Sacramento County-funded homelessness programs served 6,662 people during the most recent fiscal year, a 44% increase over three years, while 43% of participants who left programs transitioned into permanent housing, according to the county’s latest Homeless Impact and Outcomes Report.
The findings were shared with the Sacramento County Board of Supervisors Tuesday, Aug. 25, as part of a detailed review of the county’s growing investment in homelessness services, results from shelters and housing programs, oversight of nonprofit contractors and the financial auditing process used to track tens of millions of dollars in public funding. The report also outlined several initiatives underway as the county works toward a more coordinated regional response to homelessness.
Emily Halcon, director of Sacramento County’s Department of Homeless Services and Housing, presented the program and performance review, tracing county homelessness policies and investments back to 2016 and outlining how those decisions have shaped the Housing First approach and expansion of services over the past decade.
The review comes as Sacramento County prepares to contract more than $65 million to community-based organizations during the coming fiscal year to operate shelters, outreach efforts, housing programs and other services for people experiencing homelessness.
According to Sacramento County’s Fiscal Year 2025-26 Homeless Impact and Outcomes Report, the number of people reached through selected county-funded programs has increased substantially in recent years. The total climbed from 4,614 in fiscal year 2023-24 to 5,735 the following year and 6,662 in 2025-26 — a 44% increase over the three-year period.
County-funded shelter capacity increased during the same period, although at a slower rate. According to the report, the number of funded shelter beds grew from 1,072 in 2023-24 to 1,122 in 2024-25 and 1,319 in 2025-26, representing 23% growth over three years. The figures include programs operated by the Department of Homeless Services and Housing, Behavioral Health Services and the Department of Child, Family and Adult Services.
The 2025-26 results were drawn from the Homeless Management Information System and include Department of Homeless Services and Housing-funded programs along with selected Behavioral Health Services and Department of Child, Family and Adult Services shelter programs. The report covers outreach, shelter and interim housing, rehousing, prevention and diversion, and transitional housing programs.
During the fiscal year, the selected programs recorded 4,752 new enrollments and 5,264 exits. The county notes those categories are not mutually exclusive because a person may have already been enrolled when the fiscal year began, may remain enrolled when it ends or may have multiple enrollments, exits and participants within the year.
Of those leaving programs, county data show 59% went to what the report classifies as a positive destination. Permanent housing accounted for 43% of all exits. Another 27% exited to an unsheltered situation, while destination information was unavailable for 14%.
The overall 43% permanent housing rate, however, varied considerably depending on the type of program involved.
According to the county report, rehousing programs recorded the highest permanent housing exit rate at 78%, with another 15% going to other positive destinations. Prevention and intervention programs followed closely, with 77% exiting to permanent housing and another 10% reaching another positive destination.
Transitional housing programs recorded a 58% permanent housing rate and another 22% of participants exiting to other positive destinations.
Shelter and interim housing programs had a 27% permanent housing exit rate, with another 16% going to other positive destinations. Outreach programs recorded a 12% permanent housing exit rate and another 36% going to other positive destinations. The county’s report distinguishes among the different program types and the populations and purposes they serve, making the percentages part of a broader picture of how people move through the homelessness response system.
The annual numbers also varied considerably month to month. County figures show permanent housing exits at 50% in July 2025 before dropping to 24% in December. The rate climbed to a fiscal-year high of 56% in January before ending at 31% in June. Overall positive exits ranged from 39% to 66% during the year.
According to figures presented to supervisors, the overall 43% permanent housing exit rate narrowly exceeded the county’s 42% performance target. County contracts also incorporate other performance measures, including positive exit destinations, income improvements among participants and shelter utilization, although individual program expectations can vary depending on eligibility requirements, populations served and available resources.
The latest report also provides a look at how long people remain within different parts of the homelessness response system.
Across all selected programs, participants who exited spent an average of 157 days enrolled. Those reaching a positive destination averaged 147 days, while those reaching permanent housing averaged 150 days.
Outreach participants averaged 133 days for all exits, 135 days for positive exits and 150 days for permanent housing exits. Shelter and interim housing averaged 157 days overall, 166 days for positive exits and 172 days for permanent housing exits.
Rehousing programs involved longer periods, averaging 241 days overall, 236 days for positive exits and 251 days for permanent housing exits. Prevention and intervention programs averaged considerably shorter periods of 100 days overall, 96 days for positive exits and 93 days for permanent housing exits.
Transitional housing recorded the longest stays, averaging 315 days for all exits, 291 days for positive exits and 296 days for permanent housing exits.
County-funded shelters operating throughout the entire fiscal year averaged approximately 86% utilization, according to the report, leaving about 14% of available capacity unused. Sacramento County notes that utilization is measured by days rather than simply counting occupied beds because a bed may be vacant for a day or two during a month while clients transition between placements. The county says measuring utilization by days provides a more accurate picture of use. The calculation covers approximately 1,056 beds and 45 units.
The county’s report also offers a closer look at the financial circumstances of people entering the programs and the barriers many face in securing permanent housing.
Half of participants reported having no income when entering a program. Another 9.6% reported annual income between $1 and $10,000 and 26.6% reported between $10,000 and $20,000. Another 7.5% reported between $20,000 and $30,000, while 6.1% reported $30,000 to $40,000 or more. Only 0.1% had no income data available.
Combined, approximately 86% of participants either reported no income or less than $20,000 annually, according to county data.
The report also shows that providing a shelter bed or housing placement represents only part of the services documented through the programs reviewed.
Care coordination accounted for 49% of documented services provided to participants, while basic needs and essential supports represented 22%. Housing and housing-related services accounted for 9%, benefits and public assistance 6%, CalAIM services 4%, and behavioral health, health care, shelter and interim housing, and employment or education each accounted for approximately 2%.
County data further illustrate the vulnerabilities reported among those seeking assistance.
Among participating heads of household, 92% were classified by the county as very low income. Seventy-eight percent had been homeless in their previous living situation and 77% reported a disabling condition. Fifty-two percent had experienced homelessness for at least a year, 46% reported poor or fair general health and 27% were 55 or older. The county notes that the information is self-reported.
Many participants reported several of those conditions simultaneously. According to the county’s methodology, 61% of heads of household had four or more identified vulnerability factors and were categorized as highly vulnerable. Another 29% had between two and three factors, while 10% had zero or one.
Those figures provide additional context for the housing outcomes reported by the county and the challenges involved in moving people from homelessness into stable housing.
The expanding system also comes with a growing financial commitment.
According to information presented to supervisors, the Department of Homeless Services and Housing has a fiscal year 2026-27 budget of approximately $71.1 million, including about $65.6 million for contracts and services and $5.5 million for salaries and benefits. The department currently oversees approximately $56 million across 28 contracts with 21 community-based providers.
About 70% of contracted funding supports shelter and interim housing, 23% goes toward housing and rehousing, 6% supports outreach and navigation and approximately 1% funds system support.
State funding represents the largest source of contracted dollars at approximately $38 million. Another $15 million comes from the county General Fund, approximately $2 million from realignment funding and $1 million from federal sources. The totals include some partial-year and multiyear contracts.
The Department of Homeless Services and Housing was established in 2023 as Sacramento County consolidated and expanded its homelessness programs. The department has 29 full-time equivalent positions for 2026-27, unchanged from the previous two fiscal years.
Supervisors also heard Tuesday about how that spending is monitored.
Sacramento County Director of Finance Chad Rinde outlined the county’s forensic auditing process for homelessness spending, which examines whether adequate internal financial controls are in place, whether providers comply with contract requirements and whether state and federal standards governing public funds are being followed.
According to the county’s presentation, departments conduct annual risk assessments of providers, with organizations considered high risk referred to the county’s Internal Audit Division of Finance for additional examination.
Auditors can review claims and invoices, general ledgers, supporting documentation for expenses, required outside financial audits, allocation of costs and oversight of subcontractors and subrecipients.
County officials also drew a distinction between financial auditing and evaluating whether homelessness programs are achieving their intended results. The Finance Department examines fiscal compliance, while individual departments remain responsible for monitoring contractor performance and program outcomes.
For fiscal years 2025-26 and 2026-27, the county reported that four provider audits related to homelessness and housing have been completed, four are underway and three additional audits are planned.
County contracts require providers to document program violations, grievances and negative exits, enter information into the Homeless Management Information System in a timely manner, comply with good-neighbor policies and participate in county or community training.
Tuesday’s meeting also brought several organizations involved in delivering those services before supervisors.
Leaders representing Community HealthWorks, First Step Communities, City Net and Brilliant Corners discussed their work with Sacramento County, the populations their organizations serve and trends they are seeing among people experiencing homelessness.
Front-line employees from several organizations also addressed supervisors about their experiences working directly with clients, including people who have successfully moved out of homelessness as well as those who remain on that path.
Providers emphasized the importance of collaboration between community organizations and Sacramento County as homelessness has grown and the regional response has expanded, with representatives expressing support for continuing the county-provider partnership.
The county’s outcomes report identifies dozens of individual programs included in the fiscal year analysis, illustrating the breadth of the system behind the overall statistics.
Outreach efforts include American River Parkway Outreach Navigation Services, Citrus Heights Outreach Navigation Services, Community Based Outreach Navigation Services, Managed Care Plan County Outreach and the Sacramento County Encampment Services Team.
Shelter and interim housing programs include Notoli Place, Senior Safe House, American River Parkway Scattered Site Shelter Program, Encampment Response Fund Scattered Site Shelter Project, East Parkway Safe Stay, Florin Road/Power Inn Safe Stay, Scattered Site Shelter Program, North A Street Campus, Stockton Boulevard Safe Stay, Auburn Oaks, Grove Florin Behavioral Health Bridge Housing, Renwood Hope Behavioral Health Bridge Housing, Center of Hope American Rescue Plan Act, Prop. 47 Emergency Shelter, Next Move Family Shelter, Mather Singles Interim Housing, WellSpace Health Care Transition and Wind Transitional Aged Youth Shelter.
The report also includes rehousing efforts such as the Landlord Engagement Assistance Program, North A Street Campus Rapid Rehousing, Flexible Supportive Rehousing and Housing for a Healthy California-Sustainable Wellness Solutions. Prevention and diversion programs include Transitional Aged Youth Prevention and Intervention and the Landlord Engagement Assistance Program, while transitional housing programs include Housing for a Healthy California-Hope Cooperative Auburn Oaks, Mather Transitional Housing Program for Families, Empower Housing Program and Wind Transformational Housing Program.
The report notes that some individual programs were no longer operational as of July 1, underscoring that the list represents programs included in the fiscal year analysis rather than necessarily the county’s current program inventory.
County outlines work ahead
Beyond measuring the previous fiscal year, Sacramento County’s latest report lays out several initiatives now underway that could reshape how homelessness, behavioral health and housing services are delivered.
Among those efforts are Behavioral Health Outreach Teams, known as HEART. According to the county, behavioral health workers are being assigned to shelters and into the community to engage and assess people with behavioral health challenges and connect them with services.
When necessary, the county says workers can accompany individuals directly into involuntary-care pathways including CARE Court, assisted outpatient treatment and conservatorships.
The county is also working on improving Permanent Supportive Housing services. According to the report, that effort includes an evaluation of Sacramento Housing and Redevelopment Agency and City of Sacramento housing inventory and a workgroup with permanent supportive housing providers to determine how services can be improved and coordinated with housing data.
Regional governance represents another significant piece of the work ahead.
The Board of Supervisors previously directed county staff to work with cities and the Continuum of Care to develop a new regional governance structure for homelessness. Earlier this year, supervisors directed staff to begin working with cities on the framework and selected supervisors Rosario Rodriguez and Pat Hume to represent the county. (agendanet.saccounty.gov)
According to the latest outcomes report, a task force launched Aug. 6 with the goal of developing the regional structure for implementation in 2027. County officials describe the effort as a way to establish a regional governance group capable of making decisions about the strategic direction of the region’s homelessness response.
Several additional projects are also moving forward.
The county reports that it is assessing development of the Watt Avenue Safe Stay Community, described as a service-enriched campus with safe parking and weather respite. Plans call for an on-site Behavioral Health Urgent Care Center and withdrawal management and sobering center.
Sacramento County is also working on a Sacramento Health Information Exchange intended to improve coordination among behavioral health, health care, homelessness providers and the criminal justice system.
Another initiative, the DA CORE Pilot — Sober Living, is being developed in coordination with the District Attorney’s Office. According to the county report, the pilot is expected to provide 25 sober-living beds for people facing criminal charges or participating in diversion and will include intensive on-site substance-use treatment.
Behavioral Health is additionally developing what the county calls Pathways to Involuntary Treatment, an effort the report says is aimed at creating clearer pathways into the civil involuntary-treatment system for people with severe mental illness and/or substance-use disorders.
The Board of Supervisors is expected to receive another report in October detailing total county homelessness investments by funding source, department and program type.
Additional evaluation is also planned, including a review of the county’s coordinated-access system, an evaluation of county homelessness programs and a broader systemwide evaluation as Sacramento County and area cities work toward a more coordinated regional approach.
Taken together, figures in Sacramento County’s latest report show a homelessness service system that has expanded substantially in three years. The county reports funding 23% more shelter beds and serving 44% more people through the selected programs than it did in 2023-24, while 43% of participants exiting the programs during the latest fiscal year transitioned to permanent housing.
The same county data also illustrate the challenges that remain. More than one-quarter of program exits resulted in people returning to unsheltered homelessness, half of participants reported entering programs with no income and 61% of participating heads of household were classified by the county as highly vulnerable based on four or more identified factors.
With more than $65 million in contracted services planned for the coming fiscal year, continued county reporting and audits will provide additional measures of how those public dollars are being used, where people go after leaving programs and whether the regional, housing and behavioral health initiatives now being developed translate into different outcomes in the years ahead.
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