TO:Andrew P. Powers, City Manager
FROM:Kelvin Parker, Community Development Director
DATE:June 23, 2026
SUBJECT: Navigation Center Housing Successor Fund Budget RECOMMENDATION:
1. Approve budget appropriation and authorize expenditure in FY 2025-26, in the amount of $250,000 from A/C #163-0000-311-1000 (Housing Successor Fund – Fund Balance) to A/C #165-4630-644-5699 (Housing Successor Fund – Contracted Services) (Project #HSNAVI) for operating and construction costs at the Navigation Center.
2. Authorize the City Manager to execute reimbursement agreements not to exceed $250,000 in total with Many Mansions and Hope The Mission, and any other related documents necessary to encumber funds prior to June 30, 2026, for operating and construction costs for the Navigation Center, subject to approval by the City Attorney.
3. Find that these actions are not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: Yes
FINANCIAL IMPACT:
$250,000 Increase to Adopted FY 2025-26 Housing Successor Fund Budget. $250,000 increase to the Adopted FY 2025-26 Housing Successor Fund Budget is requested for operating and construction costs associated with the Navigation Center. $1.2 million was included in the Adopted FY 2025-26 General Fund Budget for operating costs while anticipated operating costs for the first-year total $1.3 million. No budget was included for additional costs for construction that was not completed in FY 2024-25.
Navigation Center Housing Successor Fund Allocation
June 23, 2026
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BACKGROUND:
The City has continued to evaluate strategies to address homelessness in Thousand Oaks, including both permanent supportive housing and interim housing options. City Council has identified homelessness response and housing solutions as ongoing priorities, and prior City Council actions have included the use of Housing Successor Fund resources for acquisition and construction-related housing activities. Housing Successor funds are strictly regulated by state law and are mainly restricted for use in homelessness prevention and affordable housing projects.
The City’s Navigation Center is located on a City-owned parcel at 1205 Lawrence Drive. The existing facility includes modular homes with 30 beds, administration office and onsite clinic units, laundry and shower facilities, furnishings, storage, and other necessary equipment. The City was awarded a State Encampment Resolution Grant in the amount of $5.8 million to cover construction and operating costs of the Navigation Center.
At the January 16, 2024, City Council meeting, City Council approved an operating agreement with Hope of the Valley (now Hope The Mission) to provide operating and supportive services to the Navigation Center. The Navigation Center, named Thrive Grove, officially opened on June 9, 2025, and is consistently fully occupied.
DISCUSSION/ANALYSIS:
Health and Safety Code section 34176.1 governs the use of the City’s Housing Successor Fund. Annually, the City performs an excess surplus calculation as required by the Code. Excess surplus funds may only be spent on qualifying affordable housing projects and must be encumbered to a project within 3 years.
Based on the estimated FY 2025-26 excess surplus calculation, the City’s Housing Successor Fund is expected to have an excess surplus if no further qualifying expenditures are made in FY 2025-26. To maintain the greatest flexibility in the use of the funds, the best course of action is to spend or encumber potential excess surplus funds prior to June 30, 2026. One of the eligible uses of housing successor funds is for homelessness prevention services and construction of local shelters.
The Operating Agreement with Hope The Mission currently provides for an annual operating budget of $1.2 million for FY 2025-26, to increase annually based on Consumer Price Index. Hope The Mission anticipates actual costs in the amount of $1.3 million this fiscal year. While the Operating Agreement requires Hope The Mission to fundraise any gap between the approved budget and actual costs, their fundraising campaign for Thrive Grove this year was not successful enough to close the operating gap.
Navigation Center Housing Successor Fund Allocation
June 23, 2026
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In addition to the operating funding gap with Hope The Mission, some of the FY 2025-26 operating costs were not eligible for reimbursement by the City’s State Encampment Resolution Grant and were instead paid for by General Fund dollars.
The expenditures can be paid for by the Housing Successor Fund instead of the General Fund.
Finally, there are certain capital improvements that were not completed during initial construction due to budget constraints. The improvements to the property enhance the safety and security of the site. These include raising the fence by the dog run, adding a new gate, and adding handrails to the entrances for each unit.
Many Mansions, as the leaseholder to the property and owner of the vertical construction at the site, has agreed to perform this work on the City’s behalf.
Based on the City’s need to spend additional Housing Successor Fund dollars in FY 2025-26, staff recommends City Council approve a one-time budget appropriation and expenditure from the Housing Successor Fund in the amount of $250,000 to cover the anticipated operating gap and capital improvements. Staff recommends authorization for the City Manager to execute agreements with Hope The Mission and Many Mansions not to exceed $250,000 with the specific dollar amount for each depending on actual costs, as drafted by the City Attorney’s Office. Levine Act Disclosure Form provided in Attachment #1 LEVINE ACT (California Government Code § 84308):
This item is subject to the Levine Act. City Councilmembers who have received a campaign contribution of more than $500 (aggregated) within the preceding 12 months from a party or their agent/representative, or a financially-interested participant involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; or if applicable (2) return the portion of the contribution that exceeds $500 within 30 days from the time the official knew or should have known about the contribution, and participate in the proceeding.
All parties and their agents/representatives must disclose on the record of this proceeding any aggregated contribution of more than $500 made to any Councilmember within the preceding 12 months. Councilmembers are prohibited from accepting, soliciting, or directing a campaign contribution of more than $500 (aggregated) from a party, their agent/representative, or a financially-interested participant during a proceeding and for 12 months following the date a final decision is made. In addition, a party, their agent/representative, or a financially- interested participant is prohibited from contributing more than $500 (aggregated) to a Councilmember during a proceeding and for 12 months following the date a final decision is made.
Navigation Center Housing Successor Fund Allocation
June 23, 2026
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COUNCIL GOAL COMPLIANCE:
Meets the following City Council goals:
A. Create a more equitable, accessible, safe, welcoming, and inclusive government and community regardless of race, color, ethnicity, religion, sex, physical or mental ability, sexual orientation, gender identity and expression, age, language, education, and/or socio-economic status.
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
J. Implement high quality revitalization projects within Thousand Oaks Boulevard and Newbury Road Areas; develop a pedestrian-oriented, viable, and self- sustaining "Downtown;” and, continue to support production of long-term affordable housing.
PREPARED BY: Lynn Oshita, Senior Analyst
Attachments:
Attachment #1 – Levine Act Disclosure Form
CDD: 685-10\lo\H:\COMMON\Housing & Redevelopment\Developers & Developments\Emergency Shelter - Navigation Center\Council\2026-06-23 – F165\Staff Report.docx