California Construction News staff writer
A former indoor skydiving facility in San Diego’s East Village will be converted into 164 affordable housing units following a unanimous vote by City Council to approve the sale and redevelopment of the site.
The city-owned building at 1401 Imperial Ave., currently used as the Homelessness Response Center, will be acquired by Father Joe’s Villages for $7.9 million and transformed into fully affordable housing. The agreement includes a $2.9 million loan from the city.
“We’re transforming City-owned property into affordable homes, because that’s what this moment demands,” Mayor Todd Gloria said in a statement. “By partnering with Father Joe’s Villages, we’re turning this underused City asset into 164 affordable apartments for people most at risk of homelessness.”
The new development will include 108 studio apartments, 54 one-bedroom units and two two-bedroom homes. All units will be reserved for residents earning between 30% and 60% of the area median income and will remain income-restricted for 55 years.
Father Joe’s Villages was selected through a competitive request-for-proposals process last year, beating one other applicant. The nonprofit was chosen based on the higher number of proposed housing units and its experience developing affordable housing projects.
“This project, and the many other affordable housing units Father Joe’s Villages has built, is critical to helping people exit homelessness and find housing stability,” said Deacon Jim Vargas, the organization’s president and CEO. “We must deploy creative solutions to meet the ever-growing need.”
Plans for the site also include wrap-around support services such as physical and behavioral health care, employment assistance and social supports.
The City purchased the building in 2018 using federal Community Development Block Grant (CDBG) funds. In coordination with the San Diego Housing Commission, the site has operated as a one-stop center connecting people experiencing homelessness with available shelter and resources.
Because federal funding was used for the original purchase, the Homelessness Response Center must continue operating on the site until at least December 2025. The City is working with service providers to identify a new location for the center after the sale.
“Today’s action moves us closer to transforming an underused building in my district into urgently needed affordable housing,” said Councilmember Stephen Whitburn, who represents the area. “This is what our city needs to reduce homelessness.”
With Council approval secured, Father Joe’s Villages will now begin the process of securing funding, completing design plans and applying for necessary permits.
“Transforming this facility isn’t just about bricks and mortar,” said Christina Bibler, the City’s economic development director. “It’s about giving people a real chance to feel like they belong, to thrive and build a future.”
Proceeds from the sale will be reinvested into the CDBG fund, supporting projects that benefit low- and moderate-income San Diegans, including housing, infrastructure and neighborhood revitalization efforts.
