HomeMy WebLinkAbout2025-11-13; Housing Commission; 03; Homelessness Action Plan Fiscal Year 2026-27 Funding PlanMeeting Date: Nov. 13, 2025
To: Housing Commission
From: Chris Shilling, Homeless Services Manager
Staff Contact: Chris Shilling, Homeless Services Manager
chris.shilling@carlsbadca.gov, 442-339-2284
Subject: Homelessness Action Plan Fiscal Year 2026-27 Funding Plan
District: All
Recommended Action
Adopt a resolution recommending that the City Council approve the fiscal year 2026-27
Homelessness Action Plan Funding Plan and the Housing Trust Fund expenditures therein.
Executive Summary
The fiscal year 2026-27 Homelessness Action Plan Funding Plan identifies the most appropriate
funding sources for each of the city’s initiatives and directs resources to where they will have
the biggest impact. The Housing Trust Fund is recommended for a portion of expenditures in
the funding plan. The Housing Commission makes recommendations to the City Council on
housing and homeless related policy and Housing Trust Fund allocations.
Explanation and Analysis
Background
The city’s Homelessness Action Plan was approved in Feb. 2023 and includes high-level policy
direction and strategies, with the annual resource needs being identified each year in a funding
plan. The funding plan determines the most appropriate funding source for each activity to
ensure the most effective use of funding and maximize the impact of the activities within the
Homelessness Action Plan. Identifying all services in one consolidated funding plan allows city
staff to more easily identify gaps, duplication or alternate funding resources.
City staff analyzed the strategies and activities identified in the Homelessness Action Plan
against resources available and individual grant requirements to identify an appropriate
funding plan for FY 2026-27 (Attachment A). The total funding plan of $8,834,812 includes a
variety of resources including grants and non-discretionary funding to implement the
Homelessness Action Plan. The FY 2026-27 funding sources remain consistent with the previous
year. Although there is currently some ambiguity related to the 2026-27 federal funds, staff
have included all federal funds at current levels. The funding approved by the City Council will
Nov. 13, 2025 Item #3 Page 1 of 12
be considered as part of the city’s annual budgeting process. The funding plan supports a wide
range of services and programs that address the three key areas of focus in the action plan:
•Shelter and housing
•Outreach and access to services
•Public safety
Funding sources and how they are being used
The city funds its efforts to reduce homelessness through the following funding sources.
Funding amounts for grant amounts and personnel expenses are estimates as of the date of
this report. There may be minor changes made to the budget scheduled to be presented for
City Council consideration in May 2026.
City funds
General Fund – $3,653,628
The city’s General Fund operating budget covers a wide range of day-to-day city
services. It is used for activities not eligible for other funding sources or when service
needs exceed available grant funding.
Most of this allocation is for city staff dedicated to reducing homelessness and
addressing the impacts of homelessness on the community, specifically the Police
Department’s Homeless Outreach Team and the city’s Homeless Services staff. This is a
$158,577 increase from what was budgeted in the current fiscal year, due to increases
in personnel expenses. These are estimates as of the date of this report based on a
general 5% year-over-year percentage increase in personnel expenses and are subject to
change.
Housing Trust Fund – $101,000
This fund receives fees that all residential developments greater than six units must pay
the city to satisfy their obligation to provide affordable housing. It also receives revenue
from other sources, including interest from loans and interest earned on the fund
balance. The funds are designated to support the affordable housing needs of lower-
income households.
City Council Policy No. 90 for Administration of the Housing Trust Fund identifies six
affordable housing priorities in descending order. The fourth priority is homelessness
programs. This includes but is not limited to programs and services that provide short-
term rental assistance or short-term shelters. Since this fund is intended to increase the
supply of housing, city staff recommends using this funding source sparingly for ongoing
operations so the fund can be reserved for capital needs. The recommended
Homelessness Action Plan Funding Plan includes a limited amount from the Housing
Trust Fund, which is consistent with historical allocation and strategic priorities as
identified by the City Council.
Nov. 13, 2025 Item #3 Page 2 of 12
Non-city funding
The remaining $5,181,184 available and recommended from other eligible funding sources in
the funding plan comes from outside sources, as broken down below.
Community Development Block Grant – $81,823
This federal program, commonly known as CDBG, provides annual grants to states, cities
and counties to help provide decent housing and a suitable living environment,
principally for low- and moderate-income people. There is a cap on public services, and
the proposal is to utilize the maximum amount of CDBG for public services.
This federal grant funding for public services is limited and heavily regulated with high
reporting and monitoring requirements. The city’s annual entitlement grant for FY 2025-
26 is expected to allow $81,823 to be spent on public service activities, such as those
provided under the Homelessness Action Plan. The five-year plan for CDBG funds
identified homeless services as the highest priority for CDBG service funding. Since the
CDBG funding available for public services is such a low amount, but requires a high
administrative burden, city staff recommend that CDBG funding continue to be used to
fund fewer service contracts, but in higher amounts. City staff recommend allocating
funding emergency rental assistance, which is an essential prevention component of the
city’s Homelessness Action Plan and normally captures the data necessary to meet the
reporting and monitoring requirements.
Permanent Local Housing Allocation – $200,000
This state program was established in 2017 to provide funding for affordable housing. It
is funded by a $75 fee levied on certain real-estate transactions and is expected to
generate an ongoing revenue source to support affordable housing for jurisdictions
throughout the state. Since it is expected to be a permanent ongoing source of revenue
city staff recommends utilizing it to support ongoing expenses in the funding plan.
The City Council approved the Permanent Local Housing Allocation Program Funding
Plan and Application for Funds in October 2022. This program provides funding for
affordable housing and homeless services. The Homelessness Action Plan Funding Plan
would continue to use this funding source for shelter services.
HUD Continuum of Care Grants – $1,589,233
This competitive federal grant program from the U.S. Department of Housing and Urban
Development (HUD) provides funds for limited-term rental assistance and supportive
services to households experiencing homelessness as well as supportive services to
households experiencing homelessness with a Carlsbad housing choice voucher1. The
matching funding for the vouchers also comes from HUD and is already budgeted
annually but not reflected in the funding plan as the program is not primarily for people
1 The housing choice voucher program is the federal government's major program for helping very low-income
families, the elderly and the disabled afford decent, safe and sanitary housing in the private market.
Nov. 13, 2025 Item #3 Page 3 of 12
experiencing homelessness. The grants also provide a small portion of city positions
including the Housing Specialist’s salary and administrative revenue to reduce any
impacts on the general fund for administering the program. These grants have been
expected to be renewed annually.
Opioid Settlement Fund – $100,000
The City of Carlsbad is part of the nationwide settlements to resolve opioid-related
litigation brought by states and local governments against the three largest
pharmaceutical distributors. At least 50% of the settlement proceeds received by the
city in each calendar year must be spent on one or more high impact abatement
activities, as defined in the settlement agreements.
This funding provides outreach, education and referrals related to opioid and substance
abuse, with the focus to include local schools and people experiencing homelessness.
Encampment Resolution Funding
This competitive state grant program assists local jurisdictions in ensuring the wellness
and safety of people experiencing homelessness in encampments by providing services
and supports that address their immediate physical and mental wellness and result in
meaningful paths to safe and stable housing. These grants are one-time, three-year
grants. The city has received three grant awards as described below.
Encampment Resolution Funding (ERF-2-R) – $605,034
This state grant provides funding through June 14, 2027, to address homelessness in the
Village area including Pine Park, Holiday Park and the Cole Library. The funding allows
the city to expand on its multi-disciplinary approach to addressing homelessness
through the implementation of an additional social worker and peer support specialist,
expand shelter and housing options, and develop a street medicine program to increase
the health and safety of those living unsheltered and reduce the burden on emergency
services. The grant also includes funding for part of city positions including part of the
Homeless Services Division’s Senior Program Manager and Management Assistant
salaries through FY 2026-27.
Encampment Resolution Funding (ERF-3-R) with Oceanside – $1,734,308
This state grant is a partnership with the City of Oceanside and provides funding through
Apr. 18, 2028, to address homelessness along Highway 78 and the Buena Vista Creek.
The funding allows the city to expand shelter and housing options to increase the health
and safety of those living unsheltered along the border areas of the cities. The grant also
includes funding for part of city positions including part of the Homeless Services
Division’s Management Assistant’s salary through FY 2027-28.
Encampment Resolution Funding (ERF-3-R) Vehicular Outreach Program – $769,625
This state grant provides funding through Oct. 4, 2028, to address vehicular
homelessness in the Village, Barrio and beach areas. The funding allows the city to
Nov. 13, 2025 Item #3 Page 4 of 12
create an innovative Vehicular Homeless Outreach Program (V-HOP) to provide a multi-
disciplinary approach to addressing homelessness for people living in vehicles through
outreach social workers, peer support, housing navigation and rapid re-housing. The
grant also includes funding for part of city positions including part of the Homeless
Services Division’s Senior Program Manager’s salary through FY 2028-29.
Services provided
The city coordinates and collaborates with many other agencies supporting the needs of people
experiencing homelessness. Services such as health care, food assistance, behavioral health and
substance abuse services are important in serving the needs of people experiencing
homelessness and are funded through other governmental and philanthropic sources.
The city contracts for direct services including prevention, outreach and case management,
shelter, benefits and employment, street medicine, housing assistance and other critical
services to reduce homelessness in our community. The Homelessness Action Plan Funding Plan
identifies appropriate funding sources and amounts for these services with 64% of all funding
going to direct services. The majority of direct services fund housing assistance. The graph
below details the funds spent on direct services:
City staff
Most of the recommended allocation from the city’s General Fund is for the Police
Department’s Homeless Outreach Team and the city’s Homeless Services staff because most
social service and benefit programs are funded through the federal, state and county
governments.
Funding for city staff dedicated to reducing homelessness and addressing the impacts of
homelessness on the community is included in the city’s baseline operating budget. City staff
costs include public safety, contract administration, data collection and reporting and
coordination of service delivery. The largest portion of this category is allocated to the
Homeless Outreach Team, which operates seven days per week and is staffed with one police
sergeant and six officers.
22%
12%
2%
64%
Direct services
Outreach & Case Management
Shelter
Benefits & Employment
Housing Assistance
Nov. 13, 2025 Item #3 Page 5 of 12
City services infrastructure
A small percentage of funding is allocated to city services infrastructure, which includes
encampment and abandoned trash clean up and portable restrooms. A total of $125,000 from
the General Fund is included in the city’s FY 2026-27 baseline operating budget for these
services.
Activities and funding overview
Activity Approximate
budget
Percentage of total
funding
Percentage of
General Fund
funding within the
Funding Plan
Housing assistance $3,644,055 41% 11%
Outreach and case
management $1,264,680 14% 9%
Shelter $658,186 7% 4%
Benefits and employment $140,000 2% 4%
Direct services subtotal $5,706,921 64% 28%
Police Homeless Outreach
Team $2,242,468 25% 61%
Homeless Services $760,423 9% 8%
City services infrastructure $125,000 2% 3%
Indirect services subtotal $3,127,891 36% 72%
Total resources $8,834,812
Funding by Activity
The following graph identifies the changes in funding by activity over time:
Nov. 13, 2025 Item #3 Page 6 of 12
Changes from the current year
Reduction from current year
The total funding plan of $8,834,812. The city has been fortunate to receive three
Encampment Resolution Funding grants from the State of California. They are all three-
year grants with original expirations in 2026 for one grant and 2027 for two grants. The
California Department of Housing & Community Development, that oversees grant
administration, announced that existing grant expiration dates are eligible to be
extended by one year. The grant amount remains the same, but the funding can be
spread over an additional year. This reduces funding per year over the next two years
but allows the city to provide the contracted services for an additional year.
HUD Continuum of Care Funding
The city currently receives two HUD Continuum of Care grants that provide funding for
short-term rental assistance and supportive services. These grants were considered
renewable, subject to appropriations and ranking within the Continuum of Care Notice
of Funding Opportunity (NOFO) application process. In 2024 HUD announced that their
NOFO award process was for a two-year period. With the change in administration in
2025 HUD announced that they would not be honoring the two-year commitment and
would have a funding competition in 2025. The release of that NOFO may be delayed
due to the ongoing government shut down. If a 2025 NOFO is released city staff will
review it for any changes that may impact the amount of funding the city receives. For
planning purposes, the funding plan currently includes the current amount.
Carlsbad Service Center Transition
Staff are recommending a shift in funding of the Carlsbad Service Center to focus on
homelessness prevention and diversion. Prevention and diversion are already essential
components of the City’s Homelessness Action Plan, but the increase in persons
experiencing homelessness for the first time is increasing the need for more services in
this category. In FY 2024-25 the by-name list showed that 191 unduplicated people who
experienced homelessness in Carlsbad were new to the Homeless Management
Information System, with no previous enrollments in a homeless services program. This
is compared to 140 people the previous year, which is an increase of 36%. Transitioning
the focus to homelessness prevention and diversion would help to address this trend by
providing housing problem solving and financial assistance to help people avoid
homelessness or divert them from homelessness as quickly as possible. No additional
funding is requested for this change, but the funding category is being moved from the
Employment and Benefits section to the Housing Assistance section within the
Homelessness Action Plan Funding Plan.
Fiscal Analysis
City staff will continue to identify opportunities to use grant funding and other outside funding
sources for our efforts to combat homelessness in an effort to reduce the funding needed from
the city’s General Fund.
Nov. 13, 2025 Item #3 Page 7 of 12
The recommended Carlsbad Homelessness Action Plan Funding Plan includes $5,181,184 in
revenue from sources outside the city’s General Fund. Included in the funding plan are funds
from the Community Development Block Grant Program, Permanent Local Housing Allocation
Program, the HUD Continuum of Care Program, the National Opioid Settlement, the
Encampment Resolution Funding program and the city’s Housing Trust Fund.
Next Steps
The Homelessness Action Plan Funding plan will be presented to the City Council for approval.
Environmental Evaluation
The proposed action is not a “project” as defined by CEQA Section 21065 and CEQA Guidelines
Section 15378(b)(5) and does not require environment review under CEQA Guidelines Section
15060(c)(3) and 15061(b)(3), because the proposed action to report on the annual
Homelessness Action Plan Funding Plan is an organizational or administrative government
activity that does not involve any commitment to any specific project which may result in a
potentially significant physical impact on the environment. Any subsequent action or direction
stemming from the proposed action may require preparation of an environmental document in
accordance with CEQA or CEQA Guidelines.
Exhibits
1. Housing Commission Resolution
Nov. 13, 2025 Item #3 Page 8 of 12
Nov. 13, 2025 Item #3 Page 9 of 12
CITY OF CARLSBAD
HOMELESSNESS ACTION PLAN
FY 2026-27 FUNDING PLAN
Activity Provider GF CDBG¹ HTF PLHA HUD² Opioid
Funds
ERF 2-R³
Carlsbad
Village
ERF 3-R³
(OS)
ERF 3-R³
(VHOP)
FY 26-27
TOTAL
FY 25-26
TOTAL
Ou
t
r
e
a
c
h
&
C
a
s
e
M
g
m
t
.
Homeless
outreach and
case
management
Interfaith
Community
Services
$315,000 $225,861 $290,478 $831,399 $1,088,920
Street
Medicine
Whole
Person
Care Clinic
$58,036 $275,245 $333,281 $327,284
Substance
abuse
outreach &
education
Interfaith
Community
Services
$100,000 $100,000 $80,000
Outreach & Case Management $315,000 $0 $0 $0 $0 $100,000 $283,897 $275,245 $290,478 $1,264,680 $1,496,204
Sh
e
l
t
e
r
La Posada de
Guadalupe
Catholic
Charities $200,000 $79,816 $178,691 $458,507 $537,820
Regional
Shelter
Network
Alliance for
Regional
Solutions
$40,000 $40,000 $40,000
DV Services
Women’s
Resource
Center
$10,000 $10,000 $10,000
Emergency
pet boarding
Humane
Society $29,825 $29,825 $29,825
Motel
voucher
City of
Carlsbad
HHS
$70,000 $19,854 $89,854 $102,500
Motel
voucher
City of
Carlsbad
PD
$30,000 $30,000 $30,000
Shelter $139,825 $0 $40,000 $200,000 $0 $0 $99,670 $178,691 $0 $658,186 $750,145
Attachment A
Nov. 13, 2025 Item #3 Page 10 of 12
CITY OF CARLSBAD
HOMELESSNESS ACTION PLAN
FY 2026-27 FUNDING PLAN
Activity Provider GF CDBG¹ HTF PLHA HUD² Opioid
Funds
ERF 2-R³
Carlsbad
Village
ERF 3-R³
(OS)
ERF 3-R³
(VHOP)
FY 26-27
TOTAL
FY 25-26
TOTAL
Ho
u
s
i
n
g
A
s
s
i
s
t
a
n
c
e
Housing
navigation
City of
Carlsbad $36,891 $36,000 $43,399 $116,290 $111,694
Housing case
management
Interfaith
Community
Services
$25,000
$25,000 $25,000
Homelessness
prevention
Pending
Application
Process
$81,823
$81,823 $81,823
Homelessness
prevention
Interfaith
Community
Services
$180,000 $180,000
Previously in
employment
& benefits
Rapid re-
housing
Community
Resource
Center
$76,208 $1,171,704 $314,635 $1,562,547 $2,019,285
Homelessness
prevention
Brother
Benno’s $20,000
$20,000 $20,000
Rapid re-
housing
Community
Resource
Center
$175,000 $1,081,515
$1,256,616 $471,852
Supportive
housing
Community
Resource
Center
$401,779
$401,779 $375,755
Housing Assistance $231,891 $81,823 $61,000 $0 $1,526,693 $0 $76,208 $1,171,704 $314,635 $3,644,055 $3,577,182
Nov. 13, 2025 Item #3 Page 11 of 12
CITY OF CARLSBAD
HOMELESSNESS ACTION PLAN
FY 2026-27 FUNDING PLAN
Activity Provider GF CDBG¹ HTF PLHA HUD² Opioid
Funds
ERF 2-R³
Carlsbad
Village
ERF 3-R³
(OS)
ERF 3-R³
(VHOP)
FY 26-27
TOTAL
FY 25-264
TOTAL
Be
n
e
f
i
t
s
&
Em
p
l
o
y
m
e
n
t
Employment
& Benefits
Specialist
Community
Resource
Center
$140,000 $140,000 $140,000
Benefits & Employment $140,000 $0 $0 $0 $0 $0 $0 $0 $0 $140,000 $140,000
Ci
t
y
S
e
r
v
i
c
e
In
f
r
a
s
t
r
u
c
t
u
r
e
Abandoned
trash clean
up
Urban
Corps $100,000 $100,000 $92,889
Portable
restrooms
Rocket
Johns $25,000 $25,000 $25,000
City service Infrastructure $125,000 $0 $0 $0 $0 $0 $0 $0 $0 $125,000 $117,889
Ci
t
y
S
t
a
f
f
⁶
Homeless
Outreach
Team
City of
Carlsbad
PD
$2,242,468⁴ $2,242,468⁴ $2,135,684
Homeless
Services
City of
Carlsbad
HHS
$279,444⁵$62,540 $145,259 $108,668 $164,512 $760,423 $724,212
City Staff6 $2,521,912 $0 $0 $0 $62,540 $0 $145,259 $108,668 $164,512 $3,002,891 $2,859,896
Total $3,653,628 $81,823 $101,000 $200,000 $1,589,233 $100,000 $605,034 $1,734,308 $769,625 $8,834,812 $9,128,427
¹ CDBG public service dollars estimate is based on current fiscal year allocations and are subject to change. This amount is estimated to range 5% above or below based on
allocation and program income.
² HUD grant estimates are contingent on grant renewal for the FY2026-27 term
³ ERF is a 3-year grant. Costs are based on one-year estimates of spending for FY 2026-27 per the remaining balance of unexpended funds.
⁴ Amended from original estimates to reflect most current numbers.
⁵ Temporary general fund decrease due to ERF grant 3-year term.
⁶Personnel figures are estimates based on a general 5% year over year percentage increase, and are subject to change.
GENERAL NOTE: These are estimates as of the date of this report. There may be minor changes made to the budget scheduled to be presented for City Council consideration in May 2026.
Nov. 13, 2025 Item #3 Page 12 of 12
Nov. 13, 2025
Chris Shilling, Homeless Services Manager
Housing & Homeless Services
Jessica Klein, Senior Program Manager
Housing & Homeless ServicesREDUCING HOMELESSNESS
FUNDING PLAN
July 1, 2026 – June 30, 2027
HOMELESSNESS ANNUAL REPORT
29
TONIGHT’S TOPICS
Presentation
Annual Funding Plan
HOMELESSNESS FUNDING PLAN
Activities and Funding Overview FY 2026-27
Activities and funding overview
Percentage of total fundingApproximate budgetActivity
41%$3,644,055Housing assistance
14%$1,264,680Outreach and case management
7%$658,186Shelter
2%$140,000 Benefits and employment
64%$5,706,921Direct services subtotal
25%$2,242,468Police Homeless Outreach Team
9%$760,423 Homeless Services
2%$125,000 City services infrastructure
36%$3,127,891Indirect services subtotal
$8,834,812Total resources
30
DIRECT SERVICE FUNDING
22%
12%
2%
64%
Outreach & Case Management
Shelter
Benefits & Employment
Housing Assistance
31
HOMELESSNESS FUNDING PLAN
Housing Trust Fund
OrganizationAmountActivity
ARS$40,000Bridge to Housing Shelter Network
City of Carlsbad$36,000Housing Navigation
Interfaith Community
Services$25,000Carlsbad Service Center
$101,000TOTAL
32
•Reduction from Current Year
•HUD Continuum of Care Funding
•Carlsbad Service Center Transition
HOMELESSNESS FUNDING PLAN
Changes
33
Adopt a resolution recommending the approval of the Fiscal
Year 2026-27 Homelessness Action Plan Funding Plan and
the Housing Trust Fund expenditures therein.
HOMELESSNESS FUNDING PLAN
Request
34
Questions
HOMELESSNESS FUNDING PLAN
35