DATE: SEPTEMBER 29, 2026
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: LISA BRINTON, DIRECTOR
THROUGH: ORLANDO REYES, ASSISTANT DIRECTOR
BY: KAYSHLA LOPEZ, HOMELESS SERVICES MANAGER
TITLE: FY 26-27 HOMELESS SERVICES FUNDING AGREEMENTS FOR THE RENTAL ASSISTANCE PROGRAM RECOMMENDED MOTION:
A motion to approve two Resolutions authorizing:
the City Manager to execute a Homeless Services Funding Agreement with the Monterey County Office of Education for the administration of the Rental Assistance Program in an amount not to exceed $300,000, funded through General Fund appropriations, and to execute any associated documents necessary to effectuate the agreement, subject to review and approval as to form by the City Attorney; and the City Manager to execute an amendment to a Homeless Services Funding Agreement No. 26GF03 with the Eden Council for Hope and Opportunity for the administration of the Rental Assistance Program to increase the funding by $100,000 for an amount not to exceed $200,000 for FY 26-27, funded through General Fund appropriations, and to execute any associated documents necessary to effectuate the agreement, subject to review and approval as to form by the City Attorney.
EXECUTIVE SUMMARY:
The Community Development Department (CDD) seeks authorization to enter into a funding Agreement with Monterey County Office of Education (MCOE) and amend the existing agreement with Eden Council for Hope and Opportunity (ECHO) for the Fiscal Year 2026-2027. These agreements will continue to support homelessness prevention, housing stabilization, and eviction prevention services for Salinas residents during FY 2026-27. Collectively, the programs are expected to serve a minimum of 115 households and 272 individuals. Actual assistance amounts may vary based on household need.
BACKGROUND:
On December 2, 2025, the Salinas City Council authorized the Community Development Department (CDD) to launch the Pilot Rental Assistance Program (RAP) to prevent homelessness through short-term rental assistance, housing stabilization services, and eviction prevention interventions such as fair housing, tenant rights education, housing counseling, landlord engagement, and community outreach to create a comprehensive homelessness prevention model that addresses both immediate housing crises and long-term housing stability.
The Salinas Outreach and Response Team (SORT) led the development and initial implementation of the pilot establishing the program’s eligibility criteria, application and documentation requirements, and procedures for issuing rental assistance. SORT provided technical assistance and program guidance to the MCOE and ECHO to support implementation of the RAP model across partner agencies. Contracting with community partners expanded the City’s service capacity and enabled the City to promptly respond to an increasing number of requests for support with housing and homelessness.
Rental Assistance Program
In FY 2025-26 the Pilot Rental Assistance Program assisted 257 households, including 203 families and 54 single-adult households surpassing the program goal of 138 households by 119 or approximately 86%. A total of 517 individuals were served through the program. Among households that received rental assistance, 96.9% remained housed following assistance, demonstrating a high rate of housing retention. Applications were processed in an average of 10 days, supporting timely intervention for households at risk of losing their housing. Programming outcomes demonstrated significant demand for homelessness prevention services within the City of Salinas. These outcomes are illustrated in Table 1 below.
Table 1. FY 2025-26 Pilot Rental Assistance Outcomes
January 2026 – June 2026
Agency
Funding Source
Allocation
Expenditures to Date
% Spent
Household Goal
# of Households Served
#of individuals served
MCOE
Family Homeless Challenge (FHC)
$250,000
$210,661
84%
N/A
40 194
ECHO
General Fund
$98,337
$76,075
77%
N/A
19 19
Salinas Outreach and Response Team (SORT)*
General Fund
$401,663
$247,426
62%
N/A
35 35
FHC
$500,000
$302,117
60%
N/A
163
269
Total
$1,250,000
$836,280
67%
138
257
517
The City of Salinas has highlighted the effectiveness of targeted rental assistance in preventing displacement and reducing entries into homelessness. Based on program performance and community needs, City Council allocated $500,000 in General Funds through the Biennial Budget process on June 16, 2026, through Resolution No. 2026-098, to continue the RAP through FY 2026-27. Staff recommend continued investment in homelessness prevention services through partnerships with MCOE and ECHO during FY 2026-27.
Monterey County Office of Education
The MCOE Connections Program was established in 2025 to provide wraparound services and housing stabilization assistance to vulnerable families experiencing homelessness within Monterey County school districts. City funding supports a two-pronged approach focused on preventing and addressing family homelessness among students residing in the City of Salinas. Through prevention and emergency stabilization services, the program seeks to reduce the number of homeless students and support families in maintaining or regaining stable housing.
Following the Biennial Budget adoption in June 2026, staff identified an additional $200,000 in Family Homeless Challenge (FHC) grant funding available for rental assistance. Because the FHC funds must be expended by September 30, 2026, staff prioritized use of the time-limited grant funds before General Fund dollars. For Fiscal Year 2026-27, the City intends to provide an additional $300,000 in General Fund appropriations, bringing the City’s total funding commitment to the Rental Assistance Program through the MCOE Connections Program to $500,000. City Council authorization is required because the cumulative value of the agreements with MCOE exceeds the City Manager’s contracting authority. MCOE was selected due to its established relationships with the Salinas Outreach and Response Team, Continuum of Care participation, and its integration into school districts, and its ability to identify and assist families experiencing homelessness through the McKinney-Vento Program. Table 2 below outlines funding source, eligible use, allocation amount and MCOE rental assistance goals for FY 2026-27.
Table 2. MCOE Pilot Rental Assistance Goals
FY 2026-27
Agreement Status
Funding Source
Eligible Use
Allocation
Household Served
Individuals Served
Executed
Family Homeless Challenge (FHC)
Rental Assistance
$200,000
30 87
Pending Council Approval
General Fund
Rental Assistance
$245,000
35 105
EHP
$20,000
15 45
Program Admin
$35,000
NA
NA
Total
$500,000
80 237
The FY 2026-27 agreement with MCOE using General Funds includes the following performance metrics:
Homelessness Prevention Assistance – $245,000: Provide short-term rental assistance to a minimum of 35 Households with children at immediate risk of homelessness due to temporary financial hardship, representing approximately 105 persons based on an assumed three-person household. The performance target is based on an estimated average assistance amount of approximately $7,000.00 per Household.
Emergency Hotel Assistance - $20,000: Provide temporary emergency hotel assistance to up to 15 households with children experiencing immediate homelessness following an eviction and who have no safe or appropriate alternative housing options.
Program Administration – $35,000: Provide funding for eligible indirect costs associated with the administration and implementation of the Connections Program.
Eden Council for Hope and Opportunity
ECHO has been a subrecipient of the City Community Development Block Grant (CDBG) since 2021 providing Fair Housing and Tenant and Landlord Mediation Services to Salinas residents. In FY 2025-26, ECHO expanded their scope in Salinas to support the City’s Rental Assistance Program (RAP) in collaboration with SORT. ECHO provides rental counseling and housing stabilization services that complement direct financial assistance by addressing underlying housing barriers that may otherwise result in displacement or homelessness.
ECHO has also partnered with the City to expand community education and outreach regarding housing rights. During calendar year 2026, ECHO and City staff have been providing Housing Rights Workshops and community presentations through Salinas to educate landlords and tenants regarding rental registration requirements, rent stabilization, petition procedures, allowable rent increases and fair housing protections. Outreach included community discussions in Council Districts 1, 2, and 3, as well as engagement though CBDIO, LULAC, National Night Out, El Puente School, the Rotary Club, City Hall, and other Community events. These efforts are supplemented by individual assistance provided through telephone consultations, email correspondence, and in-person customer service. On July 1, 2026, the City entered into agreement No. 26CDBG01 in the amount of $100,000 in CDBG Funding to continue ECHO’s provision of Fair Housing and Tenant and Landlord Mediation Services to Salinas residents. For FY 2026-27, the City has entered into two separate agreements with ECHO for Rental Assistance.
On July 1, 2026, the City executed Agreement No. 26FHC03, with an end term of September 30, 2026, in an amount of $28,368.22 to continue administration of rental assistance in line with the FHC grant expenditure timeline. Additionally, the City entered into agreement No. 26GF03 in an amount of $100,000 from General Funds to administer and provide rental assistance. The City intends to increase agreement No. 26GF03 from $100,000 to $200,000 in General Fund appropriations to augment the services ECHO provides through the Rental Assistance Program. Table 3 below outlines funding source, eligible use, allocation amount and ECHO’s rental assistance goals for FY 2026-27.
Table 3. ECHO Pilot Rental Assistance Goals
FY 2026-27
Agreement Status
Funding Source
Eligible Use
Allocation
Household Served
Individuals Served
Executed
Family Homeless Challenge
(FHC)
Program Admin
$28,368
NA
NA
Executed
General Fund
Rental Assistance
$100,000
35 35
Pending Council Approval
General Fund
Rental Assistance
$50,000
Program Admin
$50,000
NA
NA
Total
$228,368
35 35
Agreement No. 26GF03 with ECHO will include the following performance metrics:
Homelessness Prevention Assistance – $150,000: Provide short-term rental assistance to a minimum of 35 Households without minor children at immediate risk of homelessness due to temporary financial hardship. The performance target is based on an estimated average assistance amount of approximately $4,259 per Household.
Program Administration – $50,000: Provide funding for eligible staffing costs associated with the administration and implementation of the Rental Assistance Program.
Draft funding agreements and amendments for FY 2026-27 are attached to this staff report. Under the terms of the agreement, compensation will be provided as described in Exhibit B of each agreement. Any additional agreements for future scope of work will be negotiated and then executed following Fiscal Year.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
CALIFORNIA GOVERNMENT CODE §84308 APPLIES:
No.
STRATEGIC PLAN INITIATIVE:
The proposed Funding Agreements directly support the Salinas City Council 2025-2028 strategic goals under Housing. These partnerships advance the City's goal to promote housing stability and supportive services for unsheltered residents and reinforce the City's commitment to promoting equitable access to essential services.
DEPARTMENTAL COORDINATION:
Preparation of this agenda item was led by the Community Development Department (CDD), Housing Division in consultation with the City Manager’s and City Attorney’s office.
FISCAL AND SUSTAINABILITY IMPACT:
The funding for the Rental Assistance Programs in the amount of $400,000 for MCOE & ECHO is appropriated in the FY 2026-27 operating budget.
Fund
General Ledger Number (Operating/CIP)
General Ledger Account Name
Remaining Budget Appropriation
Amount Requested
1000
80.8005-69.1650
Financial Assistance Rental Assistance
$100,000
$100,000
1000
80.8005-69.1461
Monterey County Office of Education
$300,000
$300,000
ATTACHMENTS:
Resolution – MCOE Connections Program
MCOE - Homeless Services Funding Agreement
Resolution – ECHO Rental Assistance Program
ECHO – Amendment to Agreement No. 26GF03
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