City Council Joins Other Elective Bodies Calling for Accountability on Homeless Spending

The Lodi City Council deliberated on the operator agreement for a transitional housing project on Main Street slated to open in October 2024. This initiative underscores the evolving perspectives on investing in temporary or transitional housing for our unhoused community members. Like many legislative bodies across California, the Lodi City Council is adopting a more critical approach to funding initiatives for the unhoused. A much greater focus is being placed on the financial sustainability of such projects and programs, and on how their success is being defined and reported back to officials and residents.

Several grants received in recent years, including this one, are approaching deadlines for completing capital projects and bringing them into operation. This necessitates challenging discussions on long-term funding strategies. Previously approved in a time of robust state funding for homelessness services, these projects now face scrutiny amidst California's historic budget deficit and reduced program funding, including potential clawbacks.

The city's recent Request for Proposals (RFP) yielded a single response from Inner City Action, the current operator of the temporary access center on Sacramento Street. The estimated annual operating cost stands at $350,000.

Grants as a source of financing for shelters and services related to the unhoused can muddy the discussion around who ultimately is paying the bill. The grants for this specific facility, $3M from the Health Plan of San Joaquin & $500K grant that is pending from Congressman Harder’s office, are taxpayer dollars that are flowing from mostly the Federal and State levels. Though they do not come directly from our local general fund, the funds do come from our personal and business income taxes. Scrutiny over grant spending must mirror that of local general funds, with careful consideration of opportunity costs between competing programs.

In the case of the Main St property, both the local Salvation Army and the Housing Authority of SJ County said that the $350K would not cover their operational expenses and declined to respond to the RFP. This brings into question the ability of the operator to keep up with the maintenance of the project and to protect the asset that is held by the city. The city is already going to be funding the operation of the Access Center when grant funds run out some time around year end of 2026.

There was also concern around the reporting process and metrics being shared with the council from the current temporary access center. Inner City Action has been reporting success stories and data on day services provided, overnight stays, meals served, and other data to the Lodi Committee on Homelessness, but not officially to the full council. Unfortunately, Inner City Action representatives were not present at last night’s meeting to answer questions and address the council’s concerns. This played into the perception of a lack of transparency and caused official action to be postponed until the next meeting.