San Diego Plans to Sell Homelessness Response Center for Affordable Housing

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Conceptual design of an affordable housing complex in San Diego

News Summary

The City of San Diego has announced plans to sell the Homelessness Response Center (HRC) on Imperial Avenue to Father Joe’s Villages for developing a new 164-unit affordable housing complex. The sale, part of efforts to tackle the homelessness crisis, is expected to be reviewed by the City Council on May 20. Currently, the HRC serves as a key support hub providing vital resources for unsheltered residents. A suitable alternative location for the HRC is still being sought as the city aims to repurpose the site for permanent housing.

San Diego – The City of San Diego has announced plans to sell the Homelessness Response Center (HRC) located on Imperial Avenue to Father Joe’s Villages. The transaction is aimed at facilitating the development of a new 164-unit affordable housing complex at the site.

Currently, dozens of individuals line up daily at the HRC to access vital resources and check for available shelter beds. The HRC serves as a key support hub for unsheltered residents, offering assistance that includes clothing, food, mental health services, substance abuse treatment referrals, and legal aid.

The City Council is scheduled to review a Disposition and Development Agreement (DDA) related to the sale on May 20. This agreement is with a newly formed non-profit, 1401 Imperial LP, which was established just days prior on May 8 and is led by Deacon Jim Vargas of Father Joe’s Villages. A city spokesperson has indicated that a new location for the Homelessness Response Center has not yet been determined, but efforts are ongoing to identify a suitable alternative.

The city initiated the sale process back in 2023, requesting that prospective buyers, including Father Joe’s Villages, commit to using the property for affordable housing. This decision aligns with the city’s ongoing efforts to address the homelessness crisis rather than responding to its current $258 million budget deficit, as stressed by San Diego’s Economic Development Director, Christina Bibler.

The HRC has been under city ownership since 2018 when it was purchased for $7.3 million based on an appraisal that has since been criticized for being overly optimistic regarding the property’s value for its initially intended use as an indoor skydiving facility. According to a 2022 auditor’s report, the building’s value post-acquisition was similar to the purchase price, which undermines claims that the city secured a good financial deal.

Transforming the HRC site into permanent housing represents a strategic move in line with the city’s goals for real estate utilization. The potential sale amount has not been disclosed, and the plan is seen as a proactive step towards reducing the city’s homelessness crisis.

In addition to the sale, the mayor’s draft budget indicates a budget cut for the HRC, which suggests a gradual transition of operations to other facilities as the city shifts its focus on converting the HRC into affordable housing.

Public comments on this proposal will be accepted during the City Council meeting on May 20, coinciding with the final budget considerations set to take place in June. This meeting will offer an opportunity for community members to express their opinions on the proposed sale and the future of homelessness services in San Diego.

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Additional Resources

HERE San Diego
Author: HERE San Diego

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