REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHIL SKEI, Assistant Director
Planning and Development Department
BY: IEN XIONG, Senior Management Analyst
Planning and Development Department
SUBJECT
Title
Approve the Fourth Amendment to the Service Agreement with Poverello House to operate Clarion Pointe as an emergency shelter for individuals experiencing homelessness. The Fourth Amendment will extend the current emergency shelter operations to December 31, 2025, in a total amount of $562,500. This will be funded using $536,500 from Homeless Housing Assistance and Prevention (HHAP) program fund and $26,000 of unexpended funds from the Encampment Resolution Fund Round 2 (ERF-2)-Village of Hope Project. (Council District 4)
Body
RECOMMENDATION
Approve the Fourth Amendment to the Service Agreement with Poverello House for professional emergency shelter operations at Clarion Pointe. The Fourth Amendment will increase the overall funding provided to Poverello House by $536,500. When incorporating $26,000 of unexpended funds from the ERF-2-Village of Hope Project the total Clarion Pointe agreement is $7,377,152.77. The Fourth Amendment will allow Poverello House to extend shelter operations to December 31, 2025.
EXECUTIVE SUMMARY
The City of Fresno (City) has a current agreement with Poverello House for professional emergency shelter, that will be expiring on September 30, 2025. The City is seeking to award a Fourth Amendment that will extend operations through December 31, 2205 and increase the overall funding to Poverello House by $536,500 from HHAP fundings and utilize $26,000 of unexpended funds from the ERF-2 Village of Hope Project. The shelter extension will enable Poverello House to maintain current shelter capacity for an additional three months.
BACKGROUND
In February 2020, The City was awarded HHAP funding in the amount of $6,158,246.18 from the California Homeless Coordinating and Financing Council to address Homelessness. In September 2021 the City received $2,911,171 in a second round of HHAP allocations. In January 2023 received a total of $7,524,257.15 in a third round of HHAP allocations. July 2023 received $11,265,425.10 in a fourth round of HHAP allocation and in October 2024 the City received notification of $13,096,671.82 allocation in a fifth round of HHAP allocation.
On October 29, 2021, The California Interagency Council on Homelessness published a Notice of Funding Availability for the ERF-1 Program. The ERF-1 Program is designed to assist local jurisdictions in ensuring the wellness and safety of people experiencing homelessness in encampments, including their immediate physical and mental wellness and safety needs arising from unsheltered homelessness and their long-term needs addressed through a path to a safe and
stable housing throughout the state.
On December 9, 2021, City Council approved the City’s application for Encampment Resolution Funds (ERF-1) to support Project Downtown Hope, an initiative focused on addressing an encampment spanning approximately an 8-by-15 block area bounded by Highway 41, Highway 99, and Fresno Street. Following City Council approval, City staff submitted the application, and on March 1, 2022, the California Interagency Council on Homelessness (Cal-ICH) notified the City that it had been awarded an ERF grant in the amount of $5,070,057.68.
On April 28, 2022, City Council approved an agreement with Poverello to assist 100 individuals with transitioning out of street homelessness into 50 Triage emergency shelter beds at Village of Hope, and up to 26 individuals into permanent affordable housing provided under the ERF program as part of the Project Downtown Hope.
On February 23, 2023, City Council adopted Resolution No. 2023-039 authorizing the department to submit a grant application to California Interagency Council on Homelessness (Cal ICH) for funding under the ERF-2R program for services that resolve the experience of unsheltered homelessness for people residing in Project Downtown Hope and transition individuals into interim shelter with clear pathways to permanent housing. On June 14, 2023, the city was awarded ERF-2R funding the amount of $17,000,000.
On September 28, 2023, the City entered into an agreement with Poverello House to operate 90 interim shelter beds at Clarion Point, 65-emergency shelter beds at the Village of Hope, perform street outreach and navigation services, and provide housing stability case management in the amount of $9,780,325.71 using ERF-2R funds through June 30, 2025.
On May 22, 2025, City Council approved an agreement with Poverello House to extend the agreement to September 30, 2025.
The recommended amendment will allow Poverello House to extend shelter operations for three additional months through December 31, 2025, by increasing funding of $536,500 from HHAP funds and utilizing $26,000 of unexpended funds from the ERF-2 Village of Hope Project.
ENVIRONMENTAL FINDINGS
This is not a project as defined by the California Environmental Quality Act.
LOCAL PREFERENCE
Local preference is not applicable due to the use of State Funds.
FISCAL IMPACT
The General Fund will not be impacted, due to the City utilizing State funds to support the project.
Attachment:
Fourth Amendment including Original and First-Third Amendments