! It produces failures: ! ! could not change directory to "/home/jwalton/godojo": Permission denied
... this appears to me as rather a sudo issue. Because certainly psql cannot execute /as user postgres/ in a directory where user postgres is not allowed to enter.
FWIW, I don't think this is quite true, and it's more of a warning than a failure. For example, from my own directory I can sudo to postgres and run a psql shell with no problem. It will complain about not being able to change directory, but it will then proceed to load and run psql just fine...
[ktanzer@hosting ~]$ sudo -u postgres psql could not change directory to "/home/ktanzer": Permission denied psql...