Los Banos council backs CDBG application, directs tiny-shelter site on G Street
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Summary
The council authorized staff to apply for state CDBG funds to build a 30-plus-unit tiny-shelter village and directed use of a city-owned G Street parcel between 9th and 10th Streets as the preferred site, amending the application budget structure and stressing readiness for a competitive grant process.
The Los Banos City Council voted March 4 to authorize a Community Development Block Grant application to develop an emergency tiny-shelter village and gave staff direction to pursue the city-owned G Street parcel between 9th and 10th Streets as the proposed site.
City staff recommended applying for the maximum amount allowed by the state's CDBG non-entitlement NOFA to create a minimum 30-unit pallet-structure shelter with bathrooms, showers, laundry and an office for wraparound services. Community & Economic Development Director Stacy Elms said the G Street parcel scored highest in a weighted site-selection matrix because it was city-controlled, lacked known soil contamination and had nearby utilities, making the city more competitive for state review.
"This site places the city in the strongest possible position to compete for CDBG funding," Elms said, emphasizing readiness, environmental clarity and cost-effectiveness. Staff told council that the grant process requires NEPA clearance and improvement plans to demonstrate shovel-ready status if awarded.
Councilmembers and speakers raised questions about capacity and program design. One commenter urged separating those who decline services from people seeking housing services; staff and council clarified the village is intended as a replacement for an existing encampment and is aimed at individuals currently unsheltered, not as a family facility. Elms said families and minors are typically directed to motel vouchers and permanent supportive housing options.
Council approved a motion to submit the CDBG application with an amended project budget that staff said would propose $3,000,000 for project infrastructure, $500,000 for program costs and $100,000 for administration. The council also provided explicit direction to proceed with the G Street parcel for the application, citing the parcel's lack of contamination, proximity to supportive services and readiness for development.
The vote was taken after public comment and staff discussion about the competitive nature of the NOFA, the aggressive two-year, nine-month expenditure timeline if awarded, and preparatory costs the city would incur (staff estimated NEPA clearance at about $12,000 and improvement plans near $24,000). City staff noted the city could recover such preparatory costs if awarded funds and that the process would require formal bidding for construction and utility connections.
An Elms presentation and the council's motion clarified that the application does not yet commit city match funds and that final project design, environmental review and procurement steps would follow award notification. The council's direction allows staff to finish application materials and proceed with the requested scope and site selection if state HCD funding is awarded.
