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Chinatown Navigation Center faces closure absent new funding; city seeks options and asks council to weigh tradeoffs
Summary
City staff told the finance committee the Chinatown Navigation Center is facing a significant operating shortfall and could close unless the city and partner agencies identify additional funding.
Keisha Lopez, the city’s Homeless Services Manager, told the Finance Committee on Aug. 12 that the Chinatown Navigation Center faces a funding shortfall and could close unless additional resources are identified.
“The operational cost is around $2,500,000 to keep the facility operational,” Lopez said, and the city previously informed the council in May that it faced a $1,500,000 shortfall.
Lopez said the city has primarily funded operations through grants and the general fund since March 2020 and has been exploring options with Community Homeless Solutions, the Continuum of Care (CoC) for Monterey and San Benito counties, and Monterey County. She said Community Homeless Solutions revised its budget downward, and that the CoC leadership council is expected to consider a possible $200,000 contribution at its upcoming meeting. If the CoC contributes $200,000, staff proposed requesting $387,000 from the city’s fund balance to keep the center open through inclement weather months; if the CoC does not provide the $200,000, staff proposed requesting the full $587,000 to extend operations to cover inclement weather.
Committee members asked about relocation options for the center’s clients and bed availability. Lopez said participants would receive priority for permanent supportive housing and rapid rehousing projects administered through the Continuum of Care, that the county’s Share Center could accept clients when beds become available, and that housing navigators are actively working on placements.
Committee members and city staff emphasized timing constraints. Lopez said current funding will get operations through Nov. 30, 2025, and staff asked the committee whether to take a recommendation to City Council. Committee members said they wanted the full council to weigh the decision and requested the matter be placed on the next available council agenda; staff and committee agreed to present the item to the City Council and to factor CoC decisions expected on Aug. 27 into the council discussion.
No final council decision was made at the committee. Staff said they are working on placements in the event of closure and will return to the council with funding recommendations and additional information.
