Chula Vista Receives $8.6 Million to Convert Palomar Motel into Low-Income Housing
- Media
- Oct 8
- 2 min read
Chula Vista has been awarded $8.61 million in Homekey+ funding from the California Department of Housing and Community Development for low-income units.
Officials plan to turn the former Palomar Motel into permanent housing, they said Wednesday.
The motel, located at 1160 Walnut Avenue, will be converted into studio apartments for very low-income residents experiencing or at risk of homelessness, with 20 units for individuals, seven units for veterans and one on-site manager’s unit.
"Being awarded the funding will allow Chula Vista to create permanent supportive housing units for those with the greatest need for long-term housing and services.”—Mayor John McCann
Wakeland Housing and Development Corporation is the developer on the project. The site will need several upgrades including a new roof, plumbing, fire safety systems, kitchenettes.
“This is the kind of compassionate, efficient response our communities need.”—Rebecca Louie, Wakeland President and CEO
Once completed, all residents will be offered free on-site supportive services and case management as needed, according to a city statement.
Chula Vista purchased the Palomar Motel property in October 2023 and selected Wakeland after a competitive process.
“The Palomar Project is about more than housing those currently homeless, it’s about giving families and individuals an option before homelessness. By focusing on prevention and building strong partnerships, we’re not only addressing immediate needs but also creating safer, cleaner streets and a healthier future for Chula Vista.”—Councilman Cesar Fernandez
Homekey is a state program to support the development of a broad range of housing, including converting commercial properties such as the motel to permanent or interim housing.
“Turning the old Palomar Motel into permanent supportive housing means veterans and neighbors in need will finally have a safe place to call home. It’s a smart investment that’s quicker and more affordable than new construction.”—said Assemblyman David Alvarez, D-San Diego
Wakeland will continue to lead development through the project’s completion, expected by late 2026, with full occupancy set the following January.
The development has been awarded 20 Project-Based Vouchers and seven Veterans Affairs Supportive Housing vouchers by the county to keep the revamped spaces affordable.
By City News Service | Oct. 1, 2025
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