By Macy Meinhardt, V&V Staff Writer, CA Local News Fellow
Federal shakeups in public agencies nationwide have hit locally, including the San Diego Housing Commission.
“There’s a lot going on and there’s a lot of confusing information that’s coming out of the federal government that seems to change from day to day,” said Lisa Jones, CEO of the San Diego Housing Commission.
For now, key programs like rental assistance remain intact, however contract renewals for homeless programs could be at risk. The public agency has also had to quietly scale back on public signaling of diversity, equity, and inclusion (DEI) efforts under new federal executive orders.
San Diego Housing Commission, which relies on federal funding for 50% of its services, provides rental assistance to over 17,000 households in the city of San Diego. Administering homeless services and supporting affordable housing development are also core components of the commission.
On Jan. 27, the Federal Office of Management and Budget announced a temporary freeze to all forms of federal financial assistance, pending a review to see if it is “consistent” with new presidential policies.
New policies include President Trump’s executive order to end “radical” and “wasteful” government DEI programs.
“The use of Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies is a waste of taxpayer dollars that does not improve the day-to-day lives of those we serve.” the Jan.27 memo stated, issued by acting Director of OMB, Matthew J. Vaeth.
This action locked local housing agencies, including SDHC, out of their payment portals for 24 hours, days before rent for thousands of Section 8 households was due.
“It was a rough day,” Jones said. However, responses were quick. The next day, California Attorney General Rob Bonta, joined by 22 other attorneys general nationwide, filed a lawsuit to block the implementation of the OMB memo, which threatened to freeze up to $3 trillion in federal assistance funding.
Other areas impacted by the freeze include Los Angeles wildfire disaster-relief funding, public health, education, public safety and government programs.
“This directive is unprecedented in scope and would be devastating if implemented,” said Bonta.
U.S. District Judge Loren L. AliKhan blocked the funding freeze minutes before it was scheduled to take effect. Access to payment accounts has been restored, and SDHC has been informed that programs providing direct-benefit, like rental assistance, are not subject to a pending freeze.
Despite the rescission, the Trump administration maintains that freezing funds related to diversity, equity, and inclusion initiatives, foreign aid, immigration assistance, and clean energy projects will resume.
“With this new administration in place, and how funding can be affected, because it may go towards minorities…it is a huge disservice to all the efforts that SDHC has made, and how many lives have been changed as a result,” said Dr. Shavonne Williams.
Dr. Williams is one of the thousands of lives the commission has touched since its inception in the ’70s.
Back in 2007, Williams was a single mom struggling to maintain a job and housing stability. Qualifying for rental assistance from SDHC, she eventually entered into the agency’s Family Self-Sufficiency Program. The program connected her to caseworkers who guided her through the steps of financial independence —pursuing an education, starting a business and ultimately achieving homeownership.
Three months into the program, she opened her childcare business and doubled her income for her family. Sticking with the classes within the Family Self-Sufficiency Program, she eventually became eligible for the First Time Homebuyer Program, where she received vital support in getting a loan officer, realtor, credit score classes, and more.
Within four years of her being with the agency, her business thrived, and she became eligible to purchase a home.
“It all came together full circle,” Williams said, noting how the housing commission helped her build a legacy for her family.
Since leaving the program, Williams has earned a bachelor’s and master’s in school counseling. She now advocates for underserved families, and provides free childcare services to homeless programs administered by SDHC.
“They really are a beacon here in San Diego,” Williams said, “the funding they do receive, it is changing lives.”
Each month the commission pushes out approximately $24 million to landlords on behalf of families they serve. Half of that comes from federal funding, Jones said. Currently 69,000 families remain on the Section 8 housing list, which the commission has not been able to move forward with since 2022.
“Majority of the people that are getting services are minorities. They’re African American, Latinx, or are immigrants. And the way that the new administration is going about it—it’s creating a lot of fear to where people don’t want to participate,” said Williams.
In addition, the commission has quietly pulled back on its programs centered on diversity, equity, and inclusion. Titles have been changed and keywords such as “equity” have been removed from the website.
Yet, Jones contends, “regardless of the activity and the communications at a federal level, discriminatory practices are still illegal, and the Housing Commission is absolutely committed to continuing our efforts to outreach to underrepresented and under-resourced communities.”
“We strongly believe in belonging and inclusion and in making sure that nothing in our policies or practices has a disparate impact on any class—that work will not change,” Jones said.
Advocacy at the local and state-level against these efforts remains strong. As of press time, there are 100 active lawsuits against the Trump administration over his executive orders and federal freezes.
“No Administration is above the law. In every case we’ve filed to date, state attorneys general have successfully restrained the President’s abuse of executive power – and we will continue to hold him accountable; our democratic institutions depend on it,” said Bonta.
