San Diego

Chula Vista Secures $8.61 Million for Transformation of Palomar Motel into Supportive Housing for Homeless

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Published on October 03, 2025
Chula Vista Secures $8.61 Million for Transformation of Palomar Motel into Supportive Housing for HomelessSource: Google Street View

In a substantial boost to Chula Vista's efforts to tackle homelessness, the city has secured a significant financial injection from the state's Homekey+ program. A partnership between the city and Wakeland Housing and Development Corporation has culminated in an award of $8.61 million, aimed at repurposing the old Palomar Motel into permanent supportive housing for very low-income individuals at risk of living on the streets, according to the City of Chula Vista. The project, situated at 1160 Walnut Avenue, will undergo intense renovations to transform it into a facility with 28 units, including 20 dedicated to individuals, 7 for veterans, and one manager's unit, ensuring residents have access to critical amenities and services.

The revamp of the former motel is expected to be more than a superficial facelift, with plans for comprehensive upgrades that comprise new plumbing, a refreshed roof, enhanced fire safety systems, and the installation of kitchenettes, despite setbacks that could arise, there's an air of optimism that the construction will be wrapped up by November 2026 and full occupancy is projected for January 2027. As expressed by Rebecca Louie, Wakeland's President and CEO in a statement, per the City of Chula Vista, the organization's vision is that "everyone deserves a safe home and the support to rebuild their lives," asserting that the 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."

Chula Vista's initiative reflects a larger commitment, with Mayor John McCann praising the city's proactivity in helping homeless individuals in a statement, as per the City of Chula Vista, "Chula Vista has been a leader in helping individuals experiencing homelessness get off the streets. 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." The city's acquisition of the Palomar Motel in October 2023, followed by the competitive selection of Wakeland Housing to spearhead development, reflects a well-orchestrated strategy for social housing development.