The battle over funding for Turlock's We Care emergency men's shelter has triggered a deeper crisis: one that could cost the city millions in state money.

The California Department of Housing and Community Development (HCD) says Turlock's refusal to allocate even a single dollar that would have unlocked nearly $270,000 in state funding for We Care points to a much bigger issue.

In a letter to the city, HCD warns that Turlock's entire housing plan has been out of compliance since December 2023 and unless the city takes action, it risks steep fines, lawsuits and the loss of affordable housing funds.

Mayor Amy Bublak defends the council's decision, saying the funding was tied to requests like 24-hour restrooms at the shelter and came down to accountability.

"It just looked like a little bit of a threat, that that dollar was going to be what keeps them coming after you," Bublak told CBS13. "And that, to me, makes no sense."

Bublak says the city is working on meeting housing requirements but argues the attention on Turlock has gone too far.

"It just seems odd that the town of 73,000 — and they're hammering on us about this," she said. "We'll get it done. We're working on it."

HCD has given Turlock until July 3 to respond with a plan, or face consequences that could include fines up to $100,000 a month and legal action from the state.

• Turlock