Stanislaus sends six-month termination notice for the low-barrier shelter in Modesto
It can’t be good news for anyone encouraged by tiny home projects or other recent developments to assist the homeless.
Stanislaus County has sent a six-month notice to end an agreement with The Salvation Army for operation of the low-barrier homeless shelter on D Street in Modesto. Closing the facility would remove 182 shelter beds for people who don’t have a home.
County leaders are groping for options after Homeless, Housing and Prevention funds were not included in the 2025-26 state budget. The funding source has accounted for a substantial percentage of annual support for the shelter, which is also known as the Access Center Emergency Shelter or ACES.
The state is expected to include $500 million in HHAP funding for counties and cities in the 2026-27 budget, which is half of that provided in previous years.
Andy Johnson, the county’s general services agency director, sent the termination notice Thursday to Salvation Army Maj. Darren Stratton. County officials with the Chief Executive’s Office and the Community Services Agency declined interviews regarding the dire funding situation throughout last week.
Johnson wrote that a new model for ACES “is likely inevitable” and operational changes should be explored.
The potential reduction in beds or closure of the shelter comes as counties and metrolitan areas in California have reported progress in reducing their homeless populations. Neighboring Merced County recorded a 15% decrease during its point-in-time count this year, while the number of homeless dropped 20% or more in Santa Cruz, Sonoma and Contra Costa counties, according to data compiled by Hub for Urban Initiatives.
The Stanislaus homeless count rose 1.6% from 2,052 in 2024 to 2,086 this year. The count in January identified 950 homeless people not using shelters and 1,136 in shelters.
From 2019 to this past June, the ACES facility provided shelter and services for 2,762 people, including 512 in the 2024-25 fiscal year. A county report released Friday says many of them deal with physical conditions and mental health issues, as well as effects of domestic violence, sexual assault or human trafficking.
The county had a plan to use $2.3 million in HHAP money to cover 70% of operating expenses this year at the ACES facility. The county still expects to receive more than $1 million in January through a previous HHAP disbursement but doesn’t know if it can show progress with performance measures to obtain an additional $1.23 million.
Even before the state funding was in jeopardy, ACES was facing a $350,700 shortfall, a county staff report indicates.
The state has issued the HHAP funding in rounds since 2021 but legislation changed how the money is distributed to counties and established criteria counties need to meet. To receive the additional $1.23 million, Stanislaus needs to meet two or three metrics related to the number of people who are sheltered during the annual point-in-time count, the number accessing services, the number moving into permanent housing or the average time people are homeless while accessing services, the county report says.
The shelter operations are one of the items as the county Board of Supervisors is poised to approve a final budget for the year that runs through June 30, 2026.
County could approve final budget
Tuesday, county supervisors could approve a $1.89 billion final budget. The spending plan is funded through $1.68 billion in estimated revenue and $208.3 million in fund balance and retained earnings.
The county will work with a $538.7 million general fund for daily operations, fueled by $492.8 million in revenue and $46.1 million in fund balances.
The final budget includes updates since the preliminary budget was approved in June, as the county makes adjustments for state budget developments, federal actions and other emerging issues. The county is treading more lightly with the new budget that runs through June 30, 2026.
The Board of Supervisors will hold a budget hearing Tuesday morning to accept comments from the public. Comments regarding the budget may be submitted by email through COBsupport@stancounty.com.
The board will meet at 9 a.m. Tuesday on the bottom floor of Tenth Street Place, 1010 10th St. in Modesto.
This story was originally published September 28, 2025 at 11:36 AM.
