WOODLAND, CA – The Yolo County Board of Supervisors is set to consider a staff recommendation Tuesday to discontinue the CalWORKs Pacifico Project in partnership with the City of Davis and redirect the funds to immediate housing support services.
The proposal, appearing as Item 29 on the Nov. 4 Board of Supervisors agenda, would formally end the county’s $1.6 million contribution to the project and reallocate remaining funds to backfill a sudden budget deficit and support short-term housing aid programs.
According to the Yolo County Health and Human Services Agency (HHSA), the Pacifico Project was first introduced in August 2022 as a joint effort with the City of Davis to convert a portion of the Pacifico property into 20 affordable family housing units for CalWORKs families. The plan relied on $1.6 million from the county’s CalWORKs Housing Support Program (HSP), matched by $1.6 million from the city.
The state Department of Social Services (CDSS) granted a one-time exception to use HSP funds for construction, contingent on a 20-year affordability restriction. However, HHSA determined that the project had become financially and operationally infeasible.
Staff cited two key developments that derailed the plan: first, clarification from the state that all HSP funds must be fully spent—not merely encumbered—by Dec. 31, 2025, leaving insufficient time for procurement and construction; and second, a $600,000 reduction in the county’s CalWORKs allocation following a statewide $42 million cut to counties.
Yolo County was notified of its $600,000 reduction on Oct. 9, 2025—after the adoption of the county’s final budget—creating what staff described as an unanticipated budget deficit that must now be addressed through program adjustments and reallocation of funds.
HHSA reported that $163,407 had already been spent on early project development, including design, environmental review, and coordination with the City of Davis and CDSS. That leaves $1,436,593 unspent, including $1 million that must be expended by the end of this year and $436,593 from future allocations that can no longer be used for the project.
Staff now recommends using the current year’s $1 million to backfill the $622,032 funding reduction and redirect the remaining $377,968 toward existing CalWORKs housing programs such as Rapid Rehousing, Eviction Prevention, Landlord Incentives, Move-in Assistance, and Emergency Shelter Placements.
The report emphasizes that this approach “ensures full transparency, maintains continuity of CalWORKs services, and preserves funding for direct client impact while responsibly closing out the Pacifico Project.”
HHSA stated it remains committed to housing support for CalWORKs families through existing programs, including Merkley Housing in West Sacramento, 4th & Hope Bridge Housing in Woodland, Adelante Housing in Davis, and progressive rent and eviction prevention services.
The agency also noted that staff are working with the City of Davis to transfer architectural plans developed for the Pacifico Project to assist in any future rehabilitation efforts by the city.
The Board of Supervisors will take up the item during its Nov. 4 meeting.
The 2022 Pacifico proposal had been the product of extensive collaboration and debate. That year, the Davis City Council unanimously approved a lease agreement with Yolo County to use two of the Pacifico buildings—A and B—for CalWORKs Housing Support Program families, while the other two, C and D, would continue serving income-qualified residents under the city’s affordable housing program.
Under the Housing First model, the program aimed to house up to 38 families, primarily smaller households of three or fewer, while providing supportive services such as employment programs, education, and social activities.
Public comment at the time reflected sharp divides within the community. Tracy DeWit, speaking for the Oakshade West Neighborhood Association, urged the council to reduce the project’s density, limit the lease to three years, and implement 24-hour on-site security and management. She also called for community involvement in how funds were spent and in the selection of property management.
In contrast, Planning Commissioner Georgina Valencia described much of the public opposition as “tantamount to nimbyism,” calling the project “a good use of an asset that the city and the community own.” She said, “It’s clearly a good opportunity to support families and really do the right thing for these families.”
Councilmembers strongly supported moving the lease forward. Josh Chapman, who represents South Davis, emphasized that the program’s success would depend on developing a strong management plan and said he was “definitely supportive” of ensuring security “in perpetuity.”
Gloria Partida, then Mayor, who helped craft the agreement, said the city had “come a long way in understanding the problems that led to the discontent in the neighborhood” and expressed hope the new plan would “be successful for the people that really desperately need this housing.”
Then Councilmember Dan Carson spoke most forcefully about the moral dimension of the project. “The voices that are not here are the voices of those children,” he said. “We have a moral obligation to help them. I don’t care if they’re from Davis or West Sac or Winters or Woodland. We have a moral obligation to help them.”
The council voted unanimously to move the lease forward, a decision that, at the time, appeared to mark a turning point for Pacifico’s troubled history. With the county now poised to withdraw its $1.6 million commitment, the project’s future may again hinge on whether the city can find new funding to carry it forward.
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