El Cajon’s City Council has turned its back on a chunk of state money that most cities would at least think twice about taking. In a 4 to 1 vote this week, the council told staff not to apply for roughly $5.3 million in Encampment Resolution Funding that would have paid to clear homeless camps and expand outreach along Interstate 8 and the State Route 67 corridor. Council members in the majority said the grant came with conditions that would tie the city’s hands on how it runs shelters and outreach.
Council vote and local split
According to The San Diego Union‑Tribune, the motion directing staff not to apply for the grant passed 4 to 1. Councilman Bill Wells criticized the state’s Housing First framework as a tremendous failure, arguing the approach has not delivered the results Sacramento promised. Councilman Gary Kendrick, the lone no vote, countered that five million dollars is a lot of money. The paper reported that the proposed grant would have targeted Caltrans rights‑of‑way along I‑8 and SR‑67.
Why the grant was controversial
Materials from the California Department of Housing and Community Development show that Round 5 of the Encampment Resolution Fund puts a heavy emphasis on low‑barrier, person‑centered Housing First strategies and prioritizes projects that take on encampments on state right‑of‑way. HCD’s first application window ran through June 30, with awards expected in September and a possible second round this fall if money is still available. That mix of required outcomes, strict focus areas and detailed reporting helped fuel the argument at City Hall over how much control El Cajon would be giving up.
City moves to expand local services
City documents show the council has already been steering local and state Permanent Local Housing Allocation funds into outreach and emergency shelter this year. That includes a two‑year contract worth up to $500,000 with Family Health Centers of San Diego for street outreach, and a $210,261.84 agreement with the San Diego Rescue Mission to operate an emergency shelter and navigation center. City leaders argued these locally crafted deals give El Cajon more direct say over where services are located and what rules they follow than an Encampment Resolution Fund award would. Officials said the goal is to grow shelter space and medical outreach while avoiding the state conditions that come with ERF money.
Rescue Mission and shelter plans
The San Diego Union‑Tribune also reported that the San Diego Rescue Mission is scouting sites in El Cajon for a new emergency facility that would expand its network of 30‑day shelters, a detail that surfaced during the council’s discussion. Supporters of applying for ERF said the grant could have rapidly scaled up outreach along key corridors. Opponents argued the city should stick with the contracts it already controls rather than adjusting to a state‑designed program. With the council majority opting out of an ERF application, those local agreements remain the main vehicle for adding shelter capacity in the near term.
Regional context
The Regional Task Force on Homelessness noted that nearby Encinitas recently turned down roughly $3.9 million in Encampment Resolution Funding in late June, even as Carlsbad, Oceanside and Vista have already used earlier ERF awards to clear encampments and move people into shelter or housing. That split decision‑making across the county highlights how politically charged ERF has become in local debates. Different cities are drawing different lines on whether the state’s strings help sharpen their efforts or simply get in the way.
What happens next
With HCD’s first funding window closed, city officials still have the option of revisiting an application if the state opens a second round this fall, according to the agency’s ERF guidance. In the meantime, staff say they will press ahead with the outreach and shelter contracts the council has already approved while keeping an eye on future state opportunities. Both supporters and critics of the council’s decision warned that walking away from ERF money could mean encampments stay longer in high‑traffic corridors if shelter capacity does not increase quickly enough.
El Cajon’s vote highlights a growing local debate over whether to accept state money with strings attached or double down on homegrown programs, a tension that is reshaping how East County plans to handle encampments this year.
