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Governor pulls millions of dollars in funding for tiny homes in San Diego County

Gavin Newson's office says County leaders are moving too slowly, but local officials are still hoping to get funding.

LEMON GROVE, Calif. — State leaders are backing out of their offer to contribute $10 million to place 150 tiny homes on a lot on Jamacha Road near State Route 125 in Spring Valley

At first, County Supervisors approved the plan, but then changed their minds after neighbors objected. So now the state is pulling its money. 

Instead of giving it to us for another project in the county, they're sending it to San Jose.

"San Diego County could not move with the urgency the housing and homelessness crisis demands," The governor's office told CBS 8 in statement, adding "The Governor is committed to accountability, and we will not allow local delays and opposition to impede the state's unprecedented efforts to get people off the streets and into housing."

County leaders confirmed the news at the supervisor’s meeting Tuesday morning. 

“It complicates things now that the Governor has officially said he's taking his money and his homes back,” said County Supervisor Monica Montgomery Steppe.

She is hoping San Diego County can still get money from the state for a smaller project a few miles away from the initial site. It’s currently a vacant lot in Lemon Grove. The plan is to build approximately 70 sleeping cabins with 24 hour security. It'll cost just over $11 million to plan, design, and build and another $3 million annually to operate it.

“This is a priority, providing a safe and stable place for our neighbors suffering from homelessness to stay,” Montgomery Steppe said. “I believe we are setting a foundation for which they can regain their footing and get back on the path of self-sufficiency."

County Supervisors unanimously passed Montgomery Steppe’s motion to move forward with the Lemon Grove plan
and Chairwoman Nora Vargas' office sent CBS 8 statement Wednesday making it clear that she is still hoping to secure state funds. 

"I look forward to collaborating with Governor Newsom to find real and equitable solutions to the homelessness crisis and will continue to ensure that community voices are heard throughout this process," the statement reads.

Despite the unanimous vote to move forward with the Lemon Grove site, Supervisor Montgomery Steppe knows there is still a lot of work to do to get community support. But she says it’s a battle worth fighting. 

“I think it's our responsibility to provide help for people who want help,” she said.

If all goes as planned, the new sleeping cabins will be up and running within two years.

WATCH RELATED: San Diego County leaders consider Lemon Grove as possible site for 'sleeping cabins'

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