October 25, 2024
Construction Will Convert Former Hotel Into Affordable Apartments for People Experiencing Homelessness
State, City, County, San Diego Housing Commission and Regional Task Force on Homelessness collaborate to create 161 new affordable housing units
SAN DIEGO, CA — Construction that begins next week will transform a former extended-stay hotel in Mission Valley into affordable rental apartments owned by the San Diego Housing Commission (SDHC) to provide rental homes of their own for more than 160 people currently in homelessness shelters or on the streets in the City of San Diego.
The project is one of the ongoing collaborative initiatives among the City of San Diego, County of San Diego, SDHC and Regional Task Force on Homelessness (RTFH) to address homelessness, with significant funding from the State of California’s Homekey Program.
“Transforming hotels into supportive housing is a way to get people off the streets and into homes more quickly,” Mayor Todd Gloria said. “This Homekey project demonstrates the power of collaboration between the State, City, County, and local partners to address homelessness more effectively. Along with the other five Homekey projects in the City of San Diego, Presidio Palms pushes the total new homes created through this program to 608 – each one an opportunity for San Diegans to rebuild their lives.”
Since Homekey began in 2020, the State has awarded more than $105 million to SDHC, in collaboration with the City and County, to create 608 new affordable rental homes with on-site access to supportive services for people experiencing homelessness.
“Increasing the availability of affordable housing is the key to preventing and addressing homelessness and reducing cost-of-living in San Diego,” said San Diego City Council President Sean Elo-Rivera, who represents Council District 9, which includes a recently completed, Homekey-funded affordable housing property, PATH Villas El Cerrito, also developed in collaboration with the City, County and SDHC. “That is why it is so important we work creatively and collaboratively to create housing quickly and efficiently. This project is an example of all of that. We deeply appreciate the work of the San Diego Housing Commission and the Regional Task Force on Homelessness for using State Homekey Funds to create the housing we so desperately need.”
The State awarded $35 million toward SDHC’s purchase and rehabilitation of Presidio Palms. The City and County each funded $17.8 million, and the RTFH awarded $1.1 million.
“It’s projects like Presidio Palms and the thousands of additional affordable housing units in the pipeline that will help to end San Diego’s housing crisis,” said City Councilmember Stephen Whitburn, who represents Council District 3, which includes Presidio Palms and another SDHC-owned, Homekey-funded property, Valley Vista, which consists of 190 affordable housing units. “This has been a tremendous collaboration which will transform this one-time hotel into a warm and welcoming home for people who have experienced homelessness.”
In addition to capital funds for SDHC’s purchase and rehabilitation, the County of San Diego committed to request more than $8.5 million over five years toward the necessary behavioral health supportive services for Presidio Palms residents.
“Today’s groundbreaking for Presidio Palms is a significant step forward in addressing homelessness in San Diego County,” said Chairwoman Nora Vargas of the San Diego County Board of Supervisors. “Together, we’re not just building housing—we’re paving pathways so that everyone has the chance to thrive in a safe and stable environment.”
The affordable apartments at Presidio Palms will provide on-site access to supportive services for residents, such as outreach and engagement; mental health services; healthcare/physical health services; behavioral health services; substance use services; case management; care coordination; life skills training; education and employment services; assistance obtaining benefits; and essential documentation and transportation services.
SDHC committed 161 rental housing vouchers to help Presidio Palms residents pay their rent, and SDHC will manage the property.
“With Presidio Palms, we are continuing the kind of collaborative efforts we have seen create housing more quickly for those who need it most, with supportive services to help them achieve housing stability,” SDHC Vice Chair of the Board Ryan Clumpner said. “These apartments will be life-changing for residents and will benefit the San Diego community by providing homes for our unhoused neighbors.”
The rehabilitation of Presidio Palms will include:
- Creation of a community room and office spaces
- New heating and air conditioning in residential units
- Solar energy for the property
- Recessed fire sprinklers in all units
- New lighting
- New flooring
- Interior and exterior paint
- New doors for all units
- New beds for all units
- Upgrades to life safety systems
- Security additions, including more cameras
- Accessibility upgrades for individuals with disabilities in common areas and in nine units to ensure compliance with current Americans with Disabilities Act requirements.
The rehabilitation of the property is anticipated to be completed by April 2025.
“We know housing solves homelessness, and putting our funding into housing like this is essential,” RTFH CEO Tamera Kohler said. “This new community will provide housing and wraparound services people need to regain their independence. It also will free up shelter space, removing some pressure from a homelessness system that performs well, but is overwhelmed by the number of people who fall into homelessness. Bottom line: this new community and others like it help us achieve our primary goal: ensuring homelessness is a rare and brief occurrence.””
Residents will be identified through RTFH’s Coordinated Entry System, which screens individuals experiencing homelessness for the most appropriate housing options based on who is most in need and what housing options are available and then matches them to housing resources available from homeless housing providers.
Presidio Palms is also within a quarter of a mile of Metropolitan Transit System bus stops for route 88, which provides quick connections to major regional transit hubs in Old Town and Fashion Valley.
The Homekey program provides an opportunity to bring much-needed housing online faster and cheaper than traditional new-construction affordable housing. Thanks to funding and regulatory streamlining from Homekey, San Diego has a unique opportunity to get people out of encampments and shelters and into permanent homes in months rather than years.
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Media Contact:
Scott Marshall
Vice President of Communications
San Diego Housing Commission
619-578-7138