The County Board of Supervisors today unanimously approved expanding San Diego County’s successful regional Homeless Diversion Fund, authoring a contract with the San Diego Housing Commission to administer a $2 million effort funded by San Diego philanthropic institutions, the County of San Diego, and the City of San Diego.

This impactful program has already demonstrated it can keep families housed at a fraction of the cost of emergency shelter.

“The County of San Diego is doubling down on what works,” said Terra Lawson-Remer, Chair of the County Board of Supervisors. “The data is clear: early intervention works, it’s cost-effective, and it keeps families housed. Today we voted to put tax dollars to work where the evidence is strongest and stretch every taxpayer investment by bringing in philanthropic partners alongside us.”

“I’m grateful to my colleague, Supervisor Lawson-Remer for her leadership and partnership on this important action to address homelessness. These projects are lifting people up in our community and we are changing lives .” said Supervisor Joel Anderson (District 2)

The action reflects a commitment to making every public dollar count. By redirecting $1.1 million in funding from the Building Partnerships Program — which provided grants for sleeping cabins and has seen limited uptake — toward a program with a proven track record, the County is ensuring that existing resources are deployed where the evidence is strongest.

Critically, the County’s $1.1 million investment is expected to leverage philanthropic partnerships, bringing total program funding to approximately $2 million — nearly doubling the public investment at no additional cost to taxpayers.

A PROGRAM THAT WORKS

The first round of the regional Homeless Diversion Fund, launched in 2023 with a $1.5 million investment, demonstrated remarkable results. Nearly 600 individuals received case management support and flexible financial assistance — for security deposits, rental arrears, moving costs, and utility payments — at an average one-time cost of just $3,150 per household. By comparison, a typical six-month emergency shelter stay costs more than $15,000.

Diversion doesn’t just save money, it frees up shelter beds and wraparound resources for individuals with the most complex needs.

Ninety-six percent of participants retained stable housing after 12 months. At its peak, the program accounted for 9% of all exits from homelessness across the region.

TURNING THE CURVE ON HOMELESSNESS

The investment comes as the region is seeing real, measurable progress on reducing street homelessness.

The 2025 Point-in-Time Count — the most recent tally with publicly available data — found 9,905 individuals experiencing homelessness across San Diego County, a 7% decrease from 2024.

Programs like diversion are a critical reason the curve is turning.

“For far too many San Diego families, a single missed paycheck or unexpected expense is all it takes to tip from housing instability into homelessness,” said Supervisor Lawson-Remer. “This program meets people at that exact moment of crisis, before a short-term emergency becomes something much harder to undo.”

REGIONAL IN REACH, LOCAL IN IMPACT

The program will be administered by the San Diego Housing Commission, which has operated its own diversion program since 2017 and has assisted more than 900 households across the City of San Diego. It will work with at least 20 community-based provider organizations to train frontline staff and deliver diversion services countywide.

One-third of the County’s funding is committed to serving individuals in unincorporated communities, ensuring that residents outside city boundaries are not left behind.

The San Diego Housing Commission will report to the County on program outcomes — households served, financial assistance provided, and long-term stabilization rates — and direct participant follow-up at six-month and one-year intervals.