REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHIL SKEI, Assistant Director
Planning and Development Department
BY: ERIKA LOPEZ, Senior Management Analyst,
Housing and Community Development Division
SUBJECT
Title
Approve a First Amendment to the Emergency Solutions Grant (ESG) agreement between the City of Fresno and Poverello House to extend the term of the agreement through November 30, 2024, and increase the funding by $20,707.57 for a total award of $222,069.57 for Street Outreach within the City of Fresno.
Body
RECOMMENDATION
Staff recommends the City Council approve the first amendment to the agreement between the City of Fresno and Poverello House to increase funding for the HOPE Team providing street outreach to unsheltered individuals within the City of Fresno and authorize the City Manager or designee to sign all necessary implementing agreements as approved to form by the City Attorney.
EXECUTIVE SUMMARY
Staff completed an assessment of ESG expenditures in preparation for the Program Year 2022 ESG expenditure deadline of September 26, 2024, and determined there would be a shortfall of $20,707.57. In order to fully expend the funds by the deadline, Staff proposes amending the agreement with Poverello House for its HOPE Team to provide street outreach services to unsheltered individuals experiencing homelessness. The proposed amendment extends the agreement an additional three months through November 30, 2024, and increases the funding amount by $20,707.57 for a total award of $222,069.57.
BACKGROUND
On April 27, 2023, City Council approved the Program Year 2023-2024 (PY 23) Annual Action Plan for U.S. Housing and Urban Development (HUD) entitlement funding including ESG funding allocations to street outreach, rapid rehousing, and homeless prevention. The City entered into subrecipient agreements with local non-profits to provide the services outlined in the Annual Action Plan, including the agreement with Poverello House to fund its HOPE Team for street outreach services.
On December 19, 2022, the City released a Notice of Funding Available (NOFA) for the PY 23 HUD entitlement funding. The NOFA responses received were reviewed and scored by a selection committee. The responses were scored based on the community needs provided during the Annual Action Plan meetings held throughout the City of Fresno. The HOPE Team received the highest score and was recommended for funding as a result of their proposal providing the necessary services to support the City’s overall homelessness response goals. In contrast to other proposals received, the HOPE Team provides engages unsheltered homeless individuals connecting them to emergency shelters and housing, as well as providing case management and referrals to other resources.
The PY 22 ESG funds have an expenditure deadline of September 26, 2024. Staff evaluated the projected expenditures and determined there would be a shortfall of $20,707.57 that would be recaptured by HUD if not fully drawn by the deadline. Staff also evaluated all of the ESG funded projects, the Poverello House HOPE Team had the highest and most consistent spending trend. Reprograming the PY 22 ESG funds to the HOPE Team’s activity would ensure they were expended by the deadline. Given Poverello House’s HOPE Team engagement with unsheltered individuals and its ability to expend funds in a timely manner, staff recommends moving the $20,707.57 from rapid rehousing and homeless prevention activities to the street outreach activity and adding the funds to the current, PY 23 HOPE Team agreement to ensure the funds are fully expended and drawn before the deadline.
During the period of July 01, 2023, through June 30, 2024, Poverello House’s HOPE Team engaged 855 unduplicated unsheltered homeless individuals and directly linked 242 to emergency shelter, 2 individuals to a substance abuse facility, and 29 to permanent and temporary housing. Additionally, the Poverello House HOPE Team has consistently met all expenditure deadlines set forth in their various agreements.
The recommended amendment to the Poverello House HOPE Team agreement will extend the term of the agreement by three months and increase the total funding by $20,707.57 to ensure the PY 22 ESG funds are fully drawn prior to the expenditure deadline.
ENVIRONMENTAL FINDINGS
This is not a project for the purposes of CEQA guidelines Section 15378. An environmental review pursuant to the National Environmental Policy Act was completed on May 31, 2023, and it was determined that this activity is Categorically Excluded not subject to Section 58.5 Pursuant to 24 CFR Part 58.35 (b) (2) & (3).
LOCAL PREFERENCE
Local preference is not applicable because of the use of federal funding.
FISCAL IMPACT
The amendment to the agreement will be funded through the City’s PY 22 ESG allocations.
Attachments:
ESG Agreement with Poverello House
First Amendment to the ESG Agreement with Poverello House