San Diego County Moves Forward on 82 New Permanent Supportive Homes — An Effective Anti-Homelessness Strategy Threatened by Proposed Federal Cuts in Trump Budget
(May 6, 2025) San Diego, CA — Today the County of San Diego, led by acting chair Terra Lawson-Remer, authorized a new permanent supportive housing project for individuals with serious behavioral health needs — approving a $12.4 million funding commitment that will strengthen the County’s application for state Homekey+ dollars to bring the project to life.
If successful, the proposal will deliver 82 units of deeply affordable, service-supported housing at 7798 Starling Drive in the City of San Diego — serving people experiencing homelessness, particularly those with complex behavioral health conditions, and providing on-site care to support recovery and long-term stability.
However, Supervisor Terra Lawson-Remer warned that the housing model this project relies on is at risk if Trump’s proposed federal budget becomes law.
“This vote shows how hard we’re working to bring state and federal dollars into our community — but if Washington guts the very programs that make this model work, there’s nothing left to build,” said Lawson-Remer. “These cuts would slam the brakes on life-saving housing across San Diego.”
Project Highlights:
- 82 Permanent Supportive Housing Units: Designed for people experiencing homelessness, with priority for veterans and those with complex behavioral health needs.
- On-Site Support Services: Including case management, behavioral health care, and housing stabilization.
- Leveraged Investment: The County’s $12.4M is expected to unlock $35M in state Homekey+ funding, $10M from the City of San Diego, and 40 federal Veterans Affairs Supportive Housing (VASH) vouchers.
The Starling Drive proposal is a partnership between the County of San Diego, the San Diego Housing Commission, and the City of San Diego. The County’s conditional funding is expected to help unlock:
- $35 million in state Homekey+ funds
- $10 million from the City of San Diego
- 40 federal Veterans Affairs Supportive Housing (VASH) vouchers, which may support a subset of eligible residents
If the application is approved, the project would become a model for permanent supportive housing — but only if federal housing programs like Section 8 and VASH remain intact. However, the Trump Administration’s proposed budget would:
- Eliminate Section 8 housing vouchers
- Slash federal rental assistance by 40%
- Cap housing aid for low-income adults at just two years
Since 2021, the County has increased affordable housing production fivefold and committed public land for more than 10,000 homes — with San Diego County’s homebuilding output surpassing state housing goals, well ahead of schedule. The Starling Drive project is the fourth Homekey+ development advanced through a partnership between the County, City of San Diego, and San Diego Housing Commission.
“This is not just about buildings — it’s about lives,” said Lawson-Remer. “We can’t let Washington turn its back on veterans, families, and people struggling with mental illness. We need the federal government to be our partner — not our obstacle.”