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San Diego Housing Commission Halts Voucher Program Amid Funding Shortage

Jacob Shelton January 6, 2025

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Housing

The San Diego Housing Commission has announced the suspension of its project-based voucher program, a critical resource that has helped thousands of low-income families, seniors, and people experiencing homelessness secure stable housing. The decision, driven by a lack of available funding, has left many concerned about the future of affordable housing in the region.

A Lifeline for the Vulnerable

For people like Rachel Hayes, the program has been life-changing. After spending more than a decade living in a tent on San Diego’s streets, Hayes moved into a one-bedroom apartment in San Ysidro in June 2023.

“It was a huge life-changing experience,” Hayes said. “To have your own room and your own bathroom—it gives you a little bit of dignity. A little bit of dignity goes such a long way.”

Hayes is one of 3,700 households currently benefiting from the project-based voucher program. According to the Housing Commission, 78% of these vouchers are committed to helping individuals transition from homelessness to permanent housing.

Funding Challenges and Future Impact

The program’s suspension stems from a shortage of federal funding. “When we say we’re not issuing any more project-based vouchers, that means we don’t have the funding available to issue more,” explained a Housing Commission representative. Unlike other California cities that have implemented ballot or bond measures to create ongoing local subsidies, San Diego lacks a sustainable local funding source to supplement federal allocations. This decision could have ripple effects, not only for individuals seeking housing but also for future developments. “Without this voucher resource over the next several years, we do expect that it will impact production,” the representative said. “It’s concerning for all of us—a really tough decision to have to make.”

One such development at risk is the Midway Rising Project, which aims to provide housing solutions in San Diego. The project’s developers have not yet commented on how the program’s suspension might affect their plans.

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