Modesto low-barrier homeless shelter can stay open through June, county report says
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- County secures funding to operate Modesto low-barrier shelter through June 30, 2025.
- Patchwork of 20+ funding sources covers ACES but state HHAP cuts threaten stability.
- County must meet state results criteria to access long-term funds for shelter.
Stanislaus County officials believe there are funding sources to operate the low-barrier homeless shelter in Modesto through June 30 and are working on a sustainable funding plan for future years.
In October, the county issued a six-month notice to terminate a facilities lease agreement with The Salvation Army for the 182-bed shelter on South Ninth Street because of anticipated funding shortfalls.
A patchwork of more than 20 funding sources has supported the shelter at D and South Ninth streets since its inception in 2019. But a funding gap appeared when the state didn’t include Homeless Housing Assistance and Prevention (HHAP) funds in its 2025-26 budget.
A report on funding for the low-barrier shelter is going to the county Board of Supervisors on Tuesday. It says program changes are inevitable “to ensure a sustainable operations model for ACES,” which stands for Access Center Emergency Shelter.
The shelter has relied on annual rounds of HHAP funding from the state since 2021, but the HHAP funding was not included in the current California budget. To make matters more precarious, the state has said allocations for 2026-27 will be cut in half. State legislation created results-based criteria for counties to receive funding in the future, according to the report by Christine Huber, county Community Services Agency director.
The state wants counties to reduce homelessness, ensuring that people are accessing services and getting into permanent housing, among other goals. County and Modesto city officials have been meeting for four months to explore other funding sources for the $3.3 million in annual costs of ACES.
The report identifies $1.84 million in previous HHAP allocations and $1.25 million in Permanent Local Housing Allocation funds for ACES. An additional $88,100 in caseworker funding should be available but has not been approved yet.
The county would need to show it’s meeting state criteria to receive some of the funding. Another update from the county’s Community Services Agency is expected in April, as local agencies continue discussions on funding ACES in future years.
The county’s General Services Agency sent a letter to The Salvation Army last week extending the lease agreement through June 30. “Since September, the county has continued to work to identify funding and now has confidence in receiving funding to support the (agreement) through the end of the fiscal year,” the county letter said.
Through June 2025, the low-barrier shelter has housed 2,762 people since opening in 2019. Some are long-term users of the shelter, while others have stayed there repeatedly over the years.
The Salvation Army is responsible for providing people staying in the shelter with showers, restrooms, housing for their pets, meals, storage for personal items, hygiene and laundry facilities.
Case managers, or resource specialists, work to connect the residents to services including temporary or permanent housing providers, employment services, health care providers, drug and alcohol rehab, disability services, public benefits and other support.
The Stanislaus County Board of Supervisors meets at 9 a.m. Tuesday in the basement chamber of Tenth Street Place, at 1010 10th St., Modesto.
This story was originally published January 26, 2026 at 4:30 PM with the headline "Modesto low-barrier homeless shelter can stay open through June, county report says."
