San Rafael's planned 65-unit interim homeless shelter at 350 Merrydale Road is delayed because PG&E has not finished a required transformer upgrade, according to draft minutes from the Homelessness Subcommittee's Aug. 20 meeting.

The subcommittee reviewed those minutes on Thursday, Sept. 17. As of Aug. 20, the incomplete transformer work was blocking other electrical tasks tied to the shelter's build-out in Terra Linda. City staff said they were coordinating with PG&E, but the utility's timeline remained uncertain, according to the meeting packet.

No updated timeline has been made public since.

If the transformer delays continue, staff said they would evaluate temporary power solutions to keep the project on schedule and report back to the subcommittee.

The project faces a firm fiscal deadline. The San Rafael City Council approved a $1.08 million contract with Ghilotti Bros. Inc. on July 21 for site preparation, waiving competitive bidding to avoid slowdowns, as the Marin Independent Journal reported. Daniel Cooperman, the city's community services director, said at the time the shelter was expected to open in fall 2026. All grant funds must be spent and the encampment resolved by June 30, 2027.

In July, Cooperman said the city's Sanctioned Camping Area would stay open until the Merrydale shelter is ready. "That's not a change in position — it reflects the reality that the City is not going to close a site that's actively housing and serving people until there is somewhere for them to go," he told the Marin IJ.

Mayor Kate Colin and Vice Mayor Rachel Kertz, the subcommittee's two members, also received a presentation on the 2026 Marin County Point-in-Time Count. The count found chronic homelessness in Marin more than doubled, rising from 217 people in 2024 to 438 in 2026. Eighty-three percent of those counted as chronically homeless were living unsheltered, Patch reported Sept. 11.

Overall homelessness rose more modestly, from 1,090 to 1,128. Nearly three-quarters of those counted were unsheltered in vehicles, encampments or other locations. Veteran homelessness dropped sharply, from 49 to 11. The number of unaccompanied youth fell from 108 to 60.

More than 150 chronically homeless people in Marin have been referred to and accepted for federal Section 8 assistance but are still waiting for vouchers, according to the county.

Dr. Lisa Warhuus, Marin County's assistant county executive and director of Health and Human Services, said Sept. 11 when the count was released that the increase in chronic homelessness "underscores the urgent need for more permanent supportive housing and housing resources for people with the most complex needs."

The subcommittee also reviewed minutes covering a $3 million, two-year county homelessness prevention pilot targeting more than 340 households. The program, a local adaptation of a regional model operated by BACS, aims to stabilize 170 households per year, with a goal of keeping 90% housed at three to six months.

The 350 Merrydale project is funded through nearly $6 million in state Encampment Resolution Fund grants, an $8 million county Affordable Housing Trust Fund grant and local sources. The shelter will serve up to 70 people, prioritizing residents of the Sanctioned Camping Area. After the shelter term ends, no later than June 2029, the 2.3-acre site is slated for at least 80 units of affordable housing.