CHULA VISTA, Calif. (CNS) - Chula Vista has been awarded $8.61 million in Homekey+ funding from the California Department of Housing and Community Development to turn the former Palomar Motel into permanent housing, it was announced Wednesday.
The former motel, located at 1160 Walnut Ave. in west Chula Vista, will be converted into studio apartments for very low-income residents experiencing or at risk of homelessness, with 20 units for individuals, seven units for veterans, and one on-site manager's unit.
"Chula Vista has been a leader in helping individuals experiencing homelessness get off the streets," Mayor John McCann said. "Winning $8.61 million in Homekey+ funds will allow us to create permanent supportive housing units for those with the greatest need for long-term housing and services."
Wakeland Housing and Development Corporation is the developer on the project. The site will need new plumbing, roof, fire safety systems, installation of kitchenettes and other upgrades.
"At Wakeland Housing, we believe everyone deserves a safe home and the support to rebuild their lives. Homekey+ funding helps us move faster toward that goal by converting the Palomar Motel into permanent supportive housing -- providing stable homes more quickly and affordably than new construction," said Rebecca Louie, Wakeland president and CEO. "This is the kind of compassionate, efficient response our communities need.Once completed, all residents will be offered free "on-site supportive services and case management tailored to the specific needs of each resident," according to a city statement.
Chula Vista purchased the Palomar Motel property in October 2023 and selected Wakeland after a competitive process.
"The Palomar Project is about more than housing those currently homeless, it's about giving families and individuals an option before homelessness," City Councilman Cesar Fernandez said. "By focusing on prevention and building strong partnerships, we're not only addressing immediate needs but also creating safer, cleaner streets and a healthier future for Chula Vista."
Homekey is a state program intended to allow governments to develop a broad range of housing types, including converting commercial properties such as the motel to permanent or interim housing.
"Turning the old Palomar Motel into permanent supportive housing means veterans and neighbors in need will finally have a safe place to call home," said Assemblyman David Alvarez, D-San Diego. "It's a smart investment that's quicker and more affordable than new construction.
"I'm pleased the state could provide this grant and proud to see the city of Chula Vista continuing to lead on expanding opportunities for housing, from supporting homeownership to creating solutions for people experiencing homelessness."
Wakeland will continue to lead development through the project's completion, expected by November 2026, with full occupancy expected by January 2027.
The project has been awarded 20 Project-Based Vouchers and seven Veterans Affairs Supportive Housing vouchers by the county to keep the revamped development affordable.
"Projects like this that connect the most vulnerable among us with the services they need and with a place they can call their own are a perfect example of a compassionate and powerful leadership that helps get people back on their feet and creates a safer community," said State Sen. Steve Padilla, D- Chula Vista. "I am proud of Chula Vista's continued leadership in this space."
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