Chinatown Navigation Center faces potential closure without funding; staff seeks council direction on shortfall

Homeless Services Manager Keisha Lopez told the Finance Committee on Aug. 12 that the Chinatown Navigation Center’s operating funds will carry the program through Nov. 30, 2025, but a shortfall remains and staff needs direction on whether the city should use general‑fund balance to extend operations.

Lopez said the center has been city‑funded since March 2020 through grants and general fund support and that the current annual operating cost is roughly $2.5 million. Community Homeless Solutions revised its operating budget and reduced monthly expenses, extending the funding runway by about one month compared with an earlier estimate. Lopez said the Continuum of Care (CoC) leadership council is considering a possible $200,000 contribution that would reduce the city’s request.

The nut graf: staff presented two primary options to the Finance Committee: if the CoC approves $200,000, staff would request $387,000 from the city’s fund balance to bridge the center through inclement weather months; if the CoC does not provide $200,000, staff would ask the city to cover the full $587,000 gap (amounts cited by staff). If no additional funding is identified, the team said the center will move forward with closure planning once current funds are exhausted.

Committee members asked about relocation and placement for program participants. Lopez said staff and the CoC use coordinated entry to prioritize navigation‑center participants for permanent supportive housing and rapid rehousing and have been exploring transitions to other facilities such as the county-run share center as beds become available. Lopez cautioned that capacity changes month to month and that staff is prioritizing placements now.

Committee members said they wanted the full City Council to weigh in. City staff proposed placing the matter on the next available City Council agenda (committee discussion referenced the Aug. 26 meeting window) so councilors could consider funding options after the CoC’s leadership decision expected later in August. Staff emphasized that closure planning and placement work are already underway in case additional funding is not secured.

Ending: Finance staff will bring a recommended funding path to the City Council as an urgent matter after the CoC’s decision; if the CoC funds $200,000, staff requested a $387,000 allocation from fund balance to extend operations through inclement weather months. If the CoC does not provide funds, staff said it will return seeking the full $587,000 allocation or will proceed with closure planning.