Camarillo City Council
AGENDA REPORT
Date: April 9, 2025
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: Carmen Nichols, Assistant City Manager
Subject: Ratification of Encampment Resolution Fund Grant Award
BACKGROUND
The Encampment Resolution Fund Grant (ERF) is a state-administered program designed to assist local governments in addressing homelessness through the resolution of unsheltered encampments. The funding supports comprehensive strategies that prioritize the safety and well-being of individuals experiencing homelessness while working towards sustainable housing solutions.
In accordance with the City Council’s direction to pursue funding opportunities to address homelessness in the City of Camarillo, staff applied for the ERF grant to address an encampment of motor homes located on Pleasant Valley Road and Calle San Pablo. The application and request of $7,305,292.89 outlined a strategic approach to encampment resolution, including outreach services, housing navigation, temporary housing, and permanent housing placements. The proposed plan involves construction of the already entitled 9 units of affordable housing on a currently vacant city-owned property at 264 Arneill Road by March 2027, and provides interim housing to program participants through hotel vouchers along with comprehensive case management services provided by the Project Hope team and an additional case manager contracted through the County of Ventura.
On June 20, 2017, the City acquired the property using legacy Redevelopment Funds with the ultimate purpose of developing an affordable housing project. The project was approved by the Planning Commission on June 6, 2023, and after entitlement, City staff began pursuing grant funding opportunities to fund construction.
On December 23, 2024, the City was notified of the California Department of Housing and Community Development’s (HCD) decision to award the funds and on February 26, 2025, HCD provided Agreement No. 24-ERF-4-L-10012 (CC 2025-12) for City Council ratification.
Encampment Resolution Fund Grant
April 9, 2025
DISCUSSION
The Encampment Resolution Fund grant presented a critical and timely opportunity for the City of Camarillo to comprehensively address the persistent challenges of vehicle- based homelessness within the community. As the encampment along the 2000 block of Pleasant Valley Road and Calle San Pablo has grown increasingly complex over two years, becoming a source of environmental, health, and safety concerns, the ERF grant offered a unique funding mechanism to implement a holistic intervention strategy. Unlike traditional homeless support programs, this grant specifically enables the City to not only provide immediate temporary housing and support but also develop permanent affordable housing opportunities, offering a sustainable solution to long-term housing instability.
Encampment Description
The encampment identified for the grant spans the northern section of the 2000 Block of Pleasant Valley Road, extending to the Calle San Pablo cul-de-sac and bordering agricultural fields. As of early March 2025, 16 motor homes and 29 individuals occupy approximately a quarter mile, stretching from the train tracks to Southfield Road. Project Hope provides weekly outreach to this area, connecting clients to essential services and resources including case management, social services, behavioral health services, and housing navigation. Notably, many of the encampment residents are employed or receive social security benefits, but face extreme housing affordability challenges, unable to secure permanent housing despite having income. The proposed grant offers these working individuals a critical opportunity to transition into stable, affordable permanent housing that matches their economic circumstances.
Each vehicle houses one to three individuals and several house multiple pets, creating a densely populated area lacking basic infrastructure. With no public restrooms and the nearest food source a mile away, the site presents significant sanitation challenges.
Improper motor home connections, absent running water, and inadequate waste management have raised environmental and public health concerns. The City and Sheriff's Office regularly respond to complaints about garbage accumulation, pet waste, and illicit vehicle discharge contaminating streets and storm drains.
Key Activities
Interim Housing
The Encampment Resolution Grant Fund will allow the City to implement a multi-faceted approach to addressing homelessness in Camarillo. One key component of the program is the provision of interim housing through hotel vouchers. This will serve as a crucial first step in stabilizing individuals currently residing in the encampment. Clients will transition into interim housing in two phases, with those who are closer to obtaining permanent housing moving into hotels rooms first. This allows these individuals to stabilize quickly, freeing up resources for additional clients. During their stay in temporary housing, participants will be required to engage with Project Hope to receive case management and access essential wraparound services. These services include healthcare, Encampment Resolution Fund Grant
April 9, 2025
behavioral health support, employment assistance, and help navigating the housing system. Each client will develop a personalized case plan aimed at overcoming barriers to permanent housing, such as financial instability and credit challenges. Ultimately, the goal is to transition all participants into permanent housing, including placements within the Arneill Road project and other housing opportunities throughout the county.
Outreach and Engagement
The ERF grant will enable the City to significantly enhance its homeless outreach and case management capabilities through the addition of a dedicated case manager within the Project Hope team. This expansion will facilitate comprehensive support for the 29 residents currently residing in the encampment, beginning with systematic HMIS documentation and individualized case management plans. The Project Hope team will implement a holistic approach to client support, providing targeted referrals, healthcare and behavioral health connections, and ongoing assistance designed to address each resident's specific barriers to housing stability.
By dedicating additional resources to direct client engagement, the City aims to create a sophisticated support system that transcends traditional outreach methods. The new case manager will work collaboratively with existing Project Hope team members to develop personalized strategies for each individual, focusing on establishing clear pathways to interim and permanent housing, addressing personal challenges, and supporting comprehensive life stabilization through tailored, consistent professional support.
Construction of Affordable Housing
A cornerstone of the program is the creation of a housing continuum for individuals transitioning from homelessness through the development of nine affordable housing units on a vacant city-owned lot at 264 Arneill Road, located between Jiffy Lube and Brakemasters. The project was originally entitled in June 2023 and will include on-site space for Project Hope and other service providers to meet one-on-one with clients. Upon approval of the grant award, the City will initiate an RFP process to select a builder and operator for the project. These contractors will oversee construction and property management. The City will retain full ownership of the project, allowing Project HOPE to make direct housing referrals and provide ongoing supportive services to residents.
Data Tracking and Reporting
The program will establish rigorous accountability and performance measurement through the County's Coordinated Entry System (CES) and Homeless Management Information System (HMIS). These data tracking platforms will enable comprehensive monitoring of client outcomes, service utilization, and program effectiveness across multiple dimensions. HMIS will facilitate systematic documentation of key performance indicators, including client demographics, service engagement, housing transitions, and long-term stability metrics.
Encampment Resolution Fund Grant
April 9, 2025
Project Costs
The ERF award of $7,305,292.89 will primarily support the development of the 9-unit permanent supportive housing development, including $6,020,492.89 for construction costs. Additional funds will address immediate needs through hotel vouchers for temporary housing, street outreach services provided by Project Hope, and case management through the Ventura County Health Care Agency. The project also includes provisions for temporary RV storage during the transition period, security infrastructure, and essential operational staffing once the development opens. These efforts are complemented by $4,322,434.74 in leveraged funds, including the City-purchased land ($1,113,904), pre-development costs ($557,934.74), and other resources the City already provides through Project Hope, maximizing the impact of the ERF investment in addressing homelessness in Camarillo.
The Arneill Road Mixed Use Project site was acquired with legacy Redevelopment Funds from the Low and Moderate Income Housing Asset Fund. These funds are regulated by SB 341, which requires 80% of the funds be used to create residential units restricted to households earning below 60% of Area Median Income (AMI) and requiring at least 30% of the funds be spent creating residential units restricted to 30% of AMI (two overlapping requirements). In order to satisfy the spending requirements in SB 341, the project is comprised of 9 very low-income units.
Acceptance of the ERF grant award will enable the construction of the Arneill Road affordable housing development, providing critical housing resources for the community.
Staff estimates the operating budget for the project to total $106,628 in the first year after completion, based on the cost of a similar project in the City of Camarillo. This amount includes management costs, maintenance, administrative expenses, utilities, and insurance. Based on a 5-year projection, the total operating cost would increase to $124,740 in FY 2031-32.
Factoring in a conservative vacancy rate estimate of 10%, staff estimates a total of $61,139 will be collected in the form of rent in year one and $71,524 in year five. Between the projected total operational cost and the projected rent, the project would operate at a net annual deficit of $45,489 in the first year, and $53,216 in year five. A funding mechanism to support the remaining operational deficit for the project is yet to be identified despite ongoing monitoring of potential grant funding opportunities. Staff will pursue additional grant funds as available, but if grant funding cannot be identified before project completion, general fund dollars would be requested to continue operation.
On the following page, Table 1 shows projected operating expenditures, rent (revenue), and the projected deficit over the next five fiscal years.
Encampment Resolution Fund Grant
April 9, 2025
Table 1. Projected Operating Expenses, Rent, and Deficit by Fiscal Year 2027-28 $106,628 $61,139 $45,488
2028-29 $110,893 $63,585 $47,308
2029-30 $115,329 $66,128 $49,200
2030-31 $119,942 $68,773 $51,168
2031-32 $124,740 $71,524 $53,215
Total $577,532 $331,149 $246,379
Conformance with Adopted City Council Policies
Council Goals and Objectives
Community Enrichment Objective 1.b: Develop and implement appropriate education, enforcement and assistance strategies to address homeless and mental health issues.
The ERF grant supports this objective by funding a comprehensive strategy that combines education, enforcement, and assistance to address homelessness and mental health issues, ensuring individuals receive necessary services while transitioning into stable housing solutions.
Community Enrichment Objective 1.c: Maintain the City’s involvement and collaboration with the VC Sheriff’s Department, VC Behavioral Health, and other agencies for assistance, as appropriate, in helping law enforcement respond to homelessness and calls involving mental health issues.
The ERF grant supports this objective by strengthening collaboration with the Ventura County Sheriff’s Department, Ventura County Behavioral Health, Ventura County Health Care Agencies, and other partners for the delivery of services to encampment residents, ensuring a coordinated approach to addressing homelessness and mental health through outreach, case management, and law enforcement support.
Economic Development Strategic Plan
Community/stakeholder workshops and a community online survey key weakness/challenges: Lack of sufficient affordable housing.
The ERF grant will address this community concern by providing interim and long-term affordable housing opportunities to the local unhoused population. 2021-2029 Housing Element
Housing Program 17: Develop a Strategic Plan for providing Emergency and Transitional Housing to accommodate the homeless community in Camarillo, based on the Ventura County point‐in‐time count which identifies resources and potential locations for developing emergency and transitional housing in Camarillo.
Encampment Resolution Fund Grant
April 9, 2025
The ERF grant will support this program by facilitating the provision of interim housing.
The ERF grant provides funding at no cost to the City’s General Fund. The grant award will be administered in accordance with state requirements and will be used to support designated programs as indicated in the grant agreement.
FISCAL IMPACT
Award of the grant will result in $7,305,292.89 additional revenue to the City. The grant funds will primarily support the development of the 9-unit permanent supportive housing development. While the grant will cover the initial cost of the program, it will not cover all operational costs in future years.
It is estimated that the operational cost to run the supportive housing development that will not be covered by the grant will be no less than $246,379 and no more than $577,532 between Fiscal years 2027-28 and 2031-32 as shown in Table 1. This will be a General Fund expenditure and will be included in future annual budgets if approved.
CEQA DETERMINATIONS
City staff determined, in accordance with Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, that acceptance of the Encampment Resolution Fund grant award is not subject to CEQA review because it can be seen with certainty that there is no possibility that the grant award may have a significant effect on the environment. In this case, grant acceptance can be seen with certainty to have no possibility to have a significant effect on the environment. Therefore, this item is exempt from CEQA.
RECOMMENDATION
1. Ratify Agreement No. 24-ERD-4-L-10012 (CC 2025-12) for acceptance of the Encampment Resolution Fund grant award in the amount of $7,305,292.89.
2. Authorize the City Manager to take all necessary actions on behalf of the City in furtherance of the Encampment Resolution Fund grant program.
3. Authorize the City Manager to make any necessary adjustments to the FY 2024-25 budget to recognize the revenue and expenditures related to this grant.
ATTACHMENTS
1. Agreement No. 24-ERF-4-L-10012 (CC 2025-12)
REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None