San Diego City Council has approved a transformative plan to turn a city-owned former indoor skydiving facility in East Village into 164 units of affordable housing, aiming to address the homelessness crisis in the area.
The property at 1401 Imperial Avenue, currently functioning as the City’s Homelessness Response Center, will be sold to Father Joe’s Villages for $7.9 million. This sale includes a $2.9 million loan provided by the City.
Mayor Todd Gloria emphasized the importance of this initiative, stating, “We’re transforming City-owned property into affordable homes, because that’s what this moment demands.”
The new development will predominantly serve San Diegans most at risk of homelessness, featuring 108 studio apartments, 54 one-bedroom apartments, and two two-bedroom homes. All units are income-restricted for a period of 55 years, specifically for families earning between 30% and 60% of the area median income.
Councilmember Stephen Whitburn, representing Downtown San Diego, lauded the project, calling it a significant step in the battle against homelessness. “I pushed to convert this site to affordable housing because that’s what our city needs,” he stated. “Today’s action moves us closer to urgently needed housing in the heart of East Village.”
This project will not only provide housing but will also come with comprehensive services aimed at helping residents achieve stability. Father Joe’s Villages plans to offer physical and behavioral health care, employment support, and social services, embodying their holistic approach to addressing homelessness.
Deacon Jim Vargas, President and CEO of Father Joe’s Villages, described the project as a vital opportunity to assist people in overcoming homelessness and attaining housing stability. He stated, “We must deploy creative solutions to meet the ever-growing need—this site is just one such example.”
Acquired by the City in 2018 through Community Development Block Grant funding, the building has been dedicated to homelessness services since its purchase. However, due to the stipulations attached to the federal funding, the Homelessness Response Center must continue operating at the site until at least December 2025. Meanwhile, the City and the San Diego Housing Commission are collaborating to find alternative locations to maintain service continuity.
At present, the project remains in its early phases. Father Joe’s Villages must seek complete funding, finalize the design plans, and obtain the necessary permits prior to the commencement of construction. Once the project is completed, it will reflect a significant milestone in the city’s ongoing strategy to combat the housing crisis.
Christina Bibler, the City’s Economic Development Director, underlined the broader impact of the project, stating, “This isn’t just about walls and roofs. It’s about giving people a real chance to feel like they belong, to thrive and build a future.”
The proceeds from the property sale will be reinvested into the City’s CDBG program, which funds a variety of initiatives benefiting low- and moderate-income residents of San Diego.
Deacon Jim Vargas of Father Joe’s Villages expressed gratitude for the unanimous support from the San Diego City Council, saying, “We sincerely thank the San Diego City Council for their unanimous support. Thank you also to the Economic Development Department for their leadership and diligence in shepherding this effort from concept to approval.”
He also highlighted the importance of repurposing the existing structure for the benefit of the community, stating that they plan to employ high-performance building materials to scale the building to 15 floors, providing 164 homes of 100% affordable housing.
In addition to securing housing, future residents will benefit from the extensive array of services that Father Joe’s Villages offers, aimed at helping them achieve self-sufficiency and success.
This project, along with various other affordable housing units developed by Father Joe’s Villages, represents a crucial step toward helping individuals transition out of homelessness and attain stable housing. The organization remains committed to deploying innovative solutions to meet the growing needs of the community.
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