Encinitas council declines to submit HCD ERF Round 5 application amid concerns about state conditions

Encinitas — After a spirited debate on June 24, the Encinitas City Council voted 4–1 not to authorize staff to submit an application for California’s Housing and Community Development Encampment Resolution Fund (ERF) Round 5. The staff proposal would have sought ERF funds to support an interim‑placement and housing‑stabilization pathway aligned with San Diego Rescue Mission’s regional model.

Staff described ERF Round 5 as more flexible than earlier rounds and suited to a pathway that prioritizes interim placements, behavioral‑health interventions and stabilization before placement into permanent housing. STRM representatives told the council the model used in Vista and other jurisdictions was adaptable to Encinitas and that grant awards can support outreach, case management and housing stabilization services without requiring a city match.

Opponents warned accepting ERF money could come with state conditions that limit local control, expand operational obligations, or require motel placements and administrative layers. Multiple speakers said prior statewide programs had unmet promises and flagged long‑term fiscal exposure if grant funding ended and obligations continued. One neighbor and several council members questioned motel‑based interim placements and the administrative share of grant dollars; others worried that the grant’s terminology (references to Housing‑First and harm‑reduction) could be interpreted to require practices the council did not support.

Supporters — including residents and several council members — argued that applying for a competitive grant poses little downside because the council would retain final approval of any grant award and that ERF funding could bring resources for outreach, navigation and housing stabilization without using local general‑fund dollars. Proponents noted that the grant is designed to be negotiable and that the city’s limited by‑name list could be targeted for a focused, geographically delimited program.

After debate about program control, housing readiness criteria and whether the city should accept state funding on the terms described, a motion to decline filing the application passed 4–1. Mayor Bruce Ehlers and multiple council members emphasized continued support for local partnership with San Diego Rescue Mission and for exploring other funding and program options to address homelessness while preserving local discretion.

Council direction after the vote included continuing the city’s existing outreach and partnerships, pursuing alternative funding sources and asking staff to return with options that preserve local control and avoid open commitments that could create long‑term city obligations.