REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHIL SKEI, Assistant Director
Planning and Development
BY: JILLIAN GAYTAN, Senior Management Analyst,
Housing and Community Development Division
SUBJECT
Title
Actions pertaining to the Encampment Resolution Funding Program from the State of California Business, Consumer Services and Housing Agency’s California Interagency Council on Homelessness:
1. ***RESOLUTION - Approving acceptance of a grant award from the State of California Business, Consumer Services and Housing Agency’s California Interagency Council on Homelessness (Cal ICH) for funding under the Encampment Resolution Funding Program and authorizing the City Manager to sign all required implementing documents (Subject to Mayor’s Veto); and
2. ***RESOLUTION - Adopting the 60th amendment of the Annual Appropriation Resolution (AAR) No. 2021-178 appropriating $5,070,057.68 for Encampment Resolution Funding Program related activities (Requires 5 Affirmative Votes) (Subject to Mayor’s Veto)
3. Approve a services agreement between the City of Fresno and Poverello House in the amount of $4,662,554.80 for triage center services provided under the Encampment Resolution Funding Program
Body
RECOMMENDATION
Staff recommends the City Council approve the resolution to accept the Encampment Resolution Funding (EFR) Program grant award to address the immediate crises of experiencing unsheltered homelessness in encampments as identified in the City of Fresno’s ERF application; adopt the 60th amendment of Annual Appropriation Resolution No. 2021-178 appropriating $5,070,057.68; and approve an agreement with Poverello House to provide triage center services as part of the City’s EFR Program.
EXECUTIVE SUMMARY
The City of Fresno (City) responded to the Cal ICH Request for Applications (RFA) in December of 2021 and was recognized as an award recipient for the ERF Program. In order to receive the ERF funds and begin the program, City Council must take action to accept and appropriate the grant funds and approve a services agreement with the Poverello House.
BACKGROUND
On October 29, 2021, the California Interagency Council on Homelessness issued a Request for Applications for the ERF Program. The ERF Program is designed to assist local jurisdictions in ensuring the wellness and safety of people experiencing homelessness in encampments, including their immediate physical and mental wellness and safety needs arising from unsheltered homelessness and their longer-term needs addressed through a path to safe and stable housing throughout the State.
On December 9, 2021, Council approved the City’s application for funds through the ERF Program with the promise that staff would return to Council in early 2022 with a request to accept and appropriate the ERF Program funding if awarded the grant. The City submitted an application and on March 1, 2022, was notified by Cal ICH that it had been awarded an ERF grant in the amount of $5,070,057.68.
In order to receive the grant funds, Council must approve the City’s acceptance and appropriation of the funds, and all grant documents must be returned to the State no later than May 8th. Additionally, the City must enter into a services agreement with Poverello House to begin the program. Under the proposed services agreement, Poverello House will provide the services at “Project Downtown Hope” from April 1, 2022, through June 30, 2024, for total compensation of $4,662,554.80 in ERF funds in accordance with the ERF application.
In the ERF application the City identified Fresno’s most dangerous and toxic encampment situated at the south end of the downtown civic center. The encampment encompasses approximately an 8 by 15 block area between Highway 41, Highway 99, and Fresno Street. At the time of the application, and to date, over 100 individuals were identified as experiencing unsheltered homelessness in this area.
Labeled “Project Downtown Hope”, the proposed services and housing options include transitioning 100 individuals off the street into 50 air conditioned and heated sleeping cabins making up a new “Village of Hope” community located near the San Benito and H Street portion of the Downtown Fresno Encampment. Partnering with Poverello House to provide the leadership, services, and community-building necessary for the Village of Hope emergency shelter to be a transformational first step off the streets for the unhoused in downtown Fresno. Given its success with its first Village of Hope, Poverello House was recognized by the City as uniquely qualified to provide the homeless services at the Project Downtown Hope and was included in the application to the state. Poverello House’s Village of Hope community will provide 24-hour staff, security, and navigation services to those with a bed in a sleeping cabin.
As a competitive grant applicant, the City demonstrated partnerships that will lead to efficient and effective implementation of the ERF Program include blending of funding sources. These include:
• The City preparing to invest over $1.3 million for the acquisition and placement of 50 sleeping cabins as a key shelter housing resource for the resolution of Fresno’s most significant encampment (Staff plan to return to Council at a future date for the approval of funds for this acquisition).
• The City’s Public Works Department will install the 28 streetlights that have sustained damage from the downtown encampment.
• The City will continue to fund and work with Poverello House's HOPE outreach team to engage compassionately and humanely with people experiencing homelessness.
• Poverello House provides a unique resource as the primary operator of “Village of Hope.”
• Caltrans will lease state property located near the encampment to Poverello House.
The City will also work with community-based partners to provide other housing options through its HomeKey projects and other facilities. Since the project will work within the coordinated entry system, individuals will be matched to available housing programs such as Rapid-Rehousing programs and permanent supportive housing projects.
Councilmember Arias has been exploring an alternative project for the ERF award that would result in the establishment of a tiny home village in lieu of a sleeping cabin village. In order to explore any alternative to the original proposed project, the State of California must approve a change in site and an extension of the award expenditure deadlines. Further, the alternative Councilmember Arias is exploring would require an estimated additional $3,800,000 to acquire the tiny homes, and other potential costs associated with the identification of a suitable site. Funds would need to be identified to account for these costs.
ENVIRONMENTAL FINDINGS
This item 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
The agreements will be funded through the City’s ERF allocations.
Attachments:
1. Resolution - ERF
2. Resolution - 60th Amendment to the AAR No. 2021-178
3. Agreement with Poverello House
4. ERF Award Letter
5. ERF Work Plan - City of Fresno
6. Work Plan Budget - City of Fresno