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Mission Real Estate: St. Luke’s

Why is St. Luke’s using its property to develop affordable housing? 

In 2018, St. Luke’s leadership became concerned that members of the congregation could not afford to live in the North Park community and recognized that St. Luke’s was in a prime location for apartments affordable to low-income households. They saw the opportunity for churches to lead the way in addressing the region’s affordable housing crisis in a manner that proclaims the gospel values of justice, hospitality, generosity, and love. 

How did St. Luke’s identify Trestle Build as its development partner? 

St. Luke’s requested proposals from several affordable housing developers and worked with a consultant to evaluate which of the options provided the most meaningful benefit to the congregation and community. Trestle was selected based on their offer, development experience, reputation, and mission alignment.  

Trestle’s mission statement: We develop high-quality affordable housing in exceptional locations, because we believe that communities flourish when people of all incomes, status, and standing can afford to live in them. 

Are we selling the St. Luke’s property?  

No, Trestle has a 99-year ground lease, which allows them to develop and operate affordable apartments on the part of the St. Luke’s property previously occupied by the community garden. Ground leases are long-term agreements that give a tenant the right to develop and use the land for a specified purpose and period of time in exchange for rent. 

What will St. Luke’s receive in rent and how will those funds be used? 

Trestle will pay one single upfront ground lease payment of $2.2 million dollars, which will provide funding to support both the annual operating budget and long-term investment. St. Luke’s will be entitled to withdraw a percentage of the fund’s income each year.  

What will the building look like when it’s finished?

The picture (right) shows a conceptual design for the building from the corner of Gunn and 30th Streets. When complete, the building will be eight floors of studio, 1-bedroom, and 2-bedroom apartments with a central courtyard on the ground floor and a community room on the 8th floor. This design considers a number of factors, such as the flow of the rooms, light, and air to maximize livability of the units, as well as the efficiency and enjoyment of the amenities and common areas for the residents.  

The look and feel of the building aims to reflect the Craftsman architecture prominent in homes throughout the community, so that it does not look out of place as neighborhood residents and visitors go to and from church, local businesses, and the farmer’s market. The architectural and design elements are also intended to celebrate the liveliness brought by the younger families and diverse cultures that have transformed the community over the last several decades.

In the coming months, Trestle’s design consultants want to work with the congregation to incorporate colors, textures, and art that reflect the cultural diversity of the St. Luke’s congregation into the interior design. The Trestle team will also work with St. Luke’s on the mural art that will go on the wall between the residential building and the church entrance. Trestle’s goal for the mural is for the congregation to exit from the church with a beautiful and inspiring view!   

How close will the building be to the church? 

The entrance to the church will be approximately 15 feet from the side of the new apartment building. Trestle was required to submit the conceptual design to the City for review to make sure that the project meets state and local building codes, including requirements to maintain an adequate distance between the building and church. The process for getting a building permit requires multiple reviews. 

How long will construction last? 

Construction started in early March and is expected to continue for 18-21 months. That timeline could be extended if weather, slow responses from government agencies and utilities, and supply chain issues cause delays.  

How will construction affect St. Luke’s worship experience and use of the church and offices? 

Although some disruption and dust on the church property will be unavoidable, the Trestle team and its partners are highly experienced in building in urban areas and committed to minimizing the impact of construction wherever and whenever possible. Trestle is committed to minimizing disruptions to both regular Sunday services and the day-to-day operations of the church. Some of the steps they will take include: 

  • Incorporating a list of important church celebrations and services into the construction schedule to reduce disruptions to worship. 
  • Using elevated and covered scaffolding and pathways along the property line to ensure that the church entryway and trash bins remain accessible and free of debris. 
  • Communicating updates on the construction if material changes are expected to affect the church. 

How will construction affect parking? 

Parking along 30th and Gunn Streets will be reduced during construction in the areas immediately adjacent to the development. For example, the 2-3 spaces along 30th Street in front of the project site will be unavailable during construction. In addition, deliveries and equipment setup may temporarily restrict access further from time to time. The Trestle team will work with St. Luke’s to anticipate and communicate disruptions.  During construction, visitors are encouraged to use the parking garage just one block up from the site. 

How do we know that the rents will really be affordable? 

The ground lease provides for 77 units of multifamily rental housing restricted to households earning no more than 80% of area median income (AMI), plus one manager’s unit. The project itself provides even deeper affordability, with units between 30% to 70% AMI.  

In 2024, the median income for the City of San Diego is $119,500 for a four-person household. The table below is a quick reference guide to whether your income is between 30% AMI and 70% AMI based on household size. A more complete guide by income level and household size is published each year by the San Diego Housing Commission. 

Household Size (Number of People)  30% of
Area Median Income 
70% of
Area Median Income 
1  $31,850  $74,250 
2  $36,400  $84,850 
3  $40,950  $95,450 
4  $45,450  $106,050 
5  $49,100  $114,550 
6  $52,750  $123,000 
7  $56,400  $131,500 
8  $60,000  $140,000 

 

Can my family move into this building once it’s complete? 

All deed-restricted affordable housing projects are required to follow fair housing regulations and make lease-up open to the general public. Families who want to know if they qualify for one of the units can refer to the San Diego Housing Commission Affordable Housing Resource Guide. It can take time to gather the information needed to apply, so families are encouraged to start early so they are ready when the interest list opens up. 

How will we know that the building will be well maintained over its 100-plus years of life?  What will St. Luke’s do with the building 100 years from now? 

The developer is responsible for maintaining the leased premises and improvements in good and safe order consistent with the standards of a first-class multifamily residential development. When the lease expires, the leased premises plus the improvements will be returned to St. Luke’s in good condition except for ordinary wear and tear.  

How do we know that the tenants in the new commercial space on the first floor of the building will align with the values of our church? 

Both the ground lease and public financing agencies prohibit specific commercial uses, such as gambling, bars, marijuana or CBD distributors, arcades, and more. The lease also requires written permission from the Diocese for religious use by another entity. 

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