County Supervisors approved releasing more than $3 million from two key homeless assistance programs.
County Social Services Department Principal Administrative Manager, George Solis’ report asked Supervisors to release the “Round 5” funding of the State Department of Housing and Community Development’s “Homeless Housing, Assistance and Prevention (HHAP) Program,” some $1.73 million that was recommended by the County Homeless Services Oversight Council (HSOC).
Solis also asked for the release of the Round 6 funding in the State’s “Homeless Housing, Assistance and Prevention Program,” for another $1.27 million. All together the two disbursements total just over $3 million.
Solis explained that the HHAP Program comes through a Housing and Community Development division, called the “Business, Consumer Services and Housing Agency.”
The money goes to large cities of over 300,000 population and to counties with “Continuums of Care” agencies in the form of block grants, “to build on the regional coordination created through previous HCD grant funding and support local jurisdictions to prevent and expeditiously reduce unsheltered homelessness.”
It’s a somewhat complex web of bureaucracy to get the money actually dispersed out into the community.
Under the HHAP Program, Solis said, SLO County and the Continuum of Care were eligible for more than $7 million from Rounds 5 and 6 combined.
In October 2024 the HHAP Round 5 money, the County and the Continuum received some $4.31 million. HHAP-6 for $2.77M came last January.
“These rounds of funds,” Solis said, “are disbursed in two phases each, with the second disbursement contingent on meeting specific expenditure and obligation benchmarks.”
In August 2025, the HSOC approved awarding $1.98M (from HHAP-5) and County Supervisors gave final approval in December 2025.
HHAP-6 funding priorities were approved by HSOC in March (2026) when the Round 5 second allocation went out. HSOC also put out a request for proposals for the funding. HSOC set up several priorities for the available funding:
• 31 percent for delivery of permanent housing and innovative housing solutions;
• 21% for operating costs/supportive services in existing interim shelters;
• 21% for operating costs/supportive services in permanent supportive housing units;
• 10% for prevention and shelter diversion; and
• 9% for rapid rehousing/rental subsidies.
Solis added, “Under State guidelines, at least 10% of the total funds must be spent on homeless youth and no more than 7% of the total funds may be used by the County to administer the HHAP-5 program.”
HSOC also set priorities for the Round-6 funding:
• 61% for interim housing services and services coordination;
• 15% for rapid rehousing/rental subsidies;
• 8% for permanent housing services and services coordination; and,
• 7% for capital for permanent housing.
The State has the same requirements as the previous funding round, 10% to homeless youth and no more than 7% for administration. The request for proposals got a dozen applications totaling more than $10.2 million, and the County put together “Grant Review Committees” or GRCs to review and score the applications using criteria developed by HSOC.
The Council approved the list last February and Supervisors gave their approval last April. Getting approval was of course complicated.
“Applications were evaluated,” Solis said, “using standardized scoring criteria based on the project type. For service-related projects, application scores were combined with performance measures derived from the County’s Homeless Management Information System (HMIS) or other HMIS-compliant databases.
“Because project objectives differ across eligible activities, separate performance metrics were used for each project type.”
He said their method of review made sure everything was done fairly. “This approach ensured that funding recommendations considered both application quality and demonstrated program outcomes,” he said.
The awards were broken down into five categories: delivery of permanent housing and innovative housing solutions (capital costs); operating costs/supportive services in existing interim shelters; operating costs/supportive services in permanent supportive housing units; youth set-asides; and, prevention and shelter diversion.
Three projects got funding under the “Capital Costs” heading — The SLO Nonprofit Housing Corp., for $183,000; People’s Self-Help Housing for $269,000; and, Transitions Mental Health association for $248,000.
One applicant, NanoNest, was denied funding to buy eight housing units because it had “no project location or service provider attached to it,” the report said.
Under the “Operating Costs/Support Services” three awards went to: the Five Cities Homeless Coalition (5CHC) for $512,000; CAPSLO for $395,000; and ECHO (El Camino Homeless Organization) for $277,000. These funding amounts, which were awarded at levels far below what the agencies asked for, totaled $1.18M.
Another applicant, Lumina Alliance wasn’t funded because its request was for help to renovate an existing shelter, which the review committee and HSOC didn’t feel was a priority, but Solis said they will try to find their project some other funding.
“Staff will direct the applicant to alternative funding opportunities for public facilities in the upcoming 2027 Action Plan NOFA,” the report said.
Three awards were made under the “Permanent Supportive Housing” category: People’s Self-Help Housing for $262,000; Transitions for $109,000; and the Housing Authority of SLO (HASLO) for $71,000. These grants totaled $442,000 and no one was denied.
Rapid Rehousing and Rental Subsidies saw three awards given out: 5CHC got $162,000; ECHO got $87,000; and CAPSLO was awarded $73,000 for a total of $322,000.
Transitions was denied $75,000 for its Housing NOW program and continuing assistance.
Under the “Youth Set-Asides,” 5CHC got $354,000 for its “countywide youth focused” program, according to the report.
Solis said this money was awarded because of “5CHC’s strong performance in serving youth experiencing or at risk of homelessness. Additionally, 5CHC has proposed to continue to provide services countywide. Youth set-aside funding will support interim shelter operations, rapid rehousing, prevention, and permanent supportive housing services.”
ECHO had also put in a request for funding but was denied.
These funding recommendations align with the priorities established by the HSOC and the Board.
Solis said the grant awards and the programs they would support align with the County’s plans to end homelessness.
“These recommendations,” the report said, “support the implementation of the San Luis Obispo Countywide Plan to Address Homelessness, specifically:
1. Line of Effort 1: Create affordable and appropriately designed housing opportunities and shelter options for underserved populations.
2. Line of Effort 2: Focus efforts to reduce or eliminate barriers to housing stability for those experiencing or at risk of homelessness, including prevention, diversion, supportive services, and housing navigation.”
