OCEANSIDE — After nearly four months addressing one of the state Route 78 corridor’s largest homeless encampments, Oceanside is continuing efforts to move people into housing in partnership with Carlsbad and Interfaith Community Services.
On Sept. 17, the City Council approved a $2.3 million state grant-funded contract with Interfaith to continue outreach, case management, stabilization, and rapid rehousing services for unsheltered residents.
Last year, Oceanside and Carlsbad received $11.4 million in Encampment Resolution Fund resources from the California Interagency Council on Homelessness to address encampments along a 3.6-mile stretch of the SR-78 corridor, beginning near the Buena Vista Lagoon and extending along the cities’ border.
Staff estimated roughly 200 homeless people were living in the area.
The program divides the corridor into eight subzones. Zone 1 — behind the Hobby Lobby off Plaza Drive and College Boulevard, and along Lake Boulevard near the Salvation Army — was considered the most densely populated and generated the most service calls.
The city contracted with four providers: Escondido-based Interfaith and Whole Person Care Clinic, Encinitas-based Community Resource Center, and La Posada, a men’s homeless shelter in Carlsbad.
Grassroots groups also stepped in, including Humanity Showers, Convicted 4 Christ, TrueCare and Vista Community Clinic.
From April through August, 76 people received outreach, stabilization and housing navigation services, and 54 individuals transitioned into permanent housing, where they remain.
By mid-July, Zone 1 was cleared and closed, with 30 tons of debris, including 24 tents, removed from sensitive ecological areas. The area remains clear, and Oceanside police and staff continue to monitor it.
The program has resulted in a 17% reduction in unsheltered homelessness citywide, according to city staff.
“It goes to show that this project is successful,” said Homeless Services Manager Salvador Roman, noting the Regional Task Force on Homelessness is helping create a “blueprint that could be replicated and recreated in different parts of the county.”
Mayor Esther Sanchez said during a call with the governor’s office, representatives indicated the model could be used statewide.
Council members praised the staff’s work.
“You should be proud of the work that you do,” Sanchez told staff.
Councilmember Jimmy Figueroa said his walk-alongs with Oceanside police and staff earlier this year showed strong relationships between staff and clients. He said property managers at the nearby Tri-City Crossroads shopping center also recently praised the city’s work.
“Everything I’ve heard is just really encouraging,” Figueroa said.
Not all were supportive. A public commenter, identified as Patti, criticized Interfaith and questioned the city’s decision to continue contracting with the nonprofit, noting that Oceanside had also hired Interfaith to run its Navigation Center.
She claimed Escondido withheld funding from Interfaith earlier this year due to issues around its headquarters and accused the nonprofit of profiting from Oceanside’s grants.
While Escondido did not award Interfaith any Community Development Block Grant funding this year, city staff had previously stated that priority was given to new or expanded programs over long-supported groups, such as Interfaith. Officials noted that the decision was not related to operational issues.
Escondido required Interfaith to raise standards earlier this year to address loitering and littering near its Washington Avenue campus. In a recent update, the Escondido City Council commended the nonprofit for improvements.
Oceanside Deputy Mayor Eric Joyce also stressed that Interfaith is paid for services, not profit.
“Interfaith’s not getting lottery tickets when they get awarded these things, they’re getting awarded a contract to do work,” Joyce said. “It’s expensive because it’s hard and it takes human power.”
Sofia Hughes, a management analyst in the city’s Housing and Neighborhood Services Department, said about $5.6 million of the $11.4 million grant has already been spent, largely on Carlsbad providers to meet state deadlines.
The program originally assumed that Oceanside and Carlsbad Housing Choice Vouchers would supplement rehousing efforts. But in April, the U.S. Department of Housing and Urban Development notified Oceanside that funds would be reduced, pausing new voucher issuance until at least 2026.
To address the gap, staff recommended expanding Interfaith’s rapid rehousing role, citing its experience with rental subsidies. The contract also funds dedicated stabilization case managers to help clients maintain housing and navigate landlord relationships.
The council also approved a $143,000 agreement with the Regional Task Force on Homelessness to continue strategic planning, implementation, and technical support through June 30, 2027, when the grant expires.
Work on the next subzone, within Carlsbad city limits, began in late August.
