Changes Coming to San Diego’s Federal Rental Assistance Program

December 24, 2025

The San Diego Housing Commission (SDHC) is implementing changes to its rental assistance program that currently serves approximately 14,500 low-income families due to a significant funding shortfall. While federal funding has remained stagnant, rental costs have surged 80 percent since 2020, creating a $26. 6 million gap between available funds and actual program costs.

Who is affected

Approximately 14,500 low-income families currently receiving rental assistance in San Diego
Up to 6,000 individuals (within 1,700 families) who would lose assistance entirely without the changes
Families made up of seniors or people with disabilities
Families with work-able adults (one, two, or three or more adults)
Landlords participating in the rental assistance program

What action is being taken

SDHC is submitting the approved updates to the U.S. Department of Housing and Urban Development for approval
SDHC is collaborating with community organizations to inform families about available resources
SDHC is providing a hardship program to assist eligible families who need additional time to pay higher contribution amounts

Why it matters

This matters because it addresses a critical $26.6 million funding gap that threatens the housing stability of thousands of low-income San Diego families in one of the nation's most expensive rental markets. Without these changes, approximately 1,700 families representing up to 6,000 individuals would lose their rental assistance completely and face potential homelessness. The modifications represent a difficult but necessary balance between maintaining assistance for the maximum number of families while dealing with the reality that federal funding has not kept pace with an 80 percent increase in rental costs since 2020.

What's next

SDHC will submit the updates to the U.S. Department of Housing and Urban Development for approval
If approved by HUD, SDHC will provide multiple notices to affected families over several months
Changes would potentially be implemented in late 2026

Read full article from source: The San Diego Voice & Viewpoint