The Salvation Army of San Diego has been awarded a $4.27-million federal loan to finance the construction of an apartment complex for disadvantaged senior citizens in El Cajon, it was announced Monday.
Bill Luttrell, San Diego County coordinator for the organization, said the project will include from 55 to 75 studio and one-bedroom units that will rent for about $250 a month. Residents will pay as much as 30% of their income in rent, and the federal government will subsidize the difference, if any.
The loan from the U.S. Department of Housing and Urban Development will be repaid over 40 years at a rate around 9%, Luttrell said. Under the terms of the loan, construction on the project must begin within 18 months.
The El Cajon project will be the Salvation Army’s second senior citizen development in the county. Construction is about to begin on a similar 69-unit project in Oceanside, Luttrell said.