Board approves $2.5 million allocation process for homelessness services amid warnings of a funding cliff

County staff presented an update on the five‑year plan to address homelessness and the data improvements made after migrating to a new Homeless Management Information System (HMIS). Linda Belch, deputy director of Adult and Homeless Services, told supervisors that in 2024 more than 4,000 individuals were served in HMIS‑participating programs, approximately 1,000 people exited to permanent housing, and the system now supports better referrals and reporting.

Belch outlined projected funding gaps for fiscal year 2025–26 (an estimated $2.8 million gap for services and a $2.2 million gap for affordable‑housing infrastructure) and recommended including the board's $2.5 million one‑time allocation in a forthcoming RFP package (combined with other funds) with eligibility limited to community‑based organizations previously awarded county funding and with requirements to show leveraged sources.

Board members and public providers pressed for metrics to guide allocations and for safeguards that preserve the “continuum of care.” Supervisor Gibson urged the board to require joint proposals or a clear continuum plan so the funding does not produce competitive outcomes that leave gaps in core services. “We need to understand what the potential effects of the funding downgrade are and make a clear statement… that this protects the continuum,” Gibson said.

Nonprofit providers and coalitions said the funding is critical to avoid immediate service reductions. Lauren Ramos of CAPSLO and other providers noted recent measurable improvements — a 19% reduction in overall homelessness and a 30% reduction in unsheltered homelessness in recent point‑in‑time comparisons — and warned that cuts would force daytime outreach and supportive services to be scaled back. Brandy Pewitt of Lumen Alliance described shelter and transitional housing demand that already outpaces capacity.

After debate about whether to delay the RFP for more analysis versus issuing it now with joint‑submission and performance expectations, the board moved and approved the staff recommendation to include the $2.5 million in the RFP process, require information about leveraged funds and city participation, and return awards to the board for approval. Supervisors emphasized the funding is a one‑time bridge to preserve core services rather than an ongoing revenue source.

Staff said contract awards would return to the board for final approval and the department will work to integrate performance metrics and partner reporting into the RFP evaluation.