The Housing and Land Use Committee voted to recommend that City Council approve a memorandum of understanding between the City of Salinas, Monterey County and the County Coalition of Homeless Service Providers to apply jointly for a state Encampment Resolution grant. The application would support conversion of the city‑owned El Rey Motel into a low‑barrier navigation center and fund outreach and response activities aimed at encampments in the Davis Street corridor.

Keisha Lopez, homeless services manager, said the county will serve as the lead applicant and grant administrator while the city would be a co‑applicant and the MOU would set project roles. Lopez said the city’s proposal requests $2.3 million of the anticipated $8 million grant application for Salinas components: $1.1 million for capital improvements (to convert and stabilize the El Rey Motel into a navigation center and cover repair costs), and $1.0 million for the Salinas Outreach and Response Team (SORT) split across two fiscal years ($500,000 per year). Staff estimated the navigation center could serve approximately 80 individuals from encampments in the Davis Street corridor.

Lopez said the Encampment Resolution grant is intended to strengthen coordination between state, local jurisdictions and the Continuum of Care and noted the grant release date has been delayed; staff are tracking a likely application window late in the year and said award notifications are to be determined.

Committee members asked about site sustainability and long‑term operations. Lopez said the city’s long‑term goal is to transition operational responsibility to a nonprofit operator; applying for this funding would allow the city to rehabilitate the property and make it operational and therefore more marketable or transferable to a nonprofit operator for sustained operations.

Council Member Sandoval moved the recommendation and Council Member Salazar seconded. Roll call recorded Council Member Salazar: Yes; Council Member Sandoval: Yes; Chair Barajas: Yes. The motion passed unanimously.