The city of Sausalito has settled a lawsuit with a local homeless advocacy organization that will provide housing assistance to people sheltering at Marinship Park.

The agreement will establish an $18,000 fund to be administered by the Sausalito Homeless Union, according to a statement released by the city last week.

“I am confident we have paved a humane course of action that allows each person’s unique needs to be met,” said Mayor Janelle Kellman. “This agreement will allow us to help folks restore their lives in a way that is far more compassionate and safer than the unfortunate circumstance of living outdoors.”

The fund will be distributed among current and some former residents of the encampment to be used for authorized housing expenses, according to the statement. The money will be overseen by the Sausalito Homeless Union, which brought the lawsuit on behalf of encampment residents.

The agreement provides that the Homeless Union work with a city housing coordinator to assess each person’s case and connect them with housing and related services. The Homeless Union will be responsible for delivering monthly accounting and compliance reports to the city.

“The agreement is an innovative way to get people out of tents and into housing in advance of inclement weather,” said City Manager Chris Zapata. “It’s the right thing to do.”

Marinship Park will be cleaned and returned to its intended use as soon as all encampment residents have obtained housing, according to the city’s statement.