REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHIL SKEI, Assistant Director
Planning and Development Department
BY: CRYSTAL SILVA, Senior Management Analyst
Homeless Services Division
SUBJECT
Title
Actions pertaining to Emergency Shelter operations provided by Elevate Community Services (Elevate) under the Homeless Housing, Assistance and Prevention (HHAP) program. (City Council District 3) (Bid File No. 12500851):
1. Approve the First Amendment for Ambassador Inn, a 53-bed shelter located at 1804 W. Olive Avenue (APN 449-231-11). The amended agreement term is from April 1, 2026 through March 31, 2027, for an amount not to exceed $1,324,600.
2. Approve the First Amendment for Villa Motel, a 52-bed shelter located at 817 N. Parkway Drive (APN 449-335-25). The amended agreement term is from April 1, 2026 through March 31, 2027, for an amount not to exceed $1,299,998.
3. Approve the First Amendment for Fresno Home, a 50-bed emergency shelter located at 2550 W. Clinton Avenue (APN 442-081-28). The amended agreement term is from July 1, 2026 through June 30, 2027, for an amount not to exceed $1,250,000.
Body
RECOMMENDATION
Staff recommends that the City Council approve the following First Amendment agreements related to shelter operations provided by Elevate under the HHAP program, and authorize the City Manager, or designee to sign all implementing agreements.
1. Ambassador Inn - A 53-bed emergency shelter located at 1804 W. Olive Avenue (APN 449-231-11), for the term of April 1, 2026 through March 31, 2027, for an amount not to exceed $1,324,600.
2. Villa Motel - A 52-bed emergency shelter located at 817 N. Parkway Drive (APN 449-335-25), for the term April 1, 2026 through March 31, 2027, for an amount not to exceed $1,299,998.
3. Fresno Home - A 50-bed emergency shelter located at 2550 W. Clinton Avenue (APN 442-081-28), for the term July 1, 2026 through June 30, 2027, for an amount not to exceed $1,250,000.
EXECUTIVE SUMMARY
The City of Fresno (City) currently has agreements with Elevate for the operation of Ambassador Inn, Villa Motel, and Fresno Home. The agreements were awarded through procurement under RFQ 12500851, released on October 18, 2024. The RFQ allows for an initial one-year term with two optional one-year extensions.
The Ambassador Inn and Villa Motel initial agreements with the option for two one-year extensions were approved by City Council on March 13, 2025, for the term is April 1, 2025, through March 31, 2026. The Fresno Home initial agreement with the option for two one-year extensions was approved by City Council on June 19, 2025, for the term July 1, 2025, through June 30, 2026.
Ambassador Inn and Villa Motel provide critical support to individuals experiencing homelessness by offering emergency shelter and access to essential supportive services. These services are designed to help individuals achieve stability and create a safe environment where they can begin building the skills and resources necessary to transition into long-term housing. In addition to shelter, guests often receive assistance such as case management, referrals to community resources, and guidance toward employment and housing opportunities.
Fresno Home operates as a family emergency shelter, serving households with children who are facing housing insecurity. It offers safe and temporary housing for families while they work toward securing permanent housing solutions. Beyond providing a secure place to stay, Fresno Home connects families with supportive programs that address immediate needs and help them navigate the challenges of homelessness, ensuring a pathway toward stability and self-sufficiency.
Since the start of these agreements, Elevate has proven to be a strong partner in addressing homelessness. They have consistently met performance goals and provided safe, welcoming environments that support individuals and families in creating pathways to permanent housing.
Considering these successes, staff recommend extending the agreements as permitted by the current terms:
1. Ambassador Inn: A 53-bed emergency shelter located at 1804 W. Olive Avenue (APN 449-231-11), for the term of April 1, 2026, through March 31, 2027, for an amount not to exceed $1,324,600.
2. Villa Motel: A 52-bed emergency shelter located at 817 N. Parkway Drive (APN 449-335-25), for the term April 1, 2026, through March 31, 2027, for an amount not to exceed $1,299,998.
3. Fresno Home: A 50-bed emergency shelter located at 2550 W. Clinton Avenue (APN 442-081-28), for the term July 1, 2026, through June 30, 2027, for an amount not to exceed $1,250,000.
BACKGROUND
California’s Homeless Housing, Assistance, and Prevention (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.
To utilize these funds, the City issued a Request for Qualifications (RFQ) 12500851 on October 18, 2024, seeking proposals for operating triage centers/emergency shelters and coordinating services. The funding will be applied under the Operating Subsidies eligible use category. By the December 17, 2024 deadline, the City received five proposals, all of which met the qualification requirements.
A selection panel comprised of representatives from the City’s Housing and Community Development, Homeless Services, and Homeless Assistance Response Team (HART) divisions within the Planning & Development Department, along with a representative from the City of San Jose evaluated all submitted proposals. The evaluation criteria included the ability to meet service requirements, compliance with RFQ terms and conditions, cost-effectiveness, past performance, and relevant qualifications.
After a thorough review process, Elevate’s proposal was selected as the most responsive and best aligned with the City’s operational goals to operate Ambassador Inn, Villa Motel and Fresno Home. On March 13, 2025, City Council approved Elevate Community Services as the operator for Ambassador Inn and Villa Motel for an initial one-year term, effective April 1, 2025, through March 31, 2026, with the option for two one-year extensions. Subsequently, on June 19, 2025, the City Council approved the agreement for Fresno Home, for an initial one-year term from July 1, 2025, through June 30, 2026, with the option for two one-year extensions.
Since then, Elevate has demonstrated strong performance as a partner, effectively managing shelter operations and supporting individuals experiencing homelessness in their transition to permanent housing. At this time, staff is requesting City Council approval for amendments to Elevate’s agreements to extend shelter operations as permitted by the current terms at the following locations:
1. Ambassador Inn - A 53-bed emergency shelter located at 1804 W. Olive Avenue (APN 449-231-11), for the term of April 1, 2026, through March 31, 2027, for an amount not to exceed $1,324,600.
2. Villa Motel - A 52-bed emergency shelter located at 817 N. Parkway Drive (APN 449-335-25), for the term April 1, 2026, through March 31, 2027, for an amount not to exceed $1,299,998.
3. Fresno Home - A 50-bed emergency shelter located at 2550 W. Clinton Avenue (APN 442-081-28), for the term July 1, 2026, through June 30, 2027, for an amount not to exceed $1,250,000.
ENVIRONMENTAL FINDINGS
This is not a project as defined by the California Environmental Quality Act.
LOCAL PREFERENCE
Local preference is not applicable.
FISCAL IMPACT
These agreements will have no general fund impact and will be funded through State funds.
Attachments:
Ambassador Inn - First Amendment
Villa Motel - First Amendment
Fresno Home - First Amendment