Affordable housing in Mission Valley ready for residents, some of them coming from shelters ...Middle East

Officials on Thursday celebrated the opening of Presidio Palms in Mission Valley, a 161-unit affordable housing complex. New residents, some of them from San Diego homeless shelters, will be moving into the subsidized apartments, which have kitchens and bathrooms. They also will have access to case managers on-site.

San Diego Mayor Todd Gloria said he would continue to work to secure Housing Assistance Payment Contracts, which provide rent subsidies through the U.S. Department of Housing and Urban Development.

“I’m proud that the vast majority of the people who reside at Presidio Palms are coming from our city-funded shelter system,” Gloria said, while noting that 30% of the system is funded with HAP dollars.

San Diego Housing Commission Vice President of Communications and Government Relations Scott Marshall said via email that Presidio Palms residents will have incomes at or below 30% of San Diego’s area median income — around $2,900 a month for one person.According to Marshall, if a resident is able to work, they will need to contribute 30% of their income towards rent or a minimum rent amount — $400 per month for a single adult or $650 per couple — depending on which sum is larger.

Elderly residents will contribute 28.5% of their income towards rent, he said, and if they do not have income the voucher will cover the entire sum.

According to the commission’s Fiscal Year 2026 Budget Report, the agency projects a $16.9 million gap between HUD funding for rental assistance and their rental assistance payment obligations — or approximately 947 subsidized families. SDHC plans to use HUD reserves to cover the gap — a limited, diminishing resource.

In fiscal year 2026, the commission plans to spend $60.5 million in non-recurring federal, state and local funds to acquire affordable housing properties. The use of these funds is contingent on the state’s Homekey+ program and a $45 million, three-year state grant in its second year.

An extended-stay hotel was converted into Presidio Palms, HUD Regional Administrator William Spencer said.

“We are aligning federal resources with locally driven solutions because no one understands the needs of San Diego better than the people who live and serve here,” Spencer said. According to Spencer, HUD has $107 million earmarked for rent assistance at Presidio Palms over the next 20 years.

Project-based vouchers constitute this funding, which provide rental assistance to persons living in specific units, according to HUD’s website.

Gloria said San Diego County partners are funding behavioral health care at Presidio Palms.

More than $8 million for supportive services comes from county funding, said David Estrella, director of housing and community wellness services for San Diego County’s Housing and Community Development Services agency.

Estrella said the county has allocated an additional $17.8 million for Presidio Palms — funding from the American Rescue Plan Act, a one-time stimulus from the federal government after the COVID-19 pandemic.

“By assisting with the creation of affordable housing and providing crucial supportive services, we are improving the health of future residents, creating a safe and stable living environment and cultivating opportunities,” Estrella said.

Kevin Bussett, a senior architect at SGPA Architecture and Planning, said that renovations required dealing with a building not designed for permanent occupancy. For instance, garbage disposals and bathroom drains were added to all 161 units. “They’re simple fixes, but it’s difficult because you have to multiply them,” he said.

According to Yvette Escalante Clark, architect and project manager, work on Presidio Palms began in January 2024.

Permitting for the project took three months, compared to six months on an average project, Clark said. Permit Now, a program Gloria established by executive order that expedites the creation of affordable housing and emergency shelters, cut down the wait time, Bussett said.

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