An innovative adaptive reuse project in San Diego will soon transform a former skydiving facility into a 100% affordable housing development. On May 20^th, 2025, the San Diego City Council approved an agreement with Father Joe’s Villages, outlining the terms of sale along with future redevelopment of a City-owned site at 1401 Imperial Avenue in the East Village neighborhood in Downtown San Diego. Father Joe’s Village provides services and support for individuals experiencing homelessness, including affordable housing, health care, and employment assistance.

Father Joe’s Village will acquire the facility for $7.9 million, of which $2.9 million will be structured as a loan from the City. To document the value of the interest to be conveyed, KMA prepared the Section 52201 Economic Opportunity Report on behalf of the City of San Diego. The 164-unit development will provide housing for a range of low-income levels, while dedicating 50% of the units for individuals at-risk of or currently experiencing homelessness. The units will be income-restricted for 55 years.

Mayor Todd Gloria commented on the project, “We’re transforming city-owned property into affordable homes, because that’s what this moment demands. By partnering with Father Joe’s Villages, we’re turning this underused city asset into 164 affordable apartments for people most at risk of homelessness, tackling our housing crisis head-on using every tool we’ve got.”