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County, Salvation Army and city outline funding plan for ACES shelter; staff say operations funded through April 2026
Summary
Officials reported that the ACES low‑barrier shelter has multiple braided funding streams and, following recent disbursements and anticipated state funds, staff have resources to operate the site through about April 2026; the board directed staff to pursue non‑general fund sources and return by January 2026.
The Board of Supervisors received an update Sept. 30 on the Access Center and Emergency Shelter (ACES), the county’s low‑barrier shelter operated in partnership with the Salvation Army and the City of Modesto.
What staff reported: ACES provides 182 beds with supportive on‑site case management and services that allow guests to keep partners, pets and possessions. County staff said ACES has served roughly 2,800 unique individuals since opening in 2019 and that guests display a high incidence of medical conditions, mental‑health disorders and disability. Staff emphasized the shelter’s role as a critical entry point to housing and recovery services.
Funding challenges and current picture: The county has braided 24 separate funding streams to sustain ACES since 2019, primarily relying on HAP (Housing and Homelessness Assistance Program) rounds and PLHA among other sources. Recent developments — including a revised interpretation of the HAP round 5 second‑disbursement criteria and a Salvation Army commitment from round 6 — improved the near‑term funding outlook. As of the presentation and subsequent staff updates, county staff said they expect funding through approximately April 2026 but noted an estimated remaining gap of roughly $800,000 beyond that horizon.
Board direction and next steps: Supervisors unanimously directed the CEO’s office, CSA, Behavioral Health and Recovery Services, Planning and Community Development and the City of Modesto to continue pursuing non‑general fund sources, to explore program changes and billing options (including potential CalAIM avenues), and to return to the board with a status update no later than January 2026. CEO Jody Hayes confirmed the current projection: "we have enough funding to get us through about April of this fiscal year." The board encouraged continued partnership with the City of Modesto and Salvation Army and asked staff to explore sustainable operating models.
