Irvine approves $18.5 million budget for first homeless shelter 

 Irvine City Council approved an $18.5 million budget for the purchase of two buildings to be used as the city’s first homeless shelter on Oct. 22. 

The property, located at 17572 and 17622 Armstrong Ave. in the Irvine Business Complex, will serve as bridge housing with case managers, support programs and resources to access permanent affordable housing, according to the staff report. This marks the first step in a project titled “The System,” which aims to stabilize at-risk and unhoused individuals through interconnected programs and transitional housing. 

“The bridge housing option that we’ve contemplated would not be operated … like a traditional shelter,” City Manager Oliver C. Chi said during the Oct. 22 council meeting. Instead, it will involve “an overarching campus that includes case management and medical care, not just a place that folks go to provide and find shelter.”

The purchase of this property required the city to put down a non-refundable deposit of $1 million by Oct. 24, with a 30-day closing period ending Nov. 5. The overall budget for the item is $20 million, which includes $1.5 million for varying insurance, fees and services. 

The city council, however, raised some concerns about potential costs. 

“This is ambitious; this is forward-thinking,” Councilmember Tammy Kim said, noting that the project “could suck a city dry.”

Councilmember Mike Carroll raised concerns about the project, stating that it “isn’t fully fleshed out.” He added that the purchase is extremely rushed and hasn’t been reviewed by various commissions. 

City Manager Chi responded to Kim’s comment regarding financial concerns.

“Through the CalAIM program there are services now that are reimbursable,” Chi said. 

CalAIM, led by the California Department of Health Care Services, is a medical program which will redirect medical funds into preventative services. Grant funds, housing funds, the Irvine Recovery Fund and the Irvine Business Complex Fund are also expected to supplement the program, according to the staff report. 

The item passed 4-1, with Councilmember Mike Carroll casting the opposing vote. 

The property itself is known as “The Sanctuary,” a name coined by city council staff. 

Supervisor Vicente Sarmiento, chairman of the Commission to End Homelessness, wrote a letter of support for the item. To members of the City Council, he stated, “the creation of the Sanctuary represents a significant step forward in addressing the challenges faced by individuals and families who find themselves without stable housing.” 

At the council meeting, Vice Mayor Larry Agran suggested the possibility of collaborating with UC Irvine to offset costs. He suggested UCI be involved with the agenda item as transitional housing can be available on campus during the summer. Councilmember Kathleen Treseder responded that UCI housing is full, with students on waitlists, and that it would not “be a great source of temporary housing but, yeah, it’s worth asking.” 

The city is expected to close the deal for the site next month. 

Noosha Taghdiri is a News Intern for the fall 2024 quarter. She can be reached at taghdirn@uci.edu.

Edited by Jaheem Conley

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