City Pursues $8.4M State Grant to Address Magnolia Avenue Homeless Encampments
Council authorizes application for three-year outreach and housing program targeting corridor between Central and La Sierra.
The City Council approved a plan Tues. June 16 to pursue about $8.4 million in state funding aimed at reducing homelessness along one of the city's most visible encampment corridors.
The council authorized city staff to apply for $8.4 million through California's Encampment Resolution Funding Program to support a targeted homelessness response along Magnolia Avenue between Central and La Sierra avenues.
If awarded, the grant would fund a three-year effort focused on outreach, interim housing and permanent housing placements for people living unsheltered in the corridor.
City staff identified the Magnolia corridor as a priority encampment zone because of recurring homelessness activity spread across commercial areas, sidewalks, parking lots and public rights-of-way.
According to the report, the city recorded 3,418 interactions with unhoused individuals near the corridor since July 2025, with 912 people completing full intake assessments.
The proposed project would provide housing case management, clinical outreach, mobile hygiene services, motel-based interim shelter, rapid rehousing assistance and reunification support.
Under the proposal, nonprofit service provider CityNet would lead housing navigation and case management efforts, while Renewing Hope would provide clinical outreach, street medicine and mobile hygiene services. The project would also coordinate with county and state agencies to help participants obtain identification documents, benefits, behavioral health services and employment support.
Staff estimates the Magnolia corridor area includes about 250 people currently living in encampments and anticipates an additional 250 people entering the corridor during the three-year grant period.
The city expects to serve about 200 people annually, moving about 100 people into interim housing and placing about 70 people into permanent housing each year. The proposal includes funding for up to 70 motel-based interim placements annually and support for up to 30 reunification exits each year.
The city's approach emphasizes low-barrier services, according to the proposal, meaning that participation in treatment, sobriety, medication compliance, rental history and most criminal convictions would not be used as conditions for outreach, interim placement or housing assistance.
The plan also includes funding for pet-related shelter improvements and supplies intended to reduce situations where people decline shelter because they cannot accommodate pets or service animals.
State housing officials are expected to announce awards in September. If Riverside receives funding, staff expects implementation work to begin after contract execution, with housing placements beginning in January 2027 and projected permanent housing outcomes extending through June 2029.
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