Affordable housing development under construction in the Midway District

SAN DIEGO (FOX 5/KUSI) — Construction is underway at a former hotel in San Diego's Midway District which will be turned into an affordable housing development for people who were formerly unhoused.

According to a release Thursday from the office of San Diego County Supervisor Terra Lawson-Remer, the county has pledged up to $42 million in capital loans to the city of San Diego and the San Diego Housing Commission for this project, along with others.

The development, called Pacific Village, will have a total of 62 units, including 15 specifically for veterans who have experienced homelessness.

Pacific Village is part of the California Department of Housing and Community Development's Homekey program , a statewide effort to create housing opportunities for people experiencing or at risk of homelessness.

The project is part of Homekey's third round of funding, which also has been distributed to two other San Diego developments — a 13-unit complex called Abbott Street Apartments and a 161 unit complex at Presidio Palms .

The development is expected to be operational in December.