City unveils $7 million plan to combat homelessness

In a recent government meeting, city officials outlined the fiscal year 2025 action plan, which includes budget allocations for three key HUD entitlement programs: Community Development Block Grant (CDBG), HOME, and Emergency Solutions Grant (ESG). The proposed CDBG budget totals over $7 million and is structured according to HUD regulations, which dictate that administrative costs cannot exceed 20% of the overall budget, while public services are capped at 15%. The remaining funds are allocated based on the city's consolidated plan priorities, with 30% directed towards affordable housing, 25% for city projects and nonprofit facilities, and 10% for economic development.

A total of 32 organizations have been recommended for CDBG funding, supporting 34 projects aimed at addressing homelessness services, affordable housing initiatives, and city capital improvements. The HOME program, managed by the San Diego Housing Commission, focuses on housing activities such as construction and first-time homebuyer assistance, with 86% of its budget earmarked for rental housing.

Additionally, the ESG program aims to enhance homelessness services through activities like outreach, shelter operations, and rapid rehousing. The Housing Commission will administer this program, with a proposed allocation of 60% for shelter activities, 32.5% for rapid rehousing, and 7.5% for administrative costs.

These funding recommendations are designed to align with the city's consolidated plan goals and address pressing community needs, particularly in the areas of affordable housing and homelessness support.