HomeMy WebLinkAbout2026-05-07; New Regional Funding for Homelessness Diversion Activities (Districts - All); Murphy, JeffTo the members of the:
COUNCIL
Date locA v cc ✓
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May 7, 2026
Council Memorandum
{city of
Carlsbad
Memo ID# 2026024
To:
From:
Honorable Mayor Blackburn and Members of the City Council
Jeff Murphy, Deputy City Manager, Community Services
Mandy M ills, Director of Housing & Homeless Services
Via:
Chris Shilling, Homeless Services Manager
Sheila Cobian, Assistant City Manager ~~
Re: New Regional Funding for Homelessness Diversion Activities (Districts -All)
This memorandum provides information regarding $75,000 in new regional funding the City of
Carlsbad is expected to receive through the Diversion Collective, a countywide flexible funding
pool to help people get into stable housing or remain stably housed. The funding will support
short-term diversion activities to help households experiencing homelessness quickly resolve their
housing crisis when limited financial assistance and light-touch case management can prevent the
need for shelter or longer-term homeless services. The funding was not included in the city's fiscal
year (FY) 2026-27 Homelessness Funding Plan because staff were recently notified of the
opportunity, however, Finance staff have incorporated the funding into the draft
FY 2026-27 Operating Budget.
Background
The County of San Diego recently made a significant investment toward a second round of a
regional Homeless Diversion Fund, leveraging philanthropic partnerships to reach approximately
$2 million in total funding. Other funding partners include the San Diego Foundation, Prebys
Foundation, Cushman Foundation, Jewish Community Foundation, and the City of San Diego.
Collectively, the funds will be called the Diversion Collective, a regionwide flexible funding pool
intended to support diversion activities throughout San Diego County. The San Diego Housing
Commission will administer the funding and contract with participating jurisdictions and service
providers.
The City of Carlsbad is expected to receive $75,000 through the Diversion Collective. The funding
will support short-term diversion activities for people experiencing homelessness when limited
financial assistance and light-touch case management can help resolve an immediate housing
crisis .
The Diversion Collective is similar in concept to the Regional Task Force on Homelessness'
Resolution Strategies Program that the City of Carlsbad participated in during 2024. These
programs are designed to help households quickly access safe and realistic housing options
outside of the traditional shelter system and reduce the need for more intensive homeless
Community Services Branch
Housing & Homeless Services Department
1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 442-339-2810 t
Council Memo -New Regional Funding for Homelessness Diversion Activities (Districts -All)
May 7, 2026
Page 2
services interventions when possible. Diversion may include problem-solving conversations,
housing search support, connection to existing resources, landlord or family mediation, and
limited financial assistance to remove specific barriers to housing.
Discussion
The Diversion Collective will provide the city with an additional flexible tool to help resolve
homelessness in situations where a relatively small amount of assistance can help a household
move into or remain connected to permanent housing. The city will use existing staff and existing
homelessness response activities to implement the funding when diversion is appropriate.
Examples of eligible uses include rental assistance, application fees, background checks, credit
checks, utility deposits or arrears, moving costs, short-term hotel or motel assistance while
awaiting permanent housing, transportation-related costs and work-related supplies. The funding
cannot be used for staff time or administrative costs. The funding is intended for
short-term, targeted assistance and is not designed to provide ongoing rental assistance or
long-term case management.
This funding was not included in the city's FY 2026-27 Homelessness Funding Plan because staff
were recently notified of the opportunity. Because the agreement amount is $75,000, it is within
the City Manager's administrative authority to execute.
Next Steps
Staff will work with the San Diego Housing Commission to finalize the agreement and complete
any required administrative steps. Finance staff have incorporated the funding into the city's draft
FY 2026-27 Operating Budget.
Once the agreement is executed and budget steps are completed, Housing & Homeless Services
staff will incorporate the Diversion Collective funding into existing homelessness response
activities and use the funds for eligible households when diversion is appropriate.
cc: Geoff Patnoe, City Manager
Cindie McMahon, City Attorney
Paz Gomez, Deputy City Manager, Public Works
Laura Rocha, Deputy City Manager, Administrative Services
Zach Korach, Finance Director
Dalton Sorich, Assistant City Attorney