REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHILIP SKEI, Assistant Director
Planning and Development Department
BY: JENNIFER DAVIS, Senior Management Analyst
Housing Finance Division
SUBJECT
Title
Approve a First Amendment to the State and Local Fiscal Recovery Funds (Part of the American Rescue Plan Act) Grant Agreement between the City of Fresno, Fresno Rescue Mission, Inc., and Fresno City Center, Inc., to extend the project schedule for the development of a new shelter facility for Transitional Age Youth (Council District 4)
Body
RECOMMENDATION
Staff recommends the City Council approve a First Amendment to the State and Local Fiscal Recovery Funds (Part of the American Rescue Plan Act) Grant Agreement between the City of Fresno, Fresno Rescue Mission, Inc., and Fresno City Center, Inc., to extend the project schedule for the development of a new shelter facility for Transitional Age Youth by approximately 180 days to May 15, 2027.
EXECUTIVE SUMMARY
On December 5, 2024, the City Council approved a State and Local Fiscal Recovery Funds (SLFRF) Grant Agreement in the amount of $1,500,000, with Fresno Rescue Mission, Inc. and Fresno City Center, Inc. (+Developer), for the development of a new shelter facility that will serve Transitional Age Youth (TAY), ages 18 to 24 years, who are experiencing or at-risk of homelessness.
Approving a First Amendment to the SLFRF Grant Agreement between the City of Fresno and Developer will extend the overall project schedule approximately 180 days to May 15, 2027 due to a delay in the architectural and design phase of the project. The modification to the project timeline is permitted under the original Agreement and will not delay the full funds expenditure date of December 31, 2026.
BACKGROUND
The City received State and Local Fiscal Recovery Funds (SLFRF) from the U.S. Department of Treasury under the American Rescue Plan Act (Pub.L.117-2) (the Act). The City has elected to use a portion of the allocation to support the COVID-19 Public Health and Economic Response to address impact on households and communities by using funds to reduce homelessness through emergency housing assistance, including temporary residences for people experiencing homelessness, which is an eligible use of funds under the Act.
On October 28, 2024, the City’s Housing Finance Division released a Notice of Funding Availability (NOFA) to solicit proposals for the development of a new Transitional Age Youth (TAY) shelter facility. In response, the City received several applications and a selection committee comprised of representatives from the City’s Homeless Services, Housing Finance, and Housing Production divisions evaluated the proposals. After review, the committee recommended funding the proposal from Fresno Rescue Mission for the development of the Fresno Missing Youth Center. This project aims to reduce homelessness among vulnerable youth by providing safe housing and wraparound services. The center will be located on property owned by the Developer at 2111 East Dakota Avenue, Fresno, California (APN 436-270-15). The total estimated cost of the project is $13,650,000.00, and funding sources include private loans and donations, City SLFRF funds, and New Market Tax Credits. The City’s contribution of $1,500,000 in SLFRF funds will support development and construction costs.
On December 5, 2024, the City Council approved a State and Local Fiscal Recovery Funds (SLFRF) Grant Agreement in the amount of $1,500,000, with Fresno Rescue Mission, Inc. and Fresno City Center, Inc. (Developer), for the development of the shelter facility that will serve Transitional Age Youth (TAY), ages 18 to 24 years, who are experiencing or at-risk of homelessness. The project was originally expected to begin construction on August 1, 2025, with completion scheduled for November 1, 2026. Full shelter occupancy was expected by December 1, 2026, and complete funds expenditure by December 31, 2026.
In August 2025, the Developer requested an extension of the project timeline due to a delay in the architectural and design phase of the project. The extended schedule is as follows: submission of architectural drawings to the City for approval on October 1, 2025; construction commencing on March 1, 2026, construction completion by May 1, 2027, and full occupancy of the transitional age shelter occurring no later than May 15, 2027. These changes to the project timeline are permitted under the original Agreement and will not delay the full funds expenditure date of December 31, 2026.
Once completed, the Fresno Mission Youth Center will assist the City in meeting goals outlined in the City’s Housing Element of the 2035 General Plan, the 2025-2029 Consolidated Plan, and the “One Fresno Housing Strategy”, by providing transitional housing and supportive services for young adults experiencing or at risk of homelessness. The project will focus on housing stability and offer services such as case management, job training and life skills development, with priority given to transitional age youth who are currently or were previously in the foster care or probations system.
ENVIRONMENTAL FINDINGS
Staff determined that this project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) Guidelines pursuant to Section 15332/Class 32 (Infill Development), meeting the following conditions:
a) The project is consistent with applicable general plan designation and applicable zoning designation and regulations.
b) The project occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses.
c) The project has no value as habitat for endangered, rare or threatened species.
d) Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality.
Furthermore, staff determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project.
On December 5, 2024, City Council adopted a finding of Categorical Exemption pursuant to Section 15332/Class 32 (Infill Development) of CEQA Guidelines.
LOCAL PREFERENCE
Local preference was not considered because this action today does not include a bid or award of a construction or services contract.
FISCAL IMPACT
This project is located in Council District 4 and will have no impact on the City’s General Fund. The $1,500,000 in State and Local Fiscal Recovery Funds for the agreement was appropriated to the Planning and Development Department as part of its FY23/24 Budget.
Attachments:
• First Amendment to SLFRF Grant Agreement for Transitional Age Youth Shelter
• SLFRF Grant Agreement for Transitional Age Youth Shelter