” as part of a tainers that are already pre-approved by the unsustainable.
federal initiative called ImPower, which is State at the manufacturing level. This lowers Donors need to step up and provide the
designed to facilitate partnerships between the cost of building the units and saves $1 million of philanthropy. A bank or other
philanthropy, government and the private months of processing time with munici- lender must agree to provide the loan. Once
sector. Locally, ImPower is being facilitated palities. Today’s manufactured units and these pieces are in place, and the pilot is
by San Diego Grantmakers. One of its first shipping containers are an emerging low cost completed, additional sites can be built in
projects is YIGBY, which stands for Yes In solution that are beautiful and livable with relatively rapid succession.
God’s Backyard, a pilot project to rapidly several manufacturing plants in Orange and Similar structures can be used to address
build affordable housing in San Diego. Los Angeles Counties. The cost will be ap- other challenges facing San Diego and cities
There are over 1,000 vacant parcels of proximately $240,000 per unit, a far cry from across the country. At a time of unprecedent-
land in the county that are owned by faith- the current approximately $500,000 cost of ed division in our society, bringing govern-
based institutions—churches, mosques, a more traditional affordable housing unit ment, nonprofits and businesses together to
synagogues and the like. YIGBY aims to that uses low-income tax credits. Although solve pressing community issues ought to be
harness philanthropy, government funds federal low-income housing tax credits can something we can all agree on.
and private investment to build affordable be very effective for some projects, they add
housing on these parcels—in God’s back- an expensive, cumbersome administrative Beth Sirull is the President and CEO of the
yard. The initiative’s board is peopled with burden. Jewish Community Foundation of San Diego,
experts in housing development, architec- Here’s how philanthropy, private capital the Miriam and Jerome Katzin Presidential
ture, construction, legal compliance, and and government funds could work togeth- Chair. She can be reached at
operating affordable housing. er. For this first project, YIGBY is raising $1 beth@jcfsandiego.org.

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