Title
Support a recommendation to the Board of Supervisors to authorize and direct the Auditor-Controller to amend the Fiscal Year 2026-27 Adopted Budget for the County Administrative Office to increase expenditure appropriations by $102,868 in 1001-105008-61000 (General Fund-Homelessness Strategies and Initiatives-Services and Supplies), supported by reimbursement of eligible SHARE Center expenditures from Permanent Local Housing Allocation (PLHA) Activity 6 funds administered by the County Housing and Community Development Department (4/5ths vote required by the Board of Supervisors).
Report
RECOMMENDATION:
It is recommended that the Budget Committee:
Support a recommendation to the Board of Supervisors to authorize and direct the Auditor-Controller to amend the Fiscal Year 2026-27 Adopted Budget for the County Administrative Office to increase expenditure appropriations by $102,868 in 1001-105008-61000 (General Fund-Homelessness Strategies and Initiatives-Services and Supplies), supported by reimbursement of eligible SHARE Center expenditures from Permanent Local Housing Allocation (PLHA) Activity 6 funds administered by the County Housing and Community Development Department (4/5ths vote required by the Board of Supervisors).
SUMMARY:
The County Administrative Office’s Homelessness Strategies and Initiatives Division (CAO-HSI) requests Budget Committee support for an increase of $102,868 in expenditure appropriations in its Fiscal Year (FY) 2026-27 Adopted Budget. The expenditures will be supported by reimbursement from Permanent Local Housing Allocation (PLHA) Activity 6 funding administered by the County of Monterey Housing and Community Development Department (County HCD). Under an executed Interdepartmental Memorandum (IDM), effective July 1, 2026, through December 31, 2028, County HCD will reimburse eligible SHARE Center operating expenditures included in Amendment No. 1 to Agreement A-17865 with Community Human Services (CHS). Following review and approval of CAO-HSI invoices, County HCD will process a journal voucher (JV) to reimburse the CAO-HSI expenditure account. No additional County General Fund contribution is requested.
DISCUSSION:
County HCD administers the County’s Permanent Local Housing Allocation (PLHA) grant from the State of California Department of Housing and Community Development. PLHA Activity 6 supports services for persons experiencing or at risk of homelessness, including operating costs for navigation centers such as the SHARE Center. County HCD previously coordinated these funds through the Department of Social Services; with SHARE Center administration now under CAO-HSI, County HCD is partnering directly with the County Administrative Office.
Under the executed Interdepartmental Memorandum (IDM), effective July 1, 2026, through December 31, 2028, County HCD will make the remaining PLHA Activity 6 balance of $102,868 available to reimburse eligible SHARE Center expenditures. After County HCD reviews and approves CAO-HSI invoices, County HCD will process a journal voucher (JV) to reimburse the CAO-HSI expenditure account. County HCD remains responsible for PLHA compliance and reporting to the State, and CAO-HSI will monitor service delivery and provide program reporting as required by County HCD.
These funds are included in Amendment No. 1 to Agreement A-17865 with Community Human Services, the SHARE Center operator, for FY 2026-2027. Because the IDM was executed after the budget was adopted, the CAO-HSI FY 2026-2027 Adopted Budget does not include these funds. The recommended increase in appropriations allows CAO-HSI to pay the PLHA-funded portion of SHARE Center operating costs and will be presented to the Board of Supervisors with Amendment No. 1; the budget action requires a 4/5ths vote.
OTHER AGENCY INVOLVEMENT/COMMITTEE ACTIONS:
County HCD is the administering department for the County’s PLHA grant and is providing $102,868 in PLHA Activity 6 funds through the executed IDM. The Office of the County Counsel approved the IDM as to form, and the Auditor-Controller’s Office reviewed the IDM as to fiscal provisions. Upon the Budget Committee’s support, this item will be presented to the Board of Supervisors with Amendment No. 1 to Agreement A-17865. The County will also bring Amendment No. 1 to the SHARE Center MOU with the City of Salinas to the Board of Supervisors, at which time appropriations for the City’s FY 2026-2027 contribution will be requested.
FINANCING:
The recommended $102,868 increase in expenditure appropriations in 1001-105008-61000 (General Fund-Homelessness Strategies and Initiatives-Services and Supplies) will not require an additional County General Fund contribution. Eligible SHARE Center expenditures will be reimbursed directly to the CAO-HSI expenditure account by County HCD through a journal voucher following approval of CAO-HSI invoices. The PLHA Activity 6 funding is administered in County HCD Fund 1271, Unit 310011. County HCD records State grant receipts in revenue Account 44285 (Other State Aid) and will charge its expenditure Account 62565 (Other Professional and Special Services) when processing the reimbursement JV. These HCD account references identify the source and payment of reimbursement, not a transfer of State Aid revenue into CAO-HSI's budget.
The FY 2026-27 SHARE Center operating cost of $3,200,000 under Agreement A-17865, as amended, is funded as follows: $1,600,000 from the City of Salinas, $1,405,658 in Homeless Housing, Assistance and Prevention (HHAP) Round 6 funds, $91,474 in HHAP Round 5 Rapid Rehousing funds through the Department of Social Services, and $102,868 in PLHA funds through County HCD. Sufficient appropriations for the HHAP Round 5 and HHAP Round 6 funds are included in the CAO FY 2026-27 Adopted Budget, and this budget amendment provides the appropriations for the PLHA portion.
Appropriations for the City of Salinas’ $1,600,000 contribution will be requested when Amendment No. 1 to the SHARE Center MOU with the City of Salinas, included as an attachment to this report, is brought to the Board of Supervisors.
Link to the Strategic Plan:
<https://www.countyofmonterey.gov/home/showdocument?id=139569>
Prepared by: Sarah Federico, Management Analyst III, CAO-HSI Division, ext. 5341
Reviewed by: Roxanne Wilson, Homeless Services Director, CAO-HSI Division, ext. 5445
Approved by: Michael Beaton, Assistant County Administrative Officer, ext. 3835
Attachments:
Interdepartmental MOU with County HCD_CAO-HSI
Draft CHS Amendment No. 1 to A-17865
Executed CHS Agreement A-17865
Draft MOU Amendment No. 1 with City of Salinas
Draft PLHA Resolution