ENCINITAS — The Encinitas City Council allocated thousands of dollars in anticipated federal funds to three community organizations on Wednesday, continuing a discussion from last month prompted by concerns about public safety issues related to one of the proposed recipients.
In a 4-0 vote with Deputy Mayor Joy Lyndes absent, the council agreed to allocate $41,000 in Community Development Block Grant funds and $14,000 in General Fund subsidy dollars between three organizations — $30,000 for the Community Resource Center, $10,000 for Meals-On-Wheels, and $15,000 for the Boys & Girls Club.
The council originally discussed the allocations in March, but decided to delay a decision after some residents raised concerns about alleged illegal behavior from individuals in the vicinity of the Community Resource Center (CRC).
The center’s offices on Second Street provide social services to around 7,000 individuals annually in coastal North County, including food services, domestic violence programs, housing assistance and counseling. The CDBG funding will support their food pantry and distribution programs, which support 415 low-income families in the community.
Following the March meeting, city staff proposed a memorandum of understanding with performance standards for each CDBG funding recipient. These proposed standards required CRC to clear all litter from the street by the end of each day and to relocate the queue for clients seeking services from the street into the building’s indoor breezeway.

However, after much discussion and back-and-forth with CRC leaders and multiple public comments, the council agreed to forgo these requirements and approve the funding.
“You were looking for compassionate and productive dialogue; you know I am too, and I don’t know the answer yet today, but I would like to get there. I think what’s in front of me tonight is not right,” said Mayor Bruce Ehlers.
The council chambers were filled with people supporting CRC, many of whom held signs featuring the organization’s logo. Several of them encouraged compassion rather than fearmongering about homeless people in Encinitas.
“There is not one business or organization that has brought homelessness to our city … this is a problem across our nation that is fueled by the opioid epidemic, rising cost of living and mental health issues,” said Lisa Nava, president of North County Justice Allies.
Others noted that CRC’s programs prevent more people from entering homelessness. The nutrition program provides free food, allowing families to allocate their limited income to other necessities, such as rent and medical bills.
“The people who rely on the CRC food pantry are not strangers. They are our students,” said Lupita Barnett, a community liaison in the Encinitas Union School District. “They are kids who smile at dropoff and try to focus on math even when they went to bed hungry.”

A couple of residents, however, stated that the neighborhood is negatively affected by some of the individuals at the CRC. Natalie Settoon claimed there is “overwhelming criminal behavior in the immediate proximity” of the center, and resident David Dean said he has seen individuals urinating on the street.
“It’s not fair for the local residents and neighbors to experience what they’re experiencing on a regular basis,” Dean said.
Council members said that while they all support the CRC’s invaluable services in the community, they are concerned about the reports of illegal behavior.
“We will get these 415 families food. We’re all dedicated to that … but I also have a responsibility to my residents and my businesses, and we need more than we’re getting from you, is what we’re told,” Councilmember Jim O’Hara told CRC.
John Van Cleef, CEO of the CRC, stated that there is an assumption that homeless individuals causing a public nuisance are all connected to the CRC, when in fact, that is not the case. Many of these concerns, he said, need to be addressed as part of a larger conversation about homelessness locally.
“I think we’re having two conversations here — one conversation is a citywide strategic plan to address homelessness in the city of Encinitas, and the other is CDBG funding to support the food and nutrition program. In both places, I do want to affirm our commitment to partner in those areas,” Van Cleef said.
He assured the council that CRC has a protocol for dealing with individuals who violate their code of conduct, which can range from asking them to leave for the day to permanently suspending them from CRC programs, even calling the Sheriff’s Office if necessary.
“There are things we do have in place to address those behaviors,” Van Cleef said.
Capt. Shane Watts of the North Coastal Sheriff’s Station stated earlier in the meeting that between January and March, the city’s COPPS and HOPE teams had 235 contacts with unhoused individuals during their street outreach.

Watts said the team offers a variety of resources, which many people accept. The number of unhoused individuals who decline resources and cause issues in the community is very low — around 15 or fewer — and many of these individuals appear to be struggling with addiction.
“Most of the time we’re dealing with addictions, and addictions are horrible, and it becomes a cycle. If we can just break them out of that addiction, they’re so much better, and they can come back into society and not be repeat offenders and move on with their lives,” Watts said.
The CDBG funds were part of a larger discussion regarding the Consolidated Plan, which guides how these funds are spent. These federal dollars must be used for projects that benefit low- to moderate-income individuals, address urgent needs, or prevent or eliminate blight.
Encinitas anticipates receiving approximately $273,884 in CDBG funds in the 2025-26 fiscal year, although final figures have not yet been announced. The City Council added the General Fund subsidy to make up the gap.
In the coming years, CRC plans to upgrade its campus to better meet clients’ needs and provide a more dignified environment. The project was initially projected to cost $10.5 million, but is now expected to cost closer to $14.1 million due to inflation of construction costs.
As of February, CRC has raised over $11 million for the project entirely through donations from individuals and private foundations via their One Community, One Heart campaign.
The renovation will remodel the interior and exterior, construct a new food and nutrition center on the adjacent property (currently housing a small multifamily apartment complex) to address food storage issues, provide more space for clients to wait inside, and create more privacy for clients.