By Jorge Casuso

March 24, 2026 -- The City Council will hold a hastily called special meeting Tuesday to clarify the guidelines for a new Neighborhood Organization Grant Program that has prompted the exodus of three groups.

The special session item, which will be heard alongside the regular Council meeting, directs staff to "refine and clarify" the program guidance and "re-open the application period."

"It came to my attention yesterday that the current grant application and guidance may not fully align with the unanimous direction provided by the City Council," Mayor Caroline Torosis wrote in an email to Santa Monica's seven neighborhood groups Monday afternoon.

"Because this program is intended to support neighborhood organizations and strengthen civic participation, it is critical that the rules are clear, consistent, and aligned with Council’s intent."

The item -- co-sponsored by Councilmembers Dan Hall and Ellis Raskin -- "confirms" that while Neighborhood Organizations cannot engage in political activities, they can "form or operate separate affiliated entities" to perform those activities.

The entities, however, "cannot receive taxpayer resources or participate in the City’s Neighborhood Organization Grant Program."

The item also clarifies that "neighborhood organizations may conduct education and outreach related to ballot measures, provided such activities are informational in nature."

It was the political endorsements by two neighborhood groups that prompted the Council on September 30 to overhaul the grant program that provided Santa Monica's seven neighborhood organizations with $7,000 each in funding per year.

The two groups -- Northeast Neighbors and Friends of Sunset Park (FOSP) -- were the first to pull out, followed last Friday by the North of Montana Association (NOMA), which has never made political endorsements.

While the tax status of all three groups allows them to engage in political activities, none has used City money to do so.

Tricia Crane, a leader of Northeast Neighbors, said the group does not plan to apply after the clarifications are made.

"I don't know what the real goal of this is," Crane said. "It's not going to bring anyone back in the fold.

"Are they so shocked people said, 'No, thanks' to the money?" Crane said. "I don't think they were anticipating how independent we are."

Crane said Northeast Neighbors has received more than $3,000 in donations after it became the first group to decline to participate in the new program in February ("Neighborhood Group Pulls Out of City Grant Program," February 10, 2026).

The Councilmembers' item clarifies other issues that were strongly opposed by the dissenting groups, namely that the new program bars them from using funding to communicate directly with residents or recruit members.

The groups also opposed providing demographic information about their membership and the makeup of their boards.

The item on Tuesday's special meeting agenda clarifies that "the use of funds for communications, including mailers, to inform members about meetings, events, and programming is permissible."

The item also clarifies that "any requests for demographic information from participating organizations or their members are strictly voluntary."

In her letter to neighborhood groups, Torosis acknowledged that holding a special meeting with little notice "is less than ideal."

But she added, "I felt this was important enough that we should not wait several weeks until our next council meeting to address the issues that have been raised."

"There will be time for public input, and I welcome your feedback as we move forward," Torosis wrote. "I want to acknowledge the confusion this has caused and thank you for your continued partnership and leadership in our neighborhoods."