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Board authorizes up to $8 million to help San Rafael buy 350 Marydale for interim shelter and future affordable housing

Marin County Board of Supervisors · November 18, 2025
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Summary

After weeks of public meetings and hours of testimony — including objections citing transparency and pending litigation — the Marin County Board of Supervisors authorized a revised agreement to provide up to $8 million to the City of San Rafael to acquire 350 Marydale Road for a temporary 65‑unit interim shelter (up to 70 individuals) and to preserve the site for at least 80 units of deed‑restricted affordable housing in the long term.

The Marin County Board of Supervisors authorized Nov. 18 a revised resolution that allows the county executive, in consultation with county counsel, to execute capital and operating grant agreements with the City of San Rafael for up to $8,000,000 to acquire and prepare 350 Marydale Road as an interim shelter and future site for permanent affordable housing.

County Executive Derek Johnson described the package as a partnership in which the county funds land acquisition and initial site work while the city would operate the interim shelter and lead the entitlement process for long‑term housing. "This is not an open system," Johnson told the board, adding the project "prioritizes Mahone Encampment residents" and is structured to wind down county operations by June 30, 2027 unless the city secures additional funding.

Under terms presented to the board, the interim facility would provide 65 pallet‑style shelter units with capacity for up to 70 unique individuals at any given time; the county's funding strategy includes a target that the site be developed into at least 80 deed‑restricted affordable housing units at roughly no more than $100,000 per unit of county investment (the county would seek refunds if unit counts fell below that threshold). Operations were estimated at roughly $2,000,000 per year, with ERF (Encampment Resolution Fund) contributions and a 50/50 share of costs contemplated through June 2027; cost overruns would be shared 75% city / 25% county thereafter unless the city elects to continue funding.

The board heard extended public comment. Neighbors and community groups raised three primary concerns: (1) that the city publicly announced the tentative acquisition before formal approvals, raising Brown Act/predetermination and transparency questions; (2) whether CEQA exemptions apply to interim shelter steps and the separate CEQA process for the future housing project; and (3) site‑specific safety and infrastructure matters (septic, wetlands adjacency, pedestrian access to school routes and lighting). Several speakers urged the board to pause action pending a court hearing scheduled for Nov. 24; others — including providers and people with lived experience — strongly urged the county to move forward, citing shelter capacity and lives lost on the streets.

County counsel and staff responded that the county has adopted minimum health and safety standards under the state's shelter crisis legislation and that the county's proposed funding for acquisition is an exempt action for purposes of CEQA; they said the county's approval can be held pending the outcome of litigation if necessary. Chief Deputy County Counsel Brandon Halter and County Counsel staff outlined how state statutes and county ordinance relate to shelter crisis processes.

The Good Neighbor Policy and operational design were described as works in progress; the agreement grants the county executive discretion to adjust the execution date in light of pending litigation, and requires quarterly reporting on utilization, housing placements and neighborhood complaints.

Action: Supervisor Rodoni moved and Supervisor Lukin seconded a revised resolution authorizing the county executive to execute a capital and operating grant agreement with the City of San Rafael for up to $8,000,000 from the Marin County Affordable Housing Trust, to record regulatory agreements ensuring long‑term affordability, and to direct county staff to collaborate with the city on community feedback and the Good Neighbor Policy. The motion passed on a roll‑call vote with all supervisors voting yes. County staff will withhold final execution pending the Nov. 24 court proceeding if circumstances require.

Next steps: The city and county will hold additional outreach meetings on Dec. 9 and Jan. 14; county staff will monitor the Nov. 24 court hearing and report back to the board. Quarterly performance reports to the county are required under the grant and regulatory agreements.