Los Banos awarded nearly $12 million from California to build housing project for homeless
Los Banos city officials feel an $11.8 million grant from the state to help provide permanent housing for homeless people could be a game-changer.
How big?
“This could essentially solve our homeless issue,” said Stacy Souza Elms, who is the city’s Community & Economic Development director.
The funding from the state is to help transition people living in encampments into permanent housing.
The money comes when the city has seen an increase in homeless.
Just across the street, a couple hundred feet away from where city officials held a press conference to discuss the grant on Monday, there is a homeless encampment along G Street with about 20 tents set up between the police station the Los Banos Community Center.
As of January of this year there were 121 unsheltered people in Los Banos, according to the Merced City and County Continuum of Care. That’s up from 78 unsheltered people in 2023.
City officials believe the $11.8 million could put a serious dent in the homeless issue in Los Banos.
“Looking at 121 numbers in our point in time count, this is a good shot in the arm for Los Banos,” Souza Elms said. “We’re a community, I mean we’re not a San Francisco, we’re not a San José, a Los Angeles; this money, you will be able to see change... you won’t see encampments. You will see folks housed and getting services that they need.”
Statewide issue
Gov. Gavin Newsom announced on Friday that the state was spending nearly $200 million in new state funds to help move people out of encampments and into housing.
“This new funding will get people out of tents and into housing across California,” said Newsom, during the press conference. “As the state provides unprecedented resources like this, we also expect accountability. Local governments must ensure this funding is being utilized on the ground.”
Los Banos Mayor Paul Llanez says the $11.8 million will be used to build 50 modular units that will provide permanent housing to 95 people.
The aim of the project is to help transition individuals out of homelessness.
“We’re going to have a dedicated location to keep people out of encampments and into permanent housing so that’s something that is huge for us,” said Llanez, during Monday’s press conference.
City of 41,000 got more than Fresno, Oakland
Los Banos was one of nine cities in California awarded money through the Encampment Resolution Funding Grant Program on Friday. Funding was also awarded to different counties in the state.
The $11,842,621 Los Banos — a city with a population close to 41,000 people — received was more than larger cities like Fresno ($10.9 million) and Oakland ($7.2 million) were awarded.
“We’re the little guy in a big pond,” said Souza Elms.
Llanez said one of the first things he did when he was elected mayor in 2022 was hire two full-time employees dedicated to homeless resources. Los Banos Housing Program manager Christy McCammond and homeless outreach coordinator Jennifer Loa did much of the heavy lifting in securing the grant money, according to Llanez.
“Because of our staff, our staff who put in the countless hours nights, weekends to articulate the need and this grant is where we are and the amount of money we received,” Llanez said.
The city has been able to house 11 people since March 1 of 2023. Llanez says the city hasn’t had the resources to address the homeless issue.
“From the city level we’ve been playing catch up for a long time, so this is something that is going to get us over that hurdle,” Llanez said. “A big focus for me is providing resources to those who need it and to those who want it and that’s exactly what this is going to do.”
“We didn’t have the resources,” Llanez added. “The numbers were getting higher and we had people looking for needs. We had bridge homes and things like that, we’re talking eight beds. When that’s what you’re offering, it just doesn’t fit the need.”
Llanez says the goal is to do more than put a roof over someone’s head. They will have support staff on site.
“The goal is going to be to have resources there, drug treatment, mental health, this is going to be an inclusive thing that we’re doing,” Llanez said.
Llanez says the city will receive the funds from the grant in July and the grant period is until June of 2027.
“We’re going to have people in permanent housing, supportive housing, our goal is October of 2025 that we will achieve this,” he said.
