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San Diego outlines $25.8M HAP 6 joint application focused on housing, diversion and shelters

San Diego City Council · July 14, 2025
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Summary

City staff said San Diego will join a regional application for HAP Round 6 seeking $25.8 million for citywide homelessness prevention, interim housing and shelter operations; the application must meet state performance metrics for a second disbursement and return to Council for acceptance if awarded.

Sarah Jarman, director of the City’s Homelessness Strategies and Solutions Department, told the City Council the city will join the County of San Diego and the Regional Task Force on Homelessness in a single, regional application for the State’s Homeless Housing Assistance and Prevention Program (HAP) Round 6. The application commits the region to the state’s new eligibility and performance requirements and would allocate roughly $25.8 million to the San Diego region, with $12.1 million proposed for the City of San Diego.

Jarman said the city’s proposed split for its portion includes about $4.7 million for prevention and diversion programs (family reunification, safe parking and related services), $15.5 million to support existing shelters and interim housing operations, $4.0 million targeted to transition‑aged youth shelters and roughly $1.6 million for administration and homelessness management information system support. She emphasized the department is proposing to prioritize “housing solutions” (categories 1–3 in the HAP guidance) and is not proposing new funding under the state’s non‑housing category for this round.

Amy Lee of the Independent Budget Analyst’s office told the council HAP 6 increases the state’s use of system performance measures — point‑in‑time counts, first‑time homelessness, exits to permanent housing and length of homelessness — and made clear the State may withhold the second 50% of an award if a region fails to sufficiently improve on the required metrics. Lee urged the council to weigh trade‑offs between funding diversion programs that increase throughput and preserving shelter operations funded through prior HAP awards and the general fund.

Public commenters offered mixed views: some residents urged a larger share for permanent housing and prevention, while representatives of the regional continuum said diversion pilots have shown success and that flexible funding can increase exits to permanent housing. Jarman said staff are confident the city can obligate and expend the first 50% of an award, and that inclusion of diversion funding may help the region meet the state’s system performance measures tied to the second disbursement.

The state’s NOFA is due August 29; staff said they will submit a joint application and, if awarded, bring a formal action to council early next year to accept and expend HAP 6 funds. Under the state timetable the city must meet several benchmarks to receive the second disbursement, including improvements on performance measures and regional planning updates. HAP 6 awards must be fully expended by June 30, 2029.