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 Poverello House (Poverello) under the Encampment Resolution Funding (ERF) program. (Council District 3 and 4) Bid File No. 12500851:
1. Approve the First Amendment to the agreement with Poverello House to (1) terminate the operation of the thirty (30) ERF-3-funded emergency shelter beds at Clarion Pointe (Hope Pointe) (APN 434-143-06) effective June 30, 2026; (2) transfer the thirty (30) emergency shelter beds and the remaining ERF-3 budget of $590,797.02 from Clarion Pointe to Village of Hope, located at 412 F. Street (APN 467-083-55). The amended agreement term is from July 1, 2026, through December 31, 2026, with total compensation not to exceed $590,797.02 in ERF-3 funds.
2. Approve the First Amendment to the agreement with Poverello House for the provision of professional homeless emergency shelter services at the Village of Hope, located at 412 F. Street (APN 467-083-55). The amended agreement term is from July 1, 2026, through December 31, 2026, with total compensation not to exceed $250,000 in ERF-2 funds providing for the operation of twenty (20) shelter beds at Village of Hope.
Body
RECOMMENDATION
Staff recommends that the City Council approve the following First Amendment agreements related to shelter operations provided by Poverello House under the ERF program, and authorize the City Manager, or designee to sign all implementing agreements.
1. Approve the First Amendment to the agreement with Poverello House to (1) terminate the operation of the thirty (30) ERF-3-funded emergency shelter beds at Clarion Pointe (Hope Pointe) (APN 434-143-06) effective June 30, 2026; (2) transfer the thirty (30) emergency shelter beds and the remaining ERF-3 budget of $590,797.02 from Clarion Pointe to Village of Hope, located at 412 F. Street (APN 467-083-55). The amended agreement term is from July 1, 2026, through December 31, 2026, with total compensation not to exceed $590,797.02 in ERF-3 funds.
2. Approve the First Amendment to the agreement with Poverello House for the provision of professional homeless emergency shelter services at the Village of Hope, located at 412 F. Street (APN 467-083-55). The amended agreement term is from July 1, 2026, through December 31, 2026, with total compensation not to exceed $250,000 in ERF-2 funds providing for the operation of twenty (20) shelter beds at Village of Hope.
EXECUTIVE SUMMARY
The actions presented for City Council consideration support the transition and continued operation of emergency shelter services for individuals experiencing homelessness in Council Districts 3 and 4. The proposed amendments authorize the orderly closure of the thirty (30) ERF-3-funded emergency shelter beds currently operated at Clarion Pointe (Hope Pointe) by June 30, 2026, and the seamless transfer of these beds along with the remaining ERF-3 budget to the Village of Hope at 412 F Street. This transition ensures that critical shelter capacity is preserved at the Village of Hope, allowing services for unhoused individuals to continue without interruption as existing agreements conclude. The amendments further authorize ongoing professional shelter operations at the Village of Hope through December 31, 2026, supported by both ERF-3 and ERF-2 funding streams, and establish clear terms related to service delivery, reporting, and compliance with applicable federal, state, and local requirements.
Collectively, these actions advance the City’s broader encampment resolution strategy by maintaining essential emergency shelter resources, strengthening housing-focused case management, and upholding a low-barrier and inclusive service model. The amendments also reinforce the City’s commitment to data-driven oversight, fiscal stewardship, and the implementation of best practices in shelter operations-supporting improved outcomes for individuals experiencing homelessness and enhancing the overall effectiveness of the City’s response.
BACKGROUND
The City’s engagement with Poverello House for emergency shelter operations under the Encampment Resolution Funding (ERF) program is rooted in a multi-year, multi-phase strategy to address unsheltered homelessness in Fresno, particularly within Council Districts 3 and 4. The ERF program, administered by the California Interagency Council on Homelessness (Cal ICH), was established to support local jurisdictions in resolving encampments and facilitating transitions to safe, stable housing. The City of Fresno has participated in all three rounds of ERF funding, securing awards through competitive applications and Council-approved resolutions, and has consistently partnered with Poverello House due to its demonstrated capacity and alignment with program objectives.
The City’s initial ERF-1 award in 2022 enabled the launch of Project Downtown Hope, including the Village of Hope site at 412 F Street, which provided emergency shelter and housing navigation services for individuals residing in encampments. Subsequent ERF-2 and ERF-3 awards expanded the City’s shelter and outreach capacity, with Poverello House operating both Clarion Pointe (Hope Pointe) and Village of Hope under separate agreements. These agreements have been amended over time to respond to evolving needs, funding timelines, and the expiration of prior contracts, ensuring continuity of services and compliance with state and federal requirements.
The current actions are necessitated by the scheduled expiration of the existing ERF-3-funded shelter beds at Village of Hope on June 30, 2026, and the need to maintain uninterrupted shelter capacity as part of the City’s encampment resolution strategy. The proposed amendments authorize the early termination of thirty ERF-3-funded beds at Clarion Pointe, effective June 30, 2026, and the transfer of these beds and the remaining ERF-3 budget to Village of Hope for continued operations through December 31, 2026. This transition is designed to offset the loss of the sixty-five ERF-3-funded beds at Village of Hope that would otherwise go offline, thereby preserving critical shelter resources in the target districts.
In parallel, the First Amendment to the Village of Hope agreement extends professional shelter operations at that site through December 31, 2026, utilizing ERF-2 funds to support an additional twenty beds. Both amendments incorporate robust compliance provisions, including adherence to 2 CFR Part 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards), monthly and annual financial reporting, and performance monitoring in accordance with HUD Homeless Management Information System (HMIS) standards. The agreements also require the service provider to maintain all applicable insurance, submit to regular City oversight, and comply with Fresno Municipal Code Section 4-107, which governs public contracting and conflict of interest disclosures.
The legal sufficiency of these amendments has been reviewed and approved to form by the City Attorney, as evidenced by executed signature blocks in the agreements. Conflict of interest disclosures submitted by Poverello House indicate no current or anticipated conflicts with City staff or other City contracts.
The process leading to these recommendations included competitive Requests for Qualifications (RFQs), rigorous proposal review by City staff and external partners, and ongoing performance evaluation of Poverello House’s service delivery. The City’s selection of Poverello House reflects its track record of meeting or exceeding occupancy, housing placement, and data quality benchmarks, as well as its capacity to implement low-barrier, housing-first shelter models that align with state and local policy priorities.
In summary, the proposed amendments are a direct response to the scheduled expiration of existing shelter agreements and are structured to ensure regulatory compliance, fiscal accountability, and the uninterrupted provision of emergency shelter services for individuals experiencing homelessness in the City of Fresno. These actions are consistent with the City’s broader encampment resolution and homelessness response strategies, and are supported by a documented history of successful partnership, legal review, and alignment with all applicable funding and regulatory requirements.
ENVIRONMENTAL FINDINGS
This is not a project as defined by the California Environmental Quality Act.
LOCAL PREFERENCE
Local preference is not applicable because of the use of state funds.
FISCAL IMPACT
These agreements will have no general fund impact and will be funded through ERF funds.
Attachment:
Clarion Pointe ERF-3 First Amendment & Original Agreement
Village of Hope First Amendment & Original Agreement