Truckee, Tahoe Forest Commit $235,000 Each to Keep Shelter Open

Truckee's only year-round shelter survived its first big test on Oct. 13, 2026, as the Truckee Town Council and the Tahoe Forest Hospital District board each approved up to $235,000 for a second year of the Navigation Center on Deerfield Drive. Both unanimous votes come with a catch: the money depends on Nevada County winning a federal Community Development Block Grant (CDBG) to buy the building for $2.1M. Coldstream neighbors pressed hard for relocation, and officials answered with promises of mitigation rather than a move.

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• Council and hospital board each approve up to $235,000, both 5-0, for Navigation Center year 2
• Funding hinges on a $2.1M CDBG building purchase; staff said there is no backup plan
• Coldstream residents deliver a 64-signature petition urging relocation; officials offer a community impact officer and mailbox moves
• Nine-bed winter surge would lift capacity from 16 to 25, but triggers remain undefined
• Officials float multi-year step-down funding but set no dollar amounts
• Council rewrites staff's "pause" on Homeless Action Plan work to keep the town at the partnership table

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Year 2 Money Hinges on a $2.1M Building Purchase

Why it matters: The second-year ask is lower than this year's $365,000 per agency, but only if the county lands the grant. If the grant falls through, staff estimated a gap of roughly $100,000 for each funder, and no fallback was presented.

The basics: CDBG is a federal grant program that funds community projects. Here, it would let Nevada County buy the Deerfield Drive building for $2.1M. The grant requires that unhoused services stay on site for five years.

Where things stand: Staff recommended a contract with Nevada County not to exceed $235,000, plus a general fund budget adjustment. The contract would serve up to 16 sheltered people, with an optional surge to 25 beds. The hospital board's package mirrored the town's.

When councilmembers asked what happens if the grant doesn't come through, staff named three options:

• More funding from the agencies
• A scaled-down model
• More fundraising by Fellowship of Compassion

The building lease and the Volunteers of America (VOA) operating contract both expire around the end of December or January.

The case for year 2: VOA reported combined utilization of 96% since the center opened Feb. 25, 2026. That breaks down to 98% for interim beds and 94% for emergency beds. VOA also reported:

• 871 day-center service events and 4,501 meals
• 72 people in case management
• Two people moved into long-term housing, with 11 more on identified housing pathways

Police said calls near the center peaked at 33 in April, fell to four in August and rose to nine in September. Six of the September calls came from one individual. Staff acknowledged that six to eight months of data is early. Cross-agency data collection is being aligned for next year.

The winter surge: Staff proposed nine extra beds for four winter months. Beds would be available by referral only from the town, Tahoe Forest or Nevada County, not walk-in and not 24/7. Justin Jones, VOA shelter manager, said nine was chosen because current staffing supports up to 25 people. Directors asked what would trigger opening the beds, such as snowfall or temperature, and how a very heavy winter would be handled. Those details were left to VOA and the Tahoe Truckee Homeless Action Coalition (THAC). Bruce Kapsack, public defender, said nine beds may not be enough.

Decisions and stakeholder impacts: The hospital board approved its five recommendations as written, announced by Board Chair McGarry as unanimous. The roll call included yes votes from Directors Brown, Chamberlain, Wong and Darzankiewicz. The Town Council then adopted items A through G as amended (For: 5 — Zabriskie, Henderson, Klovstad, Romack, Polivy; Against: 0; Absent: 0).

"I am certainly inclined to approve the second-year funding as recommended," said Jan Zabriskie, Councilmember.

For shelter guests and VOA, the votes keep doors open through the winter. For both funders' budgets, the real exposure depends on the county's grant decision.

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Coldstream Neighbors Say Location, Not Concept, Is the Problem

Why it matters: Neighborhood buy-in is the biggest political risk to the center. Staff counted 16 written comments in support and one opposed. A 64-signature petition sought relocation.

Where things stand: Coldstream residents described aggressive behavior, illegal fires, camping on the bike trail and unease near a school bus stop. Peter James, public commenter, said the impact on his neighborhood wasn't reflected in staff's presentation.

"The root cause is that it's an inappropriate location," said James.

Lynn Seruben, public commenter, presented the petition and said neighbors' concerns are not being heard. Deanne Hartzell, public commenter, said the neighborhood doesn't object to a transition center, only to one next to homes and a school bus stop.

Councilmember Zabriskie seemed to accept that framing. "I have the sense that the opposition to the navigation center is not actually opposition to the navigation center itself," he said, describing neighbors' worry that the site acts as a magnet.

The other side: Not every neighbor wants a move. Chris Terrell, a Coldstream resident living within 200 feet of the center, said drinking at the bus stop predates it. "Let's fund its 2nd year, establish sustainable long-term funding, and get that CDBG grant," he said.

Holly Verbeck, a small business owner, empathized with Coldstream but rejected a not-in-my-backyard approach. Ben Stewart, THAC neighborhood representative, backed year 2 and urged continued focus on neighborhood success criteria. He also split from most supporters on the grant: "My second ask is to please ask the county not to accept the CDBG grant to buy this building."

The limits of enforcement: Police said they cannot act without a crime or a 5150 hold, the involuntary psychiatric hold used in California. They added that no single solution exists for repeat individuals. Staff said a new site could take years, pointing to the center's 2023-2026 path to opening.

Decisions and stakeholder impacts: Officials offered mitigation rather than relocation:

• A community impact officer
• Exploring mailbox relocation with the U.S. Postal Service
• More neighbor meetings
• A possible code change limiting dwell time at the bus stop, deferred to council work planning

Neighbors get attention but not the outcome they sought. If the county buys the building, the five-year grant requirement would lock the site in place.

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Beyond Year 2: Step-Down Talk, No Dollar Amounts

Why it matters: Earlier contributions were described as one-time money. A signal toward multi-year support changes the town's long-term financial exposure, even without numbers attached.

Where things stand: Staff laid out four options for future years:

• Step down to zero within two years
• A flat annual amount
• Make year 2 the final year
• Defer the decision

Nevada County said VOA is negotiating CalAIM billing with Partnership Health Plan. CalAIM is California's Medi-Cal reform initiative, and it could let some services be billed to health insurance. Kathy Foley, Fellowship of Compassion treasurer, pledged to raise $235,000. "Please create a line item for homeless support services," she said. Reverend Claire Novak, United for Action Coalition leader, spoke for more than 100 faith community members in urging multi-year support. Maeve Donovan said the Tahoe Truckee Community Foundation is raising money alongside Fellowship of Compassion.

Council positions: Councilmembers leaned toward a step-down but said they lacked the data to set amounts.

• "I'm open to a minimum of a 2-year step-down commitment," said David Polivy, Councilmember.
• "I'm interested in and looking at a multi-year step-down funding," said Anna Klovstad, Mayor.
• "So I'm comfortable committing to year 2 tonight and continuing through the partnership to work on a long-term and sustainable funding strategy," said Courtney Henderson, Vice Mayor.

A hospital director said costs should be benchmarked. Staff responded that the county has no comparable facility.

The "pause" fight: Staff asked to pause Homeless Action Plan work, citing limited capacity and a lack of fundraising expertise. Staff proposed convening THAC in February, June and December 2027, with extra meetings allowed. Councilmember Zabriskie objected that the plan calls for a new partnership structure and that the town should help shape it. He moved to strike the pause language.

The final wording directs staff to focus on supporting the Navigation Center, local businesses and the Coldstream neighborhood. The hospital board kept its recommendation as written.

Nevada County's position: Hardy Bullock, Nevada County Supervisor, District 5, pushed for more frequent THAC meetings and offered the county as a partner. "My ask is stick with the solution, find modest sustainable funding for next year," he said.

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Inside the ER: The Hospital's Stake

Why it matters: Hospital board members framed the center as cost avoidance and as part of the hospital's mission. They acknowledged the savings are hard to quantify.

Where things stand: Katie Lamb, Tahoe Forest emergency department manager, described an ER with three nurses, one physician and room for eight patients. Before the center opened, staff faced a choice between keeping unhoused patients in beds or discharging them at night.

"We can't solve homelessness in the emergency department, and we can't solve it by sending people into a snowstorm, but we can choose to give them somewhere to go," said Lamb.

Care coordination staff Hillary Bayless and Cheryl Schultz said guests are connecting with outpatient providers and medication. Tahoe Forest reported 28 unhoused patients admitted in 2025 and 29 in 2026, with logged discharge hours down 28%. Kapsack, the public defender, made a parallel argument from the justice system: "So when you want to talk about money, the navigation center saves us money."

What's next: Directors asked for cost-avoidance data, including security and transport costs. Staff said that data has never been collected and that cross-agency tracking is being built.

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Minor Items

• Craig Schaefer, a school board candidate, introduced himself during general public comment.
• Supervisor Bullock delivered a card from shelter residents to the two boards.
• Pastor Rebecca Ireland, Church of the Mountains United Methodist Church, urged community partnerships while expressing empathy for neighbors.
• Cindy Basso, Fellowship of Compassion founder and THAC co-chair, said the center prepares residents for permanent supportive housing at Pacific Crest Commons.

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Looking Ahead

Watch Nevada County's CDBG decision. It determines whether the $235,000 commitments take effect, and the lease and VOA contract expire around the end of December or January. Surge-bed triggers still need to be set with VOA and THAC. The bus-stop dwell-time proposal returns during council work planning.