A proposed 224-unit housing development that’s been called an ideal way to add mid-rise homes to mostly single-family neighborhoods is facing a new hurdle: a lawsuit over its potential impact on traffic and wildfire risk.

Economic Development Director Christina Bibler notified Chelsea in a letter last month of the city’s decision to terminate all negotiations with the developer on the project, which was announced last May and envisioned 402 units of low-income housing on the East Village site.

A new shelter for women and children experiencing homeless was unanimously approved by the San Diego Housing Commission Friday but must pass another hurdle. The shelter, which would be located at 733 Eighth Avenue downtown,

The city will pay for the beds, but the housing commission will contract with Catholic Charities, Diocese of San Diego to operate the shelter -- Rachel's Promise Center for Women and Children.