After Lake Forest originally agreed to give Families Forward, an organization that aims to help end homelessness, $1.6 million for buying and renovating buildings for unhoused families back in May, the budget has been officially approved — and increased.

The organization requested an additional $200,000, assistant city manager Keith Neves said during last week’s City Council meeting, for unforeseeable fees that appeared during its search for a property to house families.

Families Forward CEO Madelynn Hirneise said “prices for houses have been significantly higher than we expected,” estimating it will need up to $2.6 million in additional funds to “bridge that gap.” That additional money will come in from private donors as well as the extra $200,000 from Lake Forest, she said.

Families Forward has been planning to acquire a fourplex property, a multifamily home, and renovate it to fit the needs of families who are unhoused or living in unsafe environments. The organization has not yet chosen a property due to the higher housing rates around El Toro Road, the area where it specifically hopes to buy.

The City Council unanimously approved the budget increase during its June 20 meeting, and each member shared their support for the organization.

This was a “complicated issue,” said Mayor Doug Cirbo, but Families Foward has been doing “many things to help these people in these tough situations.”

But not everyone is on board with the additional allocation.

Lake Forest resident Andy O’Connor said he was “upset and concerned” over this decision to increase the budget.

“I am all for helping people, but I do not know why we are in the business of buying real estate,” said O’Connor. “If we want to help people, why do we need to buy an entire property to do so? It is the more expensive option.”

Other residents expressed “confusion over the allocation of the money” as well as “concern that the money isn’t actually helping anything” during the public comment portion of the City Council meeting.

The decision falls in line with the priorities of the city as the project is an “important investment to meet the city’s goals to provide diverse housing opportunities for all residents,” said Jonathan Volzke, communications and marketing manager for Lake Forest. And the funding is restricted to affordable housing projects, he said, as it comes out of a pool of money already allocated for housing projects.

Earlier this year, the city gave residents a “Lake Forest Resident and Business Satisfaction Survey” which found that 90% of respondents said addressing homelessness was the most important task facing the city.

And on June 28, a dozen nonprofit agencies whose aim is to fight homelessness in Orange County will join law enforcement officials and Lake Forest Councilmember Robert Pequeño to educate residents on how the city is actively fighting against homelessness. This informational meeting is meant to answer any questions residents may have regarding the homelessness crisis in the city and ways residents can help.

Additionally, the City Council approved funding earlier this month for a new staff member who will work with homeless individuals.

Although Families Forward has not given a set timeline for when a property will be bought or when construction will begin, Hirneise said the organization hopes to start by the end of the summer.

“I am thankful for the decision by the Lake Forest City Council and all the support they have shown,” said Hirneise. “I am excited to continue the process of fighting homelessness in Orange County.”

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