June 12, 2025
New Affordable Rental Homes for Unhoused San Diegans: Grand Opening Celebrates Conversion of Hotel into Housing
With federal housing vouchers and state Homekey funds, the San Diego Housing Commission collaborated with the City, County and Regional Task Force on Homelessness to create 161 affordable apartments
SAN DIEGO, CA — After living on San Diego’s streets or in shelters, 161 households—including Jaylen—will have affordable rental apartments of their own at a former extended-stay hotel that has been transformed into housing through extensive collaboration.
“Not having a home is one of the toughest things to deal with,” said Jaylen, one of the new residents of Presidio Palms in Mission Valley. “This is a safe space. It feels good to be in a clean living environment. You don’t realize how important that is until you don’t have it.”
Federally funded rental housing vouchers that the San Diego Housing Commission (SDHC) committed to Presidio Palms will help Jaylen and all other Presidio Palms residents pay their rent.
“Presidio Palms is a powerful example of what can be accomplished through strong collaboration—between HUD, local government, nonprofit partners, and service providers. By leveraging HUD tools like project-based vouchers and pairing them with local innovation, this development will give hundreds of San Diegans a second chance—and a place to call home,” said William Spencer, the Region IX Administrator for the U.S. Department of Housing and Urban Development (HUD).
The State of California’s Department of Housing and Community Development (HCD) awarded $35 million through the Homekey program toward SDHC’s purchase and rehabilitation of Presidio Palms. Including Presidio Palms, the State has awarded more than $105 million in Homekey funds to SDHC collaborations since 2020 to create more than 600 affordable housing units with supportive services for people experiencing homelessness.
“Permanent supportive housing like Presidio Palms reflects the future of affordable housing in California, as HCD’s new Homekey+ will replicate and build on the successes of Governor Newsom’s Homekey program,” said HCD Director Gustavo Velasquez. “Through communities like this, we are able to first meet housing need and then provide the services that help Californians who are struggling maintain housing stability and connect to opportunity. This is especially critical for people facing behavioral health challenges, and young people exiting foster care without familial support.”
San Diego Mayor Todd Gloria and the San Diego City Council have strongly advocated and supported efforts to secure State Homekey funds for San Diego, which provide an opportunity to bring much-needed housing online faster and cheaper than traditional new-construction affordable housing. The City also allocated $17.8 million for Presidio Palms.
“With support from the state’s Homekey program and strong local investment, 161 San Diegans now have a safe place to call home—along with the supportive services they need to stay housed,” said San Diego Mayor Todd Gloria. “Presidio Palms shows what’s possible when we act with urgency and work together to deliver housing that ends homelessness. This is precisely the kind of collaboration we must continue as we keep working toward our goal of a putting a roof over the head of every San Diegan at a price they can afford.”
“The best way to tackle our homelessness crisis is through housing,” said Council President Joe LaCava. “I thank the San Diego Housing Commission, the state’s Housing and Community Development Agency and the U.S. Department of Housing and Urban Development for improving the lives of our most vulnerable populations. I look forward to continued local, state, and federal collaboration as we deliver more paths from the streets and shelters and into housing.”
“I am thrilled to see residents move into Presidio Palms in District 3,” said Councilmember Stephen Whitburn, whose Council District includes Presidio Palms and another SDHC-owned, Homekey-funded property, Valley Vista, which consists of 190 affordable housing units. “These residents have experienced homelessness and many live with disabilities. At Presidio Palms these residents will have access to invaluable supportive services on-site. San Diego needs more places like Presidio Palms for residents to thrive. I applaud the San Diego Housing Commission for bringing this Project Homekey housing complex in Mission Valley to fruition.”
“Solving our homelessness and housing affordability crises requires creativity and collaboration. Presidio Palms has transformed an aging hotel into 161 homes that will move over 200 San Diegans out of homelessness and into stability and supportive services,” San Diego City Councilmember Seah Elo-Rivera said. “The rapid reconstruction and opening of Presidio Palms and other Homekey projects prove that San Diego can create new housing quickly and efficiently when we think outside the box and work together. I thank the Governor for his innovative Homekey Program and for everyone at the City, the County of San Diego, the San Diego Housing Commission, and the Regional Task Force on Homelessness.”
The County of San Diego also allocated $17.8 million in capital funds for Presidio Palms and committed $8.3 million over five years toward the necessary behavioral health supportive services for Presidio Palms residents, subject to County Board of Supervisors approval.
“Presidio Palms is a wonderful example of how we as a region are working together to bridge the gap between homelessness and housing by leveraging funding across our agencies to support the creation of affordable homes,” said David Estrella, Director of the County’s Health and Human Services Agency’s Housing and Community Development Services department.
SDHC owns and manages the property and administers the federal rental assistance for Presidio Palms residents.
“Today, Presidio Palms is a home and a source of hope for many of our previously unhoused neighbors,” SDHC President and CEO Lisa Jones said. “Reaching this point is possible because of collaboration among all levels of government as well as local organizations. We appreciate and value all the partners we collaborated with on this project as we work together for everyone in San Diego to have a home they can afford.”
As a leader in many regional initiatives to prevent and resolve homelessness, RTFH also awarded $1.1 million to support the purchase and rehabilitation of Presidio Palms.’
“Homelessness is driven primarily by a lack of affordable housing and our region’s housing crisis has left too many people without a place to live, which is why today is such an important day for San Diego,” said RTFH CEO Tamera Kohler. “Presidio Palms is not just a new community providing homes and wraparound services to people experiencing homelessness. It’s also a guiding light, the latest example highlighting what we can achieve together. RTFH is proud to partner in this effort and looks forward to more collaborative work to create more of the housing our community needs to address this crisis.”
Residents began moving into their new rental homes at Presidio Palms on May 27—less than seven months after construction began. Residents are 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 housing providers.
Presidio Palms includes on-site access to supportive services, provided by Telecare through a contract with the County of San Diego. These services include 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.
Presidio Palms is 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.
SGPA Architecture and Planning served as the architect, and LDCo was the general contractor for the rehabilitation of Presidio Palms, which included:
- 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.
- Creation of a community room and office spaces
Connect with SDHC on social media:
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Media Contact:
Scott Marshall,
Vice President of Communications
San Diego Housing Commission
619-578-7138
scottm@sdhc.org
