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Long Beach to return modular non-congregate shelter grant to state, retains units for local options
Summary
City will return a $5.6 million advance payment for a modular shelter project to the California Department of Housing and Community Development after concluding modular/tiny-home placements were not cost-effective in available Long Beach sites; the city retains the modular units and will pursue local partnerships or sale.
Long Beach City Council approved returning an advance payment grant of $5,616,752 to the California Department of Housing and Community Development for a modular non-congregate shelter project while keeping the modular units in city possession to pursue alternate local uses.
City staff reviewed project outcomes and told the council they had explored multiple sites and partnerships to place tiny-home/micro-housing units, but encountered technical and cost obstacles in a built-out city (utility connections, sewer and electric infrastructure, and required campus layouts). Staff said similar programs have greater success where open land and preexisting utility connections are available; Long Beach's built environment and associated costs limited feasibility.
The city purchased modular units and other assets during the process and will retain them. Returning the state grant removes the spending restrictions the funds carried; staff said that with local control the city can pursue other interim housing partnerships (with non-profits, faith groups or other jurisdictions), sell the units, or re-purpose them where technically feasible. Councilmembers thanked staff for exhaustive site analysis and said the city has made progress in other temporary and permanent shelter solutions during the pandemic and homeless emergency (including motel leases, Project Roomkey-type sites, and acquisition of the ABC shelter site).
Council approved the return of funds and directed staff to continue seeking partnerships and options to use the modular units locally or regionally without the original state grant restrictions.
