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Staff: Dignity Village RFP will seek options to sustain or convert interim shelter as state, federal funding expire
Summary
Housing staff said grants funding Dignity Village run out in 2027, with $1.2 million of general-fund support extending operations through 2028. An RFP will solicit proposals to convert the site to permanent supportive housing, secure a hotel-based model, or propose alternative transitions to sustain beds.
Housing and Human Services staff told the board that funding for Dignity Village currently comes from state and federal grants that are scheduled to end in 2027. Simone Falls, speaking for the division, said an additional $1.2 million from the city’s general fund will maintain the program through 2028, after which the city council must decide whether to continue general-fund support or pursue other funding.
Staff explained the RFP will solicit multiple options. "One option is to convert the existing site to permanent supportive housing, which would mean combining units and adding kitchenettes," a staff member said; a second option is to secure a hotel or extended-stay site that provides in‑unit kitchen and bathroom facilities; a third option would allow proposers to propose a different transition or relocation. Staff emphasized these trade-offs could reduce shelter-bed capacity while creating longer‑term affordable housing opportunities, and that final determinations will depend on proposals and council decisions.
Board members raised practical concerns about unit size and amenity suitability for long‑term housing and asked staff to include site‑walk and outreach steps in the RFP process. Staff said detailed financial analyses and developer proposals will be evaluated once responses come in and noted the RFP is intended to surface feasible, financially sustainable operating models.
