SAN DIEGO (CNS) - The San Diego City Council Tuesday approved turning a former skydiving facility in East Village into 164 affordable housing units under an agreement with Father Joe's Villages.
The city-owned building has been in flux since former Mayor Kevin Faulconer proposed turning the building into housing. The building, located at 1401 Imperial Ave., serves as the city's Homelessness Response Center.
"We're transforming city-owned property into affordable homes, because that's what this moment demands," Mayor Todd Gloria said. "By partnering with Father Joe's Villages, we're turning this underused city asset into 164 affordable apartments for people most at risk of homelessness, tackling our housing crisis head-on using every tool we've got."
In 2024, city staff issued a Request for Proposals seeking a developer to buy and turn the building into a 100% affordable housing development. Father Joe's was selected out of two respondents based on the higher number of affordable homes proposed and their track record in the development of affordable housing.
The Catholic nonprofit, the city's largest homelessness services provider, will acquire the facility for $7.9 million -- $2.9 million of which is a loan from the city. The proposed development includes 108 studios, 54 one- bedroom homes and two two-bedroom homes. All units will be income-restricted for 55 years, serving households earning between 30% and 60% of the area median income.
"Today's action moves us closer to transforming an underused building in my district into urgently needed affordable housing," said Councilman Stephen Whitburn. "I pushed to convert this site to affordable housing because that's what our city needs to reduce homelessness. I'm pleased to support Father Joe's Villages' plan to create deeply affordable, innovative housing in the heart of East Village."
The nonprofit says it plans to offer services, such as physical and behavioral health care, social supports and employment services.
"This project, and the many other affordable housing units Father Joe's Villages has built, is critical to helping people exit homelessness and find housing stability," said Deacon Jim Vargas, president and CEO at Father Joe's Villages. "We must deploy creative solutions to meet the ever-growing need, whether it be creatively reusing buildings or building new transit- friendly developments, and this site is just one such example.
"Only then will we achieve our shared goal of ensuring all can afford to work, live and raise families in our city."
San Diego bought the building in 2018 using U.S. Department of Housing and Urban Development Community Development Block Grant funding. The city is working with the San Diego Housing Commission to find a new site for the Homelessness Response Center, a sort of one-stop shop where people can find available sheltering options and get connected to programs and other services, a city statement read.
"We are excited to see this building take on a new life and provide much-needed affordable homes for San Diegans," said Economic Development Director Christina Bibler. "This isn't just about walls and roofs -- it's about giving people a real chance to feel like they belong, to thrive and build a future."
Proceeds from the finalized sale will go back into San Diego's CDBG funding -- available for housing, public infrastructure, economic development, public services and more.
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