Father Joe’s Villages aimed to break ground this year on a pair of affordable housing complexes in downtown San Diego, each set to house over 100 apartments.
However, the nonprofit is delaying construction after facing uncertainty with federal funding from the U.S. Department of Housing and Urban Development (HUD).
Deacon Jim Vargas, the group’s president and CEO, expressed concerns about the grant, stating, “I’m hoping that this will be resurrected somehow. But the reality is that right now we’ve been told that’s not going through.”
The landscape of homelessness funding is notoriously unstable, with California creating new budgets annually.
This instability makes it challenging for service organizations to plan long-term as the San Diego City Council contemplates spending overhauls amid a budget deficit.
The situation is compounded by shifting directives from the White House, including a temporary freeze on millions earmarked for homelessness initiatives, leaving government aid particularly unreliable.
Federal funding is crucial for local leaders addressing homelessness in San Diego, where the city currently allocates over $95 million from federal sources to housing vouchers alone.
This amount represents more than 40% of the entire homelessness budget.
Even if these funds remain untouched, potential staffing cuts at HUD and other agencies could hinder the distribution and oversight of necessary resources.
Despite the challenging climate for government aid, there has been an uptick in private donations, allowing several local projects reliant on philanthropy to continue moving forward.
The Salvation Army recently completed fundraising for approximately $86 million to develop a large complex in downtown San Diego.
Named The Rady Center after donors Ernest and Evelyn Rady, the new structure will include over 100 shelter beds, a health clinic, an updated food pantry, and permanent housing for low-income residents.
This new facility will replace the organization’s existing two-story building on-site.
Gentry Jeffries, a member of The Salvation Army, credited the organization with helping him escape homelessness, stating, “This campus really provided that kick for me to continue my recovery.”
He emphasized the opportunity for anyone facing homelessness who is genuinely committed to making a change.
Another noteworthy initiative comes from the nonprofit Townspeople, which launched a program late in 2023 aimed at helping homeless residents find roommates.
Melissa Peterman, Townspeople’s executive director, highlighted the expensive rental market in San Diego, saying, “I can’t afford housing on my own. Why not pair people up?”
So far, the effort has successfully housed 136 individuals, including 18 children.
Initially relying on rented units, Townspeople recently received a beneficial opportunity when a leader from the Jewish Community Foundation contacted them about a donor willing to buy a house for the organization.
As a result, Townspeople purchased a two-bedroom home in San Diego’s El Cerrito neighborhood, with two men moving in just this week.
Plans are also in place to convert the garage into an accessory dwelling unit and install a pre-made tiny home in the backyard.
Peterman expressed gratitude toward the donor, saying, “Whoever they are, we are grateful.”
On the other hand, the progression of Mayor Todd Gloria’s philanthropic initiative, “San Diegans Together Tackling Homelessness,” appears uncertain.
Announced in early 2024, the initiative aimed to raise hundreds of millions of dollars for homelessness.
More than a year later, however, the fundraising campaign has only amassed about $1.3 million.
Additionally, the initiative’s previous head, former Chief Operating Officer Eric Dargan, was fired and is now suing the city for alleged discrimination.
The campaign has recently transitioned leadership to Steve Cushman, a San Diego businessman and Housing Commission board member.
Cushman noted, “It’s a work in progress,” as he works to refine the advisory board structure to prevent voting deadlocks.
While he considers future changes, he plans on meeting with Mayor Gloria to discuss the overall vision for the initiative.
Cushman is also involved with several charitable foundations and stressed the need for these organizations to dedicate more resources toward helping the homeless.
“Philanthropy is gonna have to step up,” he asserted.
The demand for such resources may hinge on the overall health of the economy.
While current donor levels appear stable, tariffs could influence residents’ capacity to give, according to Drew Moser, executive director of The Lucky Duck Foundation, a prominent organization focused on alleviating homelessness.
Moser remarked, “We haven’t received any 911 calls yet, so to speak, from homeless service providers that are in dire need of funding.”
However, he expressed skepticism about philanthropy being able to compensate for lost federal funding should it occur.
Other nonprofit leaders echoed this sentiment, warning that a significant reduction in government aid could be disastrous for vulnerable populations.
Vargas of Father Joe’s cautioned, “If we’re not able to reach out and help these individuals, they’re not only going to suffer, but they’re going to be out there on the streets, and that’s not going to be good for the community.”
Father Joe’s currently receives numerous donations and aims to begin construction on the two affordable housing complexes by the first half of 2026.
One complex will be situated at the intersection of Commercial and 17th streets, carrying a construction budget of $69.5 million.
The second will be located at 16th Street and Island Avenue, estimated to cost $65 million.
The once-promised federal grant would have provided $7.5 million, while leaders anticipate monthly rents for the new apartments will range from $750 to $1,100.
Operating costs for the projects are still being determined.
image source from：https://www.sandiegouniontribune.com/2025/04/13/with-federal-aid-for-homelessness-in-question-can-philanthropy-fill-the-gap/
