By Gary Warth
March 17, 2026
CHULA VISTA – Seniors, veterans, families and others who may be facing homelessness will have more housing options in Chula Vista sometime in the future as the city moves forward with two projects.
The conversion of a former motel into housing for 27 homeless households is expected to be completed by the end of the year and a recent action by the City Council has kept a long-planned 96-unit affordable housing project alive.
The 96-unit project at 610 Paseo Del Rey has been in the works since the city committed $3.3 million in federal HOME Investment Partnership Program funds and $700,000 in state Low and Moderate Income Housing Asset funds in June 2024.
That original funding approval was set to expire this June if the project did not secure full financing. To keep the project alive, the City Council approved a new resolution extending the deadline to March 17, 2028, as part of its consent calendar at its March 17 meeting.
While the project has faced delays, developer Wakeland Housing and Development Corp. has taken steps to improve its chances of moving forward. After an unsuccessful bid for Low-Income Housing Tax Credits last year — a key financing source for affordable housing — the developer revised the project to reduce costs and improve competitiveness for future funding rounds.
Wakeland is expected to reapply for tax credits in spring 2026 and has already submitted building permit applications to the city.
The development would include:
- 48 units of permanent supportive housing for individuals and families experiencing homelessness
- 47 units for low-income households
- One manager’s unit
The new housing could help continue a positive trend among homeless families. The 2025 point-in-time count of homeless people saw a 69% reduction from the previous year in homeless families living without shelter. The annual count also saw an overall 7% drop in homelessness countywide.
Separately, the city is moving ahead with the conversion of the former Palomar Motel into permanent supportive housing.
The project, now called Palomar Point, is supported by $8.61 million in state Homekey+ funding and will create 27 studio apartments for extremely low-income households, including seven units reserved for veterans experiencing homelessness.
The development also includes 20 project-based vouchers and seven Veterans Affairs Supportive Housing (VASH) vouchers provided by the County of San Diego. Residents will receive on-site supportive services and case management.
Construction is expected to be completed by the end of 2026, with full occupancy anticipated in early 2027.
As with unsheltered homeless families, the additional housing for veterans could continue a positive trend. The 2025 point-in-time count showed the number of unsheltered homeless veterans down 25%, and the overall data from 2025 shows 20 veterans were housed for every 10 who fell into homelessness for the first time.
The 2025 point-in-time count found 470 homeless people living outdoors in Chula Vista and the Sweetwater area, a 6.6% reduction from 2024. Another 144 people were counted in area shelters in 2025.
City reports presented alongside the housing updates highlighted both progress and ongoing gaps.
Since 2020, Chula Vista has built 7,075 housing units toward its state-required Regional Housing Needs Allocation (RHNA) but still needs more than 5,500 additional units — primarily in very low-, low- and moderate-income categories.
Other updates include:
- 115 people served in the city’s emergency bridge shelter, with 23 moving into permanent housing
- 28 households receiving rental assistance and 11 assisted with rental arrears
- Eight first-time homebuyers supported through city programs
The city also secured $500,000 in state funding for a local housing trust fund, matched with city dollars to create a $1 million pool for future affordable housing. An additional $1.12 million in Prohousing Incentive funding is expected following the city’s recent state designation.
