City of Vista MOU Extension,
Shelter Options and
Permanent Local Housing Allocation
Program (PLHA) Cycle 2
September 16, 2026
Item 12C
Dr. Crystal Pugh, Homeless Programs Coordinator
Scott Drapkin, Development Services Director
Background
2 C i t y of E n c i n it a s & Vi s t a M O U E x t e n s io n o September 27, 2023: City Council approved MOU between cities of Encinitas & Vista from December 05, 2023 – September 30, 2026, to cooperate on the operation of BCNC.
o August 05, 2026: Vista staff submitted a draft MOU amendment to extend term of MOU to December 31, 2026, to align with the Retread and master lease agreement expiration terms.
o August 17, 2026: Vista staff submitted a cover letter for the MOU indicating Vista’s intent to operate all 48 beds—taking over Encinitas’ 12 beds.
3 B u e n a C re e k N a v i g a t io n C e n t e r ( B C N C ) o January 24, 2024: City Council approved agreement with Retread to operate BCNC through December 31, 2026.
o March 04, 2024: BCNC opened as a low-barrier, adult only shelter. o Shared BCNC operations cost: Encinitas 25%, Vista 75%. o Bed use split: Encinitas has 12 dedicated beds, and Vista has 36 dedicated beds.
o August 25, 2026: Vista City Council approved 12 months of funding for Retread and the master lease to continue operations of BCNC until December 31, 2027.
4 S a n D i e g o R e s c u e M i s s i on ( S D R M )
o November 12, 2025: City Council approved a Professional Services Agreement with SDRM to provide Homeless Response Services within the City.
o May 13, 2026: City Council approved Amendment No. 1 to the existing Professional Services Agreement to add $25,000 for housing navigation.
o August 05, 2026: SDRM awarded $955,000 through HUD Continuum of Care, resulting in 2 extra days of outreach in Encinitas at no cost to the City.
5 P e r m a n e n t L o c a l H o u s i n g A l l o c a t i o n P r o g r a m (P LH A ) o November 16, 2022: City Council approved PLHA Cycle 1 non-competitive funding application and adopted the 5-year (2019-223) PLHA plan. o April 11, 2023: City received award letter from HCD indicating PLHA Cycle 1 funding amount of $665,494 total for 5 years.
o May 24, 2023: City Council accepted PLHA Cycle 1 funding of $665,494. o June 25, 2025: City Council approved contract with HCD for final 2 years of PLHA Cycle 1 funds of $236,309.
o August 13, 2025: City Council authorized PLHA Cycle 1 updated application and adopted the updated PLHA Plan.
o July 20, 2026: City received award letter from HCD indicating PLHA Cycle 2 noncompetitive total funding is +$684,000 for all 5 years. No Housing First shelter requirement tied to this funding.
6 Shelter Option A:
Buena Creek
Navigation Center
(BCNC)
7 B C N C P ro g ra m O v e rv ie w
o Low-barrier, adults-only shelter facility in
North County San Diego, +20 miles from
Encinitas.
o 24 rooms with capacity for 48 individuals, with
12 beds (6 rooms) reserved for Encinitas.
o Encinitas pays for 25% and Vista 75% of
costs.
o Provides interim housing and traumainformed supportive services. o Voluntary services include personal care,
Homeless Court advocacy, limited medical
services, and specialized classes on healthy
habits, boundaries, anger management, and
substance use recovery.
8 B C N C Oc c up a n c y & P l a c e m e n t R a t e s 9 Occupancy Rates Percentage
2026 (January-August) 90%
2025 88%
2024 82%
Since program inception 87%
Total
Placement Rates
Through June 2026
# of people enrolled 158
# of people permanently housed 50
# of people temporarily housed 20
76 # of people returned to
homelessness
R e t re a d Op e ra tio n C os t Fo r 1 A d di tio n a l Ye a r o August 2026, Vista informed staff preliminary total contract cost for Retread to continue BCNC for 1 year would increase by $1M for a new total of +$2.3M.
o Encinitas was responsible for 25% of the cost or +$349k and Vista was responsible for 75% or approx. $1M.
o Retread’s cost increase addresses program gaps: full-time housing navigator, housing navigation services, purchasing a vehicle, flexible funds, move-in support, etc.
o Continuing BCNC for 1 year requires coordination with Vista, and it is unclear whether Vista will maintain the partnership based on their August 25, 2026 motion to operate all 48 beds.
10 B C N C Ye a rly O pe ra t in g C o s t
Encinitas’ 25%
FY 2026-27 Cost
Encinitas’ 25%
FY 2025-26 Cost
Retread $349,000 $575,000
Lease $132,000 $132,000
Utilities $7,758 $8,000
Annual Total $488,758 $715,000
$40,730 $59,583 Average Cost
Per Bed
11 Encinitas FY 2026/27 new 25% cost is +$226k increase Shelter Option B:
San Diego Rescue Mission
(SDRM)
12 S D R M S h e l t e r F a c il it y & R e s i d e nt ia l P r o g r a m o Exclusive use of up to 12 beds at SDRM shelter, +30 miles from Encinitas.
o City only charged for nights beds are occupied.
o 3 years of BCNC data shows beds are not filled 365
nights/year, so costs maybe less.
o Looking for a North County shelter site. Once established, 12 Encinitas beds would be transferred to new location. o Mission Academy, 228-bed 12-month residential
rehabilitation program for individuals and families—no
additional cost.
o City still has access to SDRM’s facilities and Countywide regional shelter networks—no additional cost.
13 S D R M C a lA I M P r o v i de r & C o s t S a v in g s 14 o CalAIM certified provider expands access to personalized medical, behavioral health & housing related supports.
o New services include housing transition assistance & tenancy sustaining supports.
o CalAIM billing results in +5–10% cost savings to City’s existing SDRM contract.
o CalAIM billing may cover cost of 1 full-time SDRM position; major cost savings to existing SDRM contract.
o City-supported grant award adds 2 additional days per week of outreach at no cost to City.
S D R M P l a c e m e n t R a t e s & S h e l te r B e ds C o s t 15 Total Placement Rates
November 2025 - June 2026
# of people enrolled 144
15 # of people permanently
housed
# of people temporarily housed 86
3 # of people returned to
homelessness
Exclusive Use Shelter Beds Annual Cost
Projected
FY 2026-27
Bed Cost Per Night $87
# of Dedicated Beds 12
Annual Total $381,000*
Average Cost Per Bed $31,700
*Maximum cost assuming 100% occupancy for
all 12 beds, 365 days/year.
Shelter Option Cost
Comparison
16 S h e l te r B e d Co s t C o mp a ris o n
17 Projected FY 2026-27 Costs
Option A Option B
Operator BCNC SDRM
# of Reserved Beds 12 12
Bed Cost Per Night $163 $87
Annual Cost Per Bed $59,583 $31,700
Annual Total Cost $715,000 $381,000
Required FY 2026-27 Funding
PLHA Cycle 2 Funding Available $226,587 $226,587
General Funds Required $488,758 $154,203
Cost Difference between Option A & B: $334,000 annually; $27,883 per bed S h e l te r B e d P ro g ra m C o mp a r is o n
18 Program Characteristics & Offerings
Option A Option B
Operator BCNC SDRM
Bed Capacity 48 162
Maximum Duration of Stay 120 days 30 Days
Distance from City Hall 20 miles 30 miles
Case Management X X
Housing Navigation X X
Accepts Children & Families X
Provides Meals X X
CalAIM Provider X
Permanent Local
Housing Allocation
(PLHA)
Cycle 2 Funding Application
19 PLHA Cycle 2 Funding Total
Year 1 $109,532
Year 2 $117,325
Year 3-5 $457,718
5-Year Total $684,575
P L H A C y c l e 2
• Non-competitive 5-year funding cycle. Only requires City Council authorization to submit an application to receive funds. • PLHA Cycle 1 & 2 require low-barrier access to shelter, voluntary additional services, housing focused case management and allows prohibition of substance use/possession on property.
• No Housing First shelter requirement.
• Encinitas allocated funds are
+$685k for all 5 years.
• First 2 years of funding is available for
+$226k, can be spent in first year.
City Council Direction
21 1. Extension of MOU with the City of Vista.
2. Shelter Options:
A: Possible continuation of the BCNC shelter program.
B: Exclusive use of up to 12 beds at SDRM’s shelter.
3. PLHA Cycle 2 funding application & use of funds.
4. Other direction on shelter options and funding allocation.