Salinas outlines homelessness strategy as grant funding for programs wanes

City staff on July 25 presented an update to the Salinas City Council on homelessness in the city, outlining program spending, housing acquisitions and recommendations for which services the council should prioritize as one-time grant funding runs out.

The presentation by Community Development Director Yeraline Hernandez said Salinas is home to roughly 50% of Monterey County's homeless population and summarized current programs, costs and gaps. "Our current initiatives are primarily funded through grants with minimal reliance on the general fund," Hernandez said. She listed emergency shelter, prevention, rapid rehousing and outreach programs and said the city has acquired properties to support unsheltered community members.

Hernandez told the council the city currently spends about $20,200,000 on emergency shelter, $15,100,000 on homeless prevention, $3,600,000 on rapid rehousing, $8,900,000 on street outreach, $7,900,000 on housing acquisition and $1,900,000 on administration. She said the city has 222 permanent housing units in its inventory, including motel conversions and four completed single-family homes with two more pending.

Why it matters: Hernandez said many programs are funded with one-time grants that are ending. "With grant funding running out on most of the programs and services, the city will need to determine what programs and services it would like to continue and to identify a funding source," she said. Staff asked the council for direction on which programs to continue funding and for guidance on the city's long-term role in homeless services.

Key program recommendations and staff notes in the presentation included: - Chinatown Navigation Center: staff said continued city funding for operations is not recommended beyond the grant period. The center serves a high-concentration area; staff recommended a community impact assessment and transitional plan before any final decision. - Share Center (emergency shelter): staff recommended continued funding through fiscal year 2026–27 while pursuing additional grants or shifting funding to sustain operations. - Downtown Streets Team: council direction requested for fiscal year 2026–27. - Mobile Crisis Response: council direction requested for fiscal year 2025–26. - Single-family housing purchases: staff recommended transferring acquired homes to a nonprofit provider to ensure long-term operation and sustainability.

Council members asked for details about sustainability and alternatives. Council member Garnika asked how the city would navigate the loss of guaranteed funding; Hernandez recommended prioritizing evidence-based strategies such as housing first, strengthening performance metrics and pursuing a mix of public and private revenue. Council member Martinez pressed on proposed reductions for the Chinatown Navigation Center given its caseload; Hernandez said the recommendation was made after reviewing cost-per-person and outcome metrics and that any phase-out would be paired with scaled-up alternative services and a full community impact assessment.

Council member Garcia asked whether practices from other cities might improve rehousing outcomes; Hernandez cited programs including Salt Lake City's housing-first model, Los Angeles' coordinated entry system and Seattle's use of peer staff with lived experience as examples under consideration.

City Manager Renee Mendez and staff also encouraged continued partnership among city departments, nonprofits and the public. Homeless services manager Keisha Lopez and Assistant to the City Manager Jose Arriola — both of whom spoke during the meeting’s public-comment and staff remarks — urged continued engagement and support for the city’s response.

Public comments during the homelessness item included requests for more shelters and job opportunities, calls for quarterly public reporting of spending and outcomes, proposals for a dedicated recreation center for people experiencing homelessness, and personal testimony about housing insecurity. For example, Esquipulas Orozco Savala asked the council to "commit to public quarterly updates on spending outcomes, like how many people were housed, versus how many people remain on the streets, and the success rate of our response teams." Jacob, speaking about his family’s experience, said his household of five is living in a car and urged increased funding for shelter programs.

What the council decided: the report was received and no formal action was taken at this mock meeting. Staff explicitly requested council direction on which programs to continue funding and on timelines for items such as Downtown Streets Team and Mobile Crisis Response. The presentation and public comments concluded with a statement that the report is "deemed as received" and "no action is taken or required" as part of the exercise.

Context and next steps: Hernandez and other staff emphasized the need to transition from one-time grant models to long-term funding strategies if the city is to sustain current services. Staff recommended pursuing a mix of federal and state grants, philanthropic partnerships and possible dedicated local revenue while expanding supportive housing and wraparound services. Staff also recommended working with nonprofit providers to assume long-term operations of purchased housing stock to preserve services as grant cycles end.

Several council members and members of the public emphasized that the city needs both immediate shelter capacity and long-term housing solutions. Council members asked staff to return with additional analyses and community impact assessments before making funding changes to high-need programs such as the Chinatown Navigation Center.

Ending: City staff and participating youth presenters thanked community members for their comments and engagement. Because the meeting was a mock city council exercise presented by the Salinas Youth and Government Institute, no binding policy changes were adopted at the session.