Council and housing authority clear Mercado Apartments bond authorization for 224 affordable homes in Barrio Logan

Council and the City’s housing authority on Tuesday advanced final financing steps for a major affordable-housing redevelopment in Barrio Logan.

Colin Miller, senior vice president for the Housing Commission’s real estate team, told council staff and residents the Mercado Apartments proposal would issue up to $30,073,052 in tax‑exempt multifamily housing revenue bonds to support acquisition, rehabilitation and new construction at a site on Newton Avenue. Miller said the project would expand the existing 144‑unit property into 224 units (222 affordable), demolishing 12 units and building 92 new units for a net increase of 80 homes while extending affordability covenants for 55 years.

Miller provided line‑item detail in the presentation: total development costs are “just over $113,000,000” with notable sources including bond‑financed permanent loans, assumed loans from the Housing Commission, deferred developer fee and tax‑credit equity. Rents would range from roughly $930 per month for a one‑bed at 30% AMI to about $2,580 per month for a three‑bed at 60% AMI, staff said.

Councilmember Stephen Whitburn and others emphasized the project’s transit proximity and community benefits; Councilmember Alejandro Moreno, whose District 8 includes Barrio Logan, made the motion to move the staff recommendation and described the project as the kind of investment the neighborhood needs to preserve affordability. The council approved the TEFRA resolution and the housing authority later authorized the bonds; both votes were recorded as unanimous (7–0 with some members absent at different roll calls).

What it means: If financed on the schedule presented, construction was expected to start in June with a projected completion timeline presented by staff. Staff noted relocation benefits and on‑site services and said the project is being developed by Metropolitan Area Advisory Committee on Anti Poverty (MAC), an experienced nonprofit developer.

Next steps: Closing on construction financing and beginning construction as early as the end of the month if other conditions are met; ongoing monitoring by the Housing Commission and required compliance with bond and affordability covenants.