October 23, 2025

State Awards $32.4 Million in Homekey+ Funds to San Diego

PREVIOUS STATE FUNDS TOTALING OVER $105 MILLION CREATED MORE THAN 600 AFFORDABLE HOMES IN SAN DIEGO FOR PEOPLE EXPERIENCING HOMELESSNESS

SAN DIEGO — Building upon the successful investment of state funds to create hundreds of new, affordable rental homes since 2020 for unhoused San Diegans, the State of California has awarded $32.4 million in Homekey+ funds to the San Diego Housing Commission (SDHC), in collaboration with the City of San Diego and the County of San Diego.

These State funds, combined with funding from the City and the County, would enable SDHC to purchase a single-room occupancy property currently operating as short-term vacation rentals and convert it into affordable rental apartments with access to supportive services for households experiencing homelessness.

“This $32.4 million grant from the state will help us move veterans and people experiencing mental illness off the streets and into safe, stable homes — creating the foundation for recovery, stability, and a better life,” San Diego Mayor Todd Gloria said. “It’s another example of how we’re expanding housing opportunities and delivering on our commitment to ensure every San Diegan has a place to call home.” 

Known as Starling Place, the property at 7798 Starling Drive in City Council District 7 would be transformed into 80 affordable rental apartments, consisting of 40 units for veterans experiencing homelessness and 40 units for San Diegans with mental health or substance use disorder challenges who are at risk of or experiencing homelessness. There will also be one manager’s unit.

“Starling Place delivers the exact type of housing San Diego needs most: affordable homes for veterans and others experiencing or at risk of homelessness, paired with supportive services to help them stay housed,” said City Councilmember Raul Campillo, who represents Council District 7, including Starling Place. “This project shows what’s possible when the City, County, and State work together in strong collaboration.”

The City is investing $11.5 million in Community Development Block Grant funds toward SDHC’s purchase and rehabilitation of Starling Place. The County is investing $12.5 million toward the project, consisting of $7 million in capital funds and $5.5 million for ongoing operating expenses, including support for the non-veteran households.

“Our region is making meaningful progress on affordable housing solutions that reach our most vulnerable residents,” said County Board of Supervisors Vice Chair Monica Montgomery Steppe, who represents Supervisorial District 4, which includes Starling Place. “I’m proud that San Diego is once again stepping up to meet this need, and doing so in a location that offers strong access to transit, services, and opportunity.”

“This $32.4 million award is great affordable housing news, especially following just weeks after we all gathered for the opening of our newest regional Homekey development, the 62-unit Pacific Village complex in the Midway,” said Dr. Kimberly Giardina, the County of San Diego’s Deputy Chief Administrative Officer for the Health and Human Services Agency. “Our partnership with the City and San Diego Housing Commission has now resulted in 688 supportive units across seven developments focused on positively changing people’s lives.”

SDHC has committed 40 Veterans Affairs Supportive Housing (VASH) Project-Based Vouchers to assist veterans at the property to pay their rent. The U.S. Department of Veterans Affairs (VA) San Diego Healthcare System will provide supportive services for the veterans at Starling Place in conjunction with the housing vouchers. SDHC also identified this property for the proposed purchase, is completing necessary due diligence and predevelopment activities, will oversee the rehabilitation of the property, and will own and operate the property when it is completed.

“An affordable, stable home of your own is the foundation that provides a better opportunity to thrive in other areas of life, such as work, school or community connection,” SDHC President and CEO Lisa Jones said. “Starling Place will provide that foundation for our unhoused neighbors. Thank you to the State, County, City and our partners at the U.S. Department of Veterans Affairs and U.S. Department of Housing and Urban Development for working together with us to make this opportunity possible.”  

Starling Place is one of 16 projects statewide to which the state has awarded $251.8 million in Homekey+ funds to create 707 permanent supportive homes for people at risk of or experiencing homelessness, including veterans.

Homekey+ helps support the development of permanent supportive housing for veterans and individuals at risk of or experiencing homelessness and with mental health or substance use challenges. It utilizes funds voters approved in March 2024 through the Behavioral Health Infrastructure Bond Act, part of Proposition 1.

Previously, through the State’s Homekey program, SDHC collaborations with the City, the County and additional partners were awarded more than $105 million to create 608 new permanent affordable rental homes with supportive services for people experiencing homelessness. The final property to be completed with those funds, Pacific Village, celebrated its grand opening on October 9.

# # #

Media Contacts:
Office of Mayor Todd Gloria, City of San Diego
MayorPress@sandiego.gov 

Office of City Councilmember Raul Campillo, City of San Diego
CFriedman@sandiego.gov

Office of County of San Diego Board of Supervisors Vice Chair Monica Montgomery Steppe
Ariel.Gibbs@sdcounty.ca.gov

County of San Diego: Tim.McClain@sdcounty.ca.gov  

San Diego Housing Commission: ScottM@sdhc.org