ENCINITAS — With federal funding dwindling and calls for accountability growing, the Encinitas City Council on Wednesday debated how to distribute critical housing and community development grants while balancing local concerns over public safety.
The discussion centered on the draft Fiscal Year 2025-2029 Consolidated Plan, which outlines how the city will allocate Community Development Block Grant (CDBG) funds — federal dollars to assist low-income residents, improve infrastructure, and prevent blight.
The city has received CDBG funding from the U.S. Department of Housing and Urban Development (HUD) since 1990. For fiscal year 2025-26, the city anticipates receiving approximately $273,884, though final figures have not yet been announced.
The Consolidated Plan is a required five-year document that guides how CDBG funds are spent. These federal dollars must be used for projects that benefit low- to moderate-income individuals, address urgent needs, or prevent and eliminate blight.
The proposed funding for the FY 2025-26 Annual Action Plan includes:
- Public services (capped at 15%): $41,000 allocated among the Community Resource Center (CRC), Meals on Wheels, and the Boys & Girls Club.
- Planning and administration (capped at 20%): $55,000, which includes Fair Housing Services.
- Other uses (no funding cap): $178,000 for the Residential Rehabilitation Program, which assists low- to moderate-income homeowners with property improvements.
From October to December 2024, a public engagement process included surveys and meetings, identifying infrastructure improvements (70%), homeless services (40%), and housing services as the community’s top priorities.
During public comment, John Van Cleef, CEO of the Community Resource Center, said he supported the funding plan and requested an additional $14,040 from the city’s general fund to meet the three organizations’ requests fully.
“I’m here to support (the) staff proposal on the funding for the organizations involved,” Van Cleef said, adding that CRC has seen a 12% increase in food service demand in the past year.
However, some residents voiced concerns about public safety issues near CRC’s Second Street location, including reports of public urination and vandalism.
Martin Tracy, who owns property near the CRC, objected to continued funding, stating, “I live with it every single day — urination, people trashing my place. I had vandalism on my gate last week.”
Council members considered declining federal funding, noting that Encinitas received $356,000 in 2020 compared to the projected $273,000 for 2025. Mayor Bruce Ehlers expressed concerns about future allocations.
“This (funding) is an estimate of what we might get,” Ehlers said. “It could be zero, in which case we need to be careful.”
A key topic was whether to implement performance metrics in funding agreements with grant recipients. Councilmember Jim O’Hara called for adding memorandums of understanding (MOUs) with clear accountability measures.
“Simply achieving your goals is not enough,” O’Hara said. “If we serve 415 families, that helps. If we impact 415 neighbors in a negative way, it offsets that help.”
Councilmember Marco San Antonio, who owns a business downtown, echoed concerns about homelessness-related activity.
“I have a duty to those people that come to me and ask me about the homeless situation that seems to keep growing,” San Antonio said.
However, Deputy Mayor Joy Lyndes urged the council to recognize CRC’s role in providing homeless services.
“I caution us not to choose to blame the provider for the problem,” she said. “I think that CRC is part of the solution.”
The council unanimously approved a motion to continue the public hearing to April 16, allowing more time for public input before a final vote. The decision also included completely funding grant recipients with a $14,000 general fund subsidy and directing staff to draft performance-based MOUs to ensure accountability.
City officials will submit the final plan to HUD by May 15. The draft Consolidated Plan and Annual Action Plan will be available for public review from March 13 through April 12 at City Hall, the community center, and local libraries.
