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Council delays final decision but extends funding window as homelessness budget cliff looms
Summary
City staff told the council the city has spent about $57.6 million of roughly $76.1 million in pandemic‑era and related homelessness grants, leaving limited funding beyond FY 2026–27; the council directed staff to continue the SHaRE Center partnership and buy time on contract amendments while seeking county cooperation and additional grants.
City staff presented an update on homelessness programs and funding at a special Salinas City Council meeting on May 27, outlining which programs are funded, what they have placed into housing and how grant dollars will run out without action.
Assistant City Manager Lisa Murphy and Homeless Services Manager Keishla Lopez said the city has been awarded about $76.1 million since 2020 for homelessness response and augmented that with about $8.4 million from the general fund; expenditures to date total roughly $57.6 million, with remaining grant commitments expected to be largely exhausted by the end of fiscal year 2026–27 without new funding. Lopez presented program‑level outcomes: the Chinatown Navigation Center had served 753 individuals and placed 37 into permanent supportive housing to date; the SHaRE Center (a county‑city partnership operated by Community Human Services) had served about 690 people and placed 46 into housing.
Staff asked council direction on a set of programs and proposed actions: they recommended against the city continuing to operate Chinatown Navigation Center as a city‑funded ongoing program absent new funding, recommended continuing SHaRE Center funding for the near term while pursuing grants and county partnership, and requested direction on the Downtown Streets Team and the county‑funded mobile crisis response team. Lopez noted city purchases of motel/hotel properties and single‑family homes intended for long‑term supportive or transitional housing, and said operational funding for several of those projects remains to be identified.
Council discussion and public comment
Council members and the county’s homeless services director, Roxanne Wilson, pressed for urgent, coordinated county‑city action and asked staff to pursue additional state and federal grants. Multiple council members and community speakers urged the council not to abruptly end Chinatown Navigation Center operations given occupant needs and the short‑term calendar (staff recommended reappropriating limited encampment resolution grant funds so work can continue through Oct. 2025 while the city and county pursue solutions). County staff said the region’s homeless system is at risk as many pandemic‑era funding sources wind down and emphasized the need for joint planning.
Outcome and direction
On the consent agenda the council approved contract amendments that reappropriate grant dollars and extend existing emergency shelter contracts through October 2025 to buy time for further review. Council members directed staff to bring the homeless‑services update back with more detailed performance reporting, to continue working with Monterey County on shared solutions and to identify additional grant or local revenue options during the budget process. Staff noted a multi‑million‑dollar shortfall is expected in the coming fiscal years if no new revenue is secured and asked for direction on which programs the city should prioritize continuing.
Why it matters
Staff reported that without new grant awards or local funding, many programs now supported largely with one‑time pandemic and other grants will be unsustainable beyond FY 2026–27. Council members and the county emphasized that the city does not act alone on homelessness and asked for an accelerated county‑city plan showing costs, achievable outcomes and how shelter, outreach and housing production investments could be sequenced.
