In a move that poses new challenges for housing development for low-income and homeless residents in San Diego, the San Diego Housing Commission has announced it will no longer issue vouchers for new housing projects. The decision comes as the organization grapples with a shortfall of federal funding, which has left the voucher program financially unsustainable. NBC San Diego reports that the Commission has helped thousands of low-income families, but with funds depleted, they cannot continue the program.
The conclusion of this voucher initiative is expected to impact not just the vulnerable populations it aimed to serve but also the housing production capacity of the city for years to come. According to an interview with the commission's CEO Lisa Jones, Voice of San Diego reported, "We don’t have vouchers to address new needs right now." This halt is especially concerning for projects like the Midway Rising development, which had anticipated utilizing 200 project-based vouchers to finance a portion of its affordable units.
Financial strains have been escalating. The agency spent $282.3 million on rent last fiscal year, exceeding by nearly $7 million the federal funding it received. Over the last five years, the commission has issued around 1,670 project-based vouchers, a third of which went to families receiving rental assistance for the first time. Such vouchers were pivotal in doubling the city's supportive housing supply for previously homeless individuals. Ryan Clumpner, Vice Chair of the Housing Commission, remarked on the importance of these vouchers, noting that their commitments to project-based solutions have quadrupled over the past decade.
The impact of pausing the voucher program was exemplified by the story of Rachel Hayes, who, after a decade of homelessness, found solace in a one-bedroom apartment with the assistance of a project-based voucher. "It's given me the foundation to rebuild my life," Hayes told Voice of San Diego, highlighting the personal significance of the program. While the future of housing subsidies in San Diego remains uncertain, city officials and developers are tasked with finding alternative paths to meet affordable housing commitments without the voucher resource that had been a cornerstone of housing strategies.
Despite these challenges, Charles Schmid, CEO of Chelsea Investment Corp., the affordable housing partner for the Midway Rising project, remains optimistic. According to Voice of San Diego, Schmid stated a commitment to delivering the promised affordable units regardless of the voucher situation. Meanwhile, the San Diego Housing Commission is exploring other avenues to support housing development, including potential collaboration with the county on rental subsidies tied to the Proposition 1 behavioral health reform measure.
