After initially looking to find a new operator of the FARO Homeless Center, the city of Santa Barbara decided that SB ACT will continue operating the center until the city’s lease agreement ends in February 2027. 

In December, city staff recommended that City Net take over operating the center at 621 Chapala St. from the Santa Barbara Alliance for Community Transformation (SB ACT), after numerous complaints from neighbors.

The Santa Barbara City Council wanted to discuss the matter in the new year, but Rene Eyerly, assistant city administrator, said this “left a very short opportunity to fulfill contractual obligations” since the city’s lease at the property ends in February 2027. 

So the city rejected all other proposals to operate the center and decided not to move forward with the request for proposal process, allowing SB ACT to continue operations. 

The FARO (Fostering Access, Resilience and Opportunity) Center, offers services to those who are homeless. The city partnered with SB ACT on the center in June 2024, but since the opening, neighbors, including the nonprofit Jodi House next door, have reported issues. 

There have been complaints about yelling, public urination, loitering, smoking, trespassing and harassment. Some specific instances cited in a letter from Jodi House included that a man allegedly urinated in front of clients. Jodi House is a brain injury support center at 625 Chapala St. 

At the time, City Administrator Kelly McAdoo gave notice to cancel the contract after SB ACT rejected her request to move to a referral-only program.

The city initially moved to a month-to-month contract and then put out a request for proposals. 

At the December City Council meeting, the council acknowledged that SB ACT fixed many of the problems and showed improvement, which is why they didn’t want to rush into a new agreement with City Net. 

While the city’s current month-to-month sublease agreement with SB ACT ends Feb. 4, 2027, Eyerly said they will ensure a transition plan for services and the property “well before that date.”

Because of the city’s budget, and a multi-million dollar investment the city is making in the 816 Cacique St. shelter, Eyerly said there have been no discussions about renewing the lease at 621 Chapala St.

SB ACT leaders released a statement this week announcing the continued operations. They said they will continue strengthening operational systems, expanding partnerships with case management and housing providers, and advancing community engagement initiatives meant to promote positive neighborhood relations. 

SB ACT is “committed to being a good neighbor” and has staff working to respond to concerns quickly and maintain communication with nearby businesses, the statement said. 

In November 2025, SB ACT started the FARO Beacons Program, which employed individuals to lead neighborhood beautification, cleanup, and community improvement projects downtown.