Pacific Village, a former motel being converted into 62 affordable studio apartments, with the help of state Homekey+ funding. (File photo courtesy of the San Diego Housing Commission)
The state on Thursday awarded $32.4 million to San Diego for the purchase of short-term rental housing, which is set to be converted to affordable apartments for homeless people.
The state Homekey+ funds were awarded to the San Diego Housing Commission. When combined with money from the city and county of San Diego, the funding will allow for the affordable housing plan to move forward at Starling Place, 7798 Starling Drive in Birdland.
“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,” said San Diego Mayor Todd Gloria.
Plans for the property include 80 affordable rental apartments – 40 for homeless veterans and 40 for San Diegans with mental health issues or substance use disorders who are at risk of becoming or are homeless. There will also be a 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 Councilman Raul Campillo, who represents the district where Starling Place is located.
San Diego has pledged $11.5 million in Community Development Block Grant funds toward the project, added to $12.5 million from the county. The county money includes $7 million in capital funds and $5.5 million for ongoing operating expenses.
The state, in a news release, cited the Starling Place’s property’s proximity to public transportation, and a hospital and pharmacy, as reasons to support the selection. The site also is two and a half miles from a Department of Veterans Affairs Clinic. The VA will collaborate with county Behavioral Health Services to offer support to veterans on-site.
“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. “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.”
The existing property on Starling was renovated in 2022, converting an office building to 90 residential units that are currently being used as short-term vacation rentals.
The housing commission also added 40 Veterans Affairs Supportive Housing Project-Based Vouchers to assist veterans at the property to pay their rent. The agency will oversee the conversion of the property, and will own and operate it once construction is complete.
Another recent local Homekey development, the 62-unit Pacific Village complex, opened in the Midway two weeks ago. The county’s partnership with the city and housing commission has resulted in 688 supportive units across seven developments.
With the latest round of awards, Homekey+ has allocated $540.4 million to support 32 projects that will create 1,517 affordable homes with supportive services throughout California. Of these homes, 395 are reserved for veterans who lack shelter or at risk of becoming homeless due to behavioral health challenges.
City News Service contributed to this report.
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