Oceanside’s City Council has approved a loan of up to $65 million in state bond proceeds for a developer building the eight-story, 179-apartment Seagaze affordable housing project.
The construction financing from the California Municipal Finance Authority carries no obligations for the city, which initially approved the project in 2022 despite residents’ concerns about parking and density.
All apartments in the single building will be studios of 300 square feet or less reserved for tenants who qualify in the categories of low, very low, or extremely low income. The developer is the Prime Company, owned by twin brothers Bryan and Chris Elsey of Manhattan, Kan.
Located just south of Mission Avenue at the corner of Seagaze Drive and Nevada Street, near Oceanside High School, the project qualified for $48.7 million in August 2024 from California’s Affordable Housing and Sustainable Communities (AHSC) Grant Program.
The developer received $35 million of that money as a loan, while North County Transit District got $12.9 million as a grant, and a small amount went to Interfaith Community Services, which assists low-income residents of affordable housing.
The state housing program provides grants, loans or a combination of both to projects that integrate public transportation and affordable housing, with an emphasis on benefits to disadvantaged and low-income communities.
“Housing is a very expensive endeavor nowadays,” said Leilani Hines, the city’s housing and neighborhood services director, on Wednesday.
The total costs for the Seagaze project are estimated at $96.5 million, Hines said. All financing has been arranged and the developer is ready to begin construction.
The site is on the transit district’s Breeze bus line and a half-mile from the Oceanside Transit Center, where there are stops for Amtrak, Coaster and Sprinter trains.
On-site amenities including in-unit washers and dryers, a multipurpose community room, a work-out gym and an elevated patio deck with spa. A five-level garage in the building will provide parking for 149 vehicles, along with 45 racks and five storage lockers for bicycles.
When first approved, the project included 64 hotel rooms and only 10 percent of the apartments were to be affordable housing. The hotel portion was removed after financing for that proved difficult.
