A proactive approach to funding affordable housing more than 30 years ago has resulted in the creation of 2,300 homes in Carlsbad affordable for those making between 30% to 80% of the area’s median income. City staff provided details in an annual report on its Housing Trust Fund presented to the City Council Tuesday.  

The Housing Trust Fund was created as part of the city’s inclusionary housing program in 1993 to increase affordable housing for lower income households. Over the last 30 years, the program has led to the creation of approximately 2,300 affordable homes in Carlsbad.  

• The program requires developers building new residential projects in Carlsbad to make 15% of the units affordable to people with low incomes. For projects with six units or less, developers can either include affordable housing or pay a fee. 

• The fees go into the Housing Trust Fund, where they’re combined with interest payments and other funding to subsidize the cost of constructing affordable housing. None of the money comes from the city’s General Fund, which pays for most day-to-day city services. 

• The Housing Trust Fund provides long-term loans for affordable housing projects and homelessness programs in the City of Carlsbad. Each dollar the city invests through the fund allows those projects to leverage additional outside financing and federal grants. 

During the 2022-23 fiscal year, the city invested $4.5 million in Housing Trust Fund money for projects that directly benefit the community, such as: 

Subsidizing the construction of new affordable housing ($4,087,226)
Operating the city owned Tyler Court affordable apartments for seniors with low incomes ($84,002)
Preservation of affordable housing ($20,647)
Advancing programs to reduce homelessness in Carlsbad including short-term housing navigation programs and the operation of the Carlsbad Service Center, which connects at-risk individuals to daily job opportunities ($55,990)