REPORT TO THE CITY COUNCIL
FROM: Jennifer Clark, Director
Planning and Development Department
Philip Skei, Assistant Director
Planning and Development Department
BY: Issiahs Garcia, Management Analyst
Homeless Services Division
SUBJECT
Title
Actions pertaining to the Homeless Housing, Assistance, and Prevention round 6 (HHAP-6) program:
1. ***RESOLUTION - Authorizing acceptance of funding from the State of California Business, Consumer Services and Housing Agency’s (BCSH) Department of Housing and Community Development (HCD) as a regional applicant for the sixth round of Homeless Housing, Assistance, and Prevention Program (HHAP) and authorizing the City Manager to sign all required implementing documents (Subject to Mayor’s Veto).
2. ***RESOLUTION - Adopt the 42nd amendment to the Annual Appropriations Resolution (AAR) No. 2025-179, appropriating $9,756,900.00 from the sixth round of Homeless Housing, Assistance, and Prevention (HHAP) program to support interim housing (Requires Five Affirmative Votes) (Subject to Mayor’s Veto).
Body
RECOMMENDATION
Staff recommends the City Council 1) adopt the Resolution to accept the funding from BCSH and HCD as a regional applicant for the sixth round of HHAP and to authorize the City Manager to sign all required implementing documents and 2) adopt the 42nd amendment to the Annual Appropriation Resolution No. 2025-179, appropriating $9,756,900.00 from the sixth round of HHAP program to support interim housing.
EXECUTIVE SUMMARY
In February 2025, the City of Fresno received a Notice of Funding Availability (NOFA) for HHAP-6 and received notice of an allocation in the amount of $10,491,196.56. On July 17, 2025, Council approved Resolution No. 2025-215 authorizing the City's HHAP-6 application and approved a Memorandum of Understanding (MOU) for a joint application with the Fresno Madera Continuum of Care (FMCoC), Fresno County, and Madera County.
The HHAP-6 application was submitted on August 28, 2025. The City received an award letter from HCD on February 23, 2026, confirming the allocation of $10,491,196.56. To facilitate the funding for the sixth round of HHAP, an AAR must be submitted to appropriate $9,756,900.00 that was not originally allocated in the FY2025-26 budget. The remaining $734,296.56 is scheduled to be appropriated in Fiscal Year 2027.
BACKGROUND
The HHAP program, established in 2019 under AB 101, provides flexible, non-competitive block grants to cities, counties, continuums of care, and tribes. Its purpose is to reduce homelessness through regional, evidence-based strategies that expand shelter capacity, prevent unsheltered homelessness, and deliver housing-focused services tailored to local needs. The City of Fresno received the following HHAP allocations:
• February 2020: $6,158,246.18 (Round 1)
• September 2021: $2,911,171 (Round 2)
• January 2023: $7,524,257.15 (Round 3)
• July 2023: $11,265,425.10 (Round 4)
• October 2024: $13,096,671.82 (Round 5)
Eligible uses of HHAP funds include:
1. Rapid Rehousing - Rental assistance and landlord incentives (e.g., security deposits, holding fees).
2. Operating Subsidies - Support for operations of affordable/supportive housing, emergency shelters, non-congregate shelters, interim or bridge housing, and navigation centers.
3. Street Outreach - Connecting individuals experiencing homelessness to housing and services.
4. Services Coordination - Workforce development, education, training, and other supports for housing stability.
5. Systems Support - Regional coordination to maintain homelessness response systems, especially for vulnerable populations.
6. Permanent Housing Delivery & Innovative Solutions - Development of permanent housing and hotel/motel conversions.
7. Prevention & Shelter Diversion - Crisis resolution, mediation, and light financial assistance to avoid shelter entry.
8. Navigation Centers & Emergency Shelters - Creating or operating centers and shelters with clear pathways to permanent housing.
HHAP-6 is a $760 million grant program authorized Section 13 of AB 166 (Chapter 48, Statutes of 2024; Health & Safety Code (HSC) Section 50239, et seq.), which was signed into law by Governor Gavin Newsom on July 2, 2024. HHAP-6 is established to reflect the state’s priorities to prevent and expeditiously reduce unsheltered homelessness through homelessness prevention activities and sustain existing Interim Housing Solutions and Permanent Housing Solutions, including long-term sustainability of permanent affordable housing. Eligible recipients of HHAP funding include continuums of care, cities (large cities with population over 300,000), counties, and tribal governments.
In a planning group consisting of representatives from the City, FMCoC, County of Madera and Fresno County, began coordinating to complete the proposed Regionally Coordinated Homelessness Action Plan and application template provided by the state. The homelessness action plan developed by the region’s HHAP-6 recipients will ensure a cross-jurisdictional continuum of services to strengthen the region’s crisis response network to address the homelessness crisis. The state requires participating applicants to collaborate and engage in a public stakeholder process to inform the development of the Regionally Coordinated Homelessness Action Plan. The jurisdictional partners hosted a total of five in-person public meetings: one hosted by Madera County, two hosted by Fresno County, one hosted by the City of Fresno, one hosted by the FMCoC; and one virtual meeting was hosted by the City of Fresno. The following stakeholders were invited:
• People with lived experience of homelessness
• Youth with lived experience of homelessness
• Local department leaders and staff from qualifying smaller jurisdictions, including child welfare, health care, behavioral health, justice, and education system leaders
• Homeless service and housing providers operating within the region
• Medi-Cal Managed Care Plans contracted with the State Department of Health Care Services in the region
• Street medicine providers and other service providers directly assisting people experiencing homelessness or at risk of homelessness
The Regionally Coordinated Homelessness Action Plan includes the following key components:
• Defines the specific roles and responsibilities of each participating applicant in the region, including outreach and site coordination, site selection and land use of available land, development of interim and permanent housing options, coordination and connection to service delivery, encampment response policies, and Housing Element compliance with pro-housing designation requirements.
• Outlines 44 key actions to improve the region’s CA System Performance Measures (SPM), identifying funding sources, lead and collaborating entities, implementation timeframes, and methods for measuring success.
• Describes key actions the region will take to ensure racial and gender equity in service delivery, housing placements, housing retention, procurement changes to support equitable access to housing and services, and the ways in which the CoC collaborates with cities and counties.
• Addresses the sustainability of the interim housing portfolio, including how each participating applicant leverages local, state, and federal funding programs to end homelessness.
Per Health and Safety Code section 50240(f), the Regionally Coordinated Homelessness Action Plan must be reflected in a Memorandum of Understanding (MOU) signed by each participating applicant. The MOU commits all signatories to participate in and comply with the Regionally Coordinated Homelessness Action Plan. The MOU was approved by City Attorney’s Office on June 16, 2025. The MOU was then approved by City Council on July 17, 2025. The MOU was then fully executed by the FMCoC on August 5, 2025.
HHAP-6 allocations are based on HUD review of the 2024 Point-in-Time (PIT) Count and are calculated on the proportionate share of the state’s homeless population. The City of Fresno’s allocation totals $10,491,196.56. The initial disbursement will be 50 percent of the HHAP-6 allocation totaling $5,245,598.28 and will be issued once the City of Fresno has contractually obligated 100 percent of HHAP Rounds 1-3, fully expended HHAP Round 1 or returned unspent funds by the 6/30/2025 deadline, expended at least 50 percent and contractually obligated at least 75 percent of the first disbursement of HHAP Round 4, and is in good standing on all required fiscal and HMIS reporting for HHAP Rounds 1-5. All of which have been accomplished by the City of Fresno. To receive the second disbursement of funds, the City must demonstrate that no less than 75 percent of HHAP-6 funds are contractually obligated, and no less than 50 percent of HHAP-6 funds are expended by June 30, 2027.
ENVIRONMENTAL FINDINGS
This is not a project as defined by the California Environmental Quality Act.
LOCAL PREFERENCE
Local preference is not applicable.
FISCAL IMPACT
This resolution will have no general fund impact and will be funded through State funds.
Attachments:
Resolution Authorizing Funding Acceptance HHAP-6 (with attachments)
HHAP-6 AAR
HHAP-6 Award Letter