San Diego Housing Push Driven by Greed and Power
In US History, tenement housing referred to multi-family dwellings, often poorly constructed and overcrowded, that housed working-class families, particularly immigrants, in late 19th and early 20th century urban areas. These buildings were characterized by cramped living conditions, inadequate ventilation, and contributing to urban poverty.
Though the “affordable housing” structures that are being built today in San Diego may have a larger footprint, they do not provide adequate outdoor recreation facilities, parking and the infrastructure to make them desirable or beneficial to families and children. They are also not affordable, renting at $2,878 (including utilities) for a one-bedroom unit.
We have recently learned that there is a trio operating in San Diego who are driven to build big and tight and have taken advantage of the elderly who are one of their primary targets for home sales.
Leading the real estate side of the business is Sundae which is owned and operated by Josh Stech. Sundae does extensive advertising directed at vulnerable homeowners with naturally occurring affordable housing (NOAH) who are looking for a quick sale.
They advertise on TV and other means, stating: “We will buy your house, no closing costs and you might even qualify for a $20,000.00 advance.”
Additionally, Mr. Christian Spicer of SDRE, PRO-CAL and Vertical MVMT construction states on his investor brochures that he, Mr. Christian Spicer has an “An integrated real estate partnership with Sundae Inc.”
Though Sundae Inc. promotes itself as an independent homebuyer accepting bids from everyone, not one “integrated” with Christian Spicer and SDRE, the firm is also aligned with Tommy Hinson of Fletcher Cove Capital investments.
What has also become evident is that this trio, integrated group, are also responsible for building 16 to 18 unit complexes on tiny cul-de-sacs on canyons that the city officials allowed to happen.
Now Mr. Christian Spicer of SDRE and Mr. Tommy Hinson of Fletcher Cove Capital and Josh Stech of Sundae refer to themselves as “opportunists,” as stated by Spicer in his investor brochure.
And now we have Senator Wiener, who is pushing for SB 79, which will only provide “the opportunists” with more opportunities for greed and wealth at the expense of renters.
The premise of SB 79 is that building market rate homes will somehow address the housing affordability challenges faced by moderate and low income households. The experience of San Diego contradicts this assumption. As a result of various factors, including streamlining project approvals and reducing affordable housing requirements, San Diego has seen a boom in new market rate housing development over the last several years, to the extent that San Diego is now ahead of its annualized above market rate housing targets for the current RHNA cycle. However, while rents have softened at the high end of the market, lower income households have not benefited and continue to be rent challenged.
Lower income households are further squeezed by the demolition of naturally occurring affordable housing (NOAH) to make way for new premium rent high rises.
Because of weak replacement unit and inclusionary housing requirements, market rate projects, such as the developments promoted by SB 79, often result in fewer deed-restricted affordable units than were provided by the demolished housing. Thus, families whose homes are demolished to make way for new market rate projects find themselves not only dealing with the stress of being displaced from their homes but also competing for new housing in a shrinking market for homes they can afford.
This is the time to reach out to local elected officials at the legislature and examine whether it is addressing California’s housing affordability challenges or making them worse through continued predatory state legislation such as SB 79.
Category: Architecture, feature, Housing, Local News
