Salinas to fund Chinatown Navigation Center through March if county adds $200,000; council taps contingency for shortfall

City officials told the Salinas City Council on Aug. 26 that the Chinatown Navigation Center (CNC), which provides daytime services and shelter navigation for people experiencing homelessness, faces an operating shortfall and would close unless new funding is identified.

Keisha Lopez, the city’s Homeless Services Manager, presented the options and figures. Lopez told the council the center has a bed capacity of 50 and that the city has been working with Community Human Solutions, the county continuum of care and the Leadership Council to seek funding. She said the navigation center has a projected shortfall of about $1.5 million and that the City’s short‑term ask to get through the winter inclement period (November through March) is $587,000.

Lopez described two council options: do not fund further and close the Chinatown Navigation Center on Nov. 30, 2025; or appropriate $387,000 from the City’s budget stabilization contingency if the Continuum of Care (leadership council) provides an additional $200,000, together securing services through the inclement weather period. “The Chinatown navigation center will be closing at some point,” Lopez said during her presentation and asked the council to consider a short runway while the city and partners seek other funds.

Why it matters

The navigation center houses and provides case management for people experiencing homelessness, and the city said closure without an alternative would place residents at immediate risk of returning to unsheltered conditions. City staff said coordinated entry will prioritize residents of the CNC for available placements for 90 days, and that staff and partners are actively working to find exits to interim and permanent housing.

Key clarifications and figures in the presentation

- Bed capacity at the Chinatown Navigation Center: 50. - The city’s shortfall for the CNC was described as approximately $1.5 million for continued operations beyond existing funding. - Amount requested to bridge November–March (inclement-weather period): $587,000 total; of that the city asked the Leadership Council for $200,000 and proposed using $387,000 from the City’s contingency if the county contribution materialized. - The city reported a $1 million contingency fund in the city budget; contingency is separate from reserves. - Coordinated entry agreed to a 90‑day priority for CNC residents should beds or placements become available.

Council action and direction

Council voted unanimously to approve the staff recommendation that the City appropriate $387,000 from the budget stabilization contingency contingent on the Continuum of Care/Leadership Council providing $200,000. If the County/Leadership Council does not provide the $200,000, staff will return to council with a revised request. The council’s action effectively buys time through March 2026 while staff and community partners pursue additional funding and placement options.

Public comment and next steps

Speakers included service providers and community members who urged the council to keep the CNC open, said the center places people into housing and warned of limited shelter capacity elsewhere in the region. City staff and partners said they would prioritize coordinated entry assessments for CNC residents, explore interim shelter options with nearby providers and continue fundraising efforts. The city manager said staff would prioritize replenishing contingency at the midyear budget depending on the audited fund balance.

Ending

The council’s vote buys several months for staff and partners to pursue additional resources and to prioritize CNC residents for any openings in interim or permanent housing slots. Council members directed staff to return with updates and to explore alternatives for inclement-weather capacity if the Continuum of Care funding does not materialize.