Multi-agency collaboration delivers permanent housing solution in record time
A former extended-stay hotel in Mission Valley has been transformed into 161 affordable apartments for San Diegans who experienced homelessness, marking a significant milestone in the region’s efforts to address the housing crisis through innovative property conversions.
The Presidio Palms apartments, located at 2087 Hotel Circle South, celebrated its grand opening earlier in June with a ribbon-cutting ceremony attended by federal, state, and local officials. The property, owned by the San Diego Housing Commission (SDHC), completed its transformation in less than seven months after construction began, with formerly homeless residents already moving into their new homes.
The $79.2 million project represents a collaborative effort between multiple government agencies and demonstrates the effectiveness of California’s Homekey program, which converts existing buildings into permanent supportive housing for individuals experiencing homelessness.
The State of California provided the largest contribution with $35 million in Homekey program funds toward the acquisition and rehabilitation. The City of San Diego and County of San Diego each contributed $17.8 million, while the Regional Task Force on Homelessness awarded $1.1 million toward the project.
Beyond the initial investment, the County committed an additional $8.3 million over five years to fund essential behavioral health supportive services. These services include light case management for housing stability, transportation assistance, and community resource referrals, as well as clinical case management featuring crisis intervention and care coordination.
The speed of the Presidio Palms conversion highlights the efficiency of the hotel-to-housing model. Unlike traditional affordable housing development, which can take years to complete, the existing hotel infrastructure allowed for a relatively quick transformation into permanent housing units.
Residents at Presidio Palms have access to on-site supportive services and receive rental assistance through housing vouchers funded by the U.S. Department of Housing and Urban Development. The SDHC helps residents pay their rent through these federal vouchers, ensuring long-term housing stability.
Since the Homekey program launched in 2020, the State of California has awarded more than $105 million to collaborative efforts between SDHC, the City, and County of San Diego. These investments have resulted in the creation of more than 600 affordable housing units with supportive services specifically designed for individuals experiencing homelessness.
The program addresses a critical need in San Diego County, where thousands of individuals remain unhoused despite ongoing efforts to expand shelter capacity and services.
The success of Presidio Palms may serve as a model for future hotel conversion projects throughout the region. The combination of rapid deployment, comprehensive supportive services, and multi-agency funding demonstrates a scalable approach to addressing homelessness through permanent housing solutions.
This month’s ribbon-cutting ceremony included remarks from U.S. Department of Housing and Urban Development Region IX Administrator William Spencer, San Diego Mayor Todd Gloria, City Council President Joe LaCava, and other key stakeholders who contributed to the project’s success.
As new residents settle into their apartments at Presidio Palms, the project stands as a testament to what collaborative governance can achieve in addressing one of the region’s most pressing challenges.
