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Housing Commission says it will stop awarding new project‑based vouchers amid federal funding shortfalls
Summary
The San Diego Housing Commission told the Housing Authority it will continue rental assistance to current voucher holders but pause awarding new project‑based vouchers because HUD funding for vouchers is projected to fall in 2025.
The San Diego Housing Commission's president and CEO, Lisa Jones, told the Housing Authority Jan. 14 that the commission will continue paying rental assistance to about 17,000 families but will not award new project‑based vouchers (PBVs) because projected HUD funding will not support both current commitments and new awards.
Jones said the commission has committed about 3,700 PBVs (roughly 22% of its allocation) and noted the average rent subsidy has risen about 57% since FY2020. She said the commission received notice from HUD that funding for housing choice vouchers will decrease effective Jan. 1, 2025, and that final federal budget authority often arrives months after the calendar year starts, creating uncertainty for planning.
"Because these are long term contracts, when a family moves on the project based voucher remains with the housing unit to assist the next family," Jones said, explaining why PBVs help finance affordable housing projects. Nonetheless, she said the Housing Commission has no choice but to pause awarding new PBVs for the near term while it works through budget adjustments.
Council and public questions focused on whether local revenue sources could substitute for federal shortfalls and how long the pause might last. Jones said local, ongoing revenue dedicated to rental subsidy would mimic PBVs' effect by creating long-term financeable commitments; she and council members pointed to Los Angeles and Bay Area measures as models for local matching funds.
What happens next: The commission will develop budget options and report back with detailed scenarios. Jones said existing PBV contracts and current voucher recipients will continue to receive assistance; staff estimated the commission is not likely to issue a new Notice of Funding Availability for several years unless HUD funding improves.
Clarifying details: The commission said it administers about $275 million annually for vouchers and that roughly 70,000 households are on its waiting list; it will continue assisting current participants while pausing new PBV awards.
