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Council approves $593,000 CDBG amendment to support Starling Place Homekey Plus acquisition
Summary
The council approved a first amendment to a Homekey Plus CDBG subrecipient agreement to transfer roughly $593,000 to support acquisition of Starling Place, a project awarded $34.4 million from the state HCD that aims to create 80 supportive housing units; the vote was unanimous 8–0.
The San Diego City Council on Jan. 26 approved a first amendment to the Homekey Plus CDBG subrecipient agreement that transfers roughly $593,000 in Community Development Block Grant (CDBG) funds to support the acquisition of the Starling Place project.
Michelle Marano, assistant deputy director with the Economic Development Department, described the Starling Place partnership as a joint effort among the San Diego Housing Commission, the City of San Diego and the County of San Diego to acquire and rehabilitate a property at 7798 Starling Drive in the Serra Mesa community. Marano said the Homekey Plus award from the California Department of Housing and Community Development (HCD) totals $34,400,000 for the acquisition.
"These include authorizing the mayor or designee to negotiate and enter into the First Amendment to the agreement, transferring just over $593,000 of CDBG funds from the Housing Commission's affordable housing NOFA to the Homekey Plus program, and authorizing the chief financial officer to expend the $593,000 approximate amount for Starling Place," Marano told the council.
Staff said the Starling Place conversion will create 80 affordable homes with supportive services and that county funding will contribute operational, capital and wraparound social services. An acquisition closing date was described as anticipated in late February.
Public commenters raised concerns about accountability in homelessness programs and questioned whether Homekey projects are audited and monitored for outcomes. Andrea Ebbing and other speakers urged transparency about capital stacks, wraparound services and oversight.
Councilmember Whitburn moved the staff recommendation and Councilmember Foster seconded. The clerk recorded the vote as unanimous 8–0 with Councilmember Campeo absent.
Council staff said the action reallocates existing local CDBG funds to ensure the Starling Place acquisition can move forward with the state Homekey Plus award and allows the Housing Commission flexibility to shift less-restricted funding to other project costs, such as potential solar installations to reduce operational expenses.
