With a 4-1 vote last Wednesday, the Encinitas City Council pulled the plug on a state encampment resolution grant application that city staff had been gearing up to submit. The move effectively sidelines a draft plan that staff said would have funded outreach and housing work near freeway corridors and parks, even as the state's application window closes on June 30. Supporters argued the money could boost outreach and open more paths into sober living and other housing, while opponents countered that state rules and priorities did not match what Encinitas needs on the ground.
Staff proposal and targets
City staff had urged the council to authorize the City Manager, working with the city attorney, to submit an application to the California Department of Housing and Community Development's Encampment Resolution Funding Round 5. The draft outlined partnerships with regional outreach providers to help move people from encampments into shelter, interim housing and sobriety programs. Staff materials flagged encampment clusters along Interstate 5 between Manchester Avenue and La Costa Avenue, around the downtown transit center, and in the 44-acre Encinitas Community Park near Santa Fe Drive as primary focus areas. Those details and the draft application are included in the city's meeting packet, according to the City of Encinitas.
Council debate and vote
The council split sharply over whether to chase state money for the work. Deputy Mayor Jim O'Hara and Mayor Bruce Ehlers questioned whether the grant requirements would mesh with local efforts, while Councilmember Joy Lyndes, the lone no vote on stopping the application, called submitting it a "no-risk option" because the city could always decline an award later if the terms were not acceptable. The draft application put the ask at about $3.9 million and described outreach meant to reach roughly 100 people over a four-year program, as reported by The San Diego Union-Tribune.
How the state program works
The HCD Encampment Resolution Funding program offers competitive awards to cities, counties and continuums of care to back outreach, interim housing and supportive services. Round 5 applications are being accepted on a rolling basis through June 30, 2026. The state's notice of funding availability prioritizes encampments on state right of way and scores applications on things like delivery capacity, partnerships and project timelines. Full program rules and deadlines are available from the California Department of Housing and Community Development.
Local partners and outreach
Staff framed the draft grant application as a way to scale up work already underway with the San Diego Rescue Mission and other outreach teams. The city has recently tweaked contracts to speed up housing placements, a bureaucratic fix noted by the Regional Task Force on Homelessness. The council packet also asked members to sign off on a letter of support for Rescue Mission grant applications, a request that underscored the group's central role in the city's outreach strategy. Background on those contract changes and the full staff recommendation is included in the same meeting packet.
What comes next
With the HCD window closing this week, the council's vote means Encinitas will not be in the Round 5 applicant pool unless the decision is revisited. Mayor Ehlers said he would rather see the city rely on local funds instead of state dollars, a stance that helped shape the 4-1 outcome. City staff told councilmembers they will follow that direction and, if an award were ever offered, bring any acceptance decision back to the council for a public vote, according to The San Diego Union-Tribune.
