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Council waives municipal code to allow one‑time $8M Housing Trust Fund transfer for shelter programs
Summary
City Council approved an ordinance waiving municipal code restrictions so that $8 million from the Affordable Housing Fund (housing trust monies) can be used one‑time to sustain city shelter programs in FY25; the vote was 8–1 with one councilmember opposed.
The San Diego City Council approved an ordinance on July 23 authorizing a one‑time waiver of municipal code provisions so $8 million in Housing Trust Fund monies may be used to support city shelter programs included in the FY25 Affordable Housing Fund Plan.
Housing Commission representatives explained the action is intended to backfill funds and allow the Housing Commission and city to deliver shelter programs approved in the adopted budget. "These waivers will allow the one‑time use of housing trust fund monies in accordance with the council's approvals from last month," said Sukiet Alsandro, the Housing Commission's executive vice president and CFO.
The Independent Budget Analyst clarified that waiving these code sections is necessary to implement the FY25 budget and that the action is distinct from other shelter contracts and lease items heard on separate agendas. "This action would allow affordable housing funds to backfill for the $8,000,000 withheld from the city's general fund allocation," Amy Lee of the IBA’s office told the council.
Public commenters were split: housing advocates and the San Diego Housing Federation urged the council to approve the waiver to maintain shelter capacity in the near term while calling for a long‑term, locally controlled revenue source for affordable housing. Other speakers criticized diverting locally generated affordable‑housing production dollars and asked for explicit performance targets tying shelter funds to outcomes that move people into permanent housing.
Councilmembers acknowledged the trade‑off between using local affordable housing resources for immediate homelessness needs and preserving funds for long‑term affordable housing production. Councilmember Lee moved staff’s recommendation; the motion passed 8–1, with Councilmember Moreno voting no and speaking in opposition to repeating one‑time reallocations from production funds.
The ordinance enables the Housing Commission to proceed with the planned FY25 shelter allocations; staff and public advocates said the council must pursue a stable revenue source to avoid repeating this trade‑off in future budgets. The IBA and housing advocates recommended tracking outcomes for people who enter shelters using these funds and exploring using waiver‑permitted funds for supportive services that facilitate exits to permanent housing.
