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 the American Rescue Plan Act HOME Investment Partnerships Program (HOME-ARP) Grant agreement between the City of Fresno and WestCare California Inc. (WestCare) in the amount of $445,000 to provide homeless prevention services, short- and medium-term rental assistance, and case management. ..Body RECOMMENDATION Staff recommends the City Council approve the agreement between the City of Fresno and WestCare to provide people who are homeless or at risk of homelessness, assistance to obtain and/or maintain housing and authorize the City Manager or designee to sign all necessary implementing agreements as approved to form by the City Attorney. EXECUTIVE SUMMARY The City Council previously approved the allocation of HOME-ARP funding for Supportive Services to assist individuals who are homeless or at risk of homelessness, and other vulnerable populations. The proposed agreement would provide $445,000 in HOME-ARP funds for the term of January 01, 2024 through December 31, 2024, for homeless prevention services short- and medium-term rental assistance, and case management. BACKGROUND On September 23, 2021 the City of Fresno received notification from the Department of Housing and Urban Development (HUD) that we would be receiving HOME-ARP funding in the amount of $11,922,873 to assist individuals who are homeless or at risk of homelessness, and other vulnerable populations by providing housing, rental assistance, supportive services, and non-congregate shelter to reduce homelessness and increase housing stability. On May 26, 2022, City Council approved a Substantial Amendment to the City's 2021 Annual Action Plan allocating $3,111,481 of HOME-ARP for supportive services. On September 5, 2023, the City of Fresno released the HOME-ARP Supportive Services NOFA which closed on October 16, 2023. This NOFA made $445,000 available to the community to provide the requested Supportive Services. The City received four applications from the following Nonprofit 501(c)(3) Organizations. * WestCare to provide homeless prevention services, short- and medium-term rental assistance, and case management. * Marjaree Mason Center to provide supportive services such as transportation, housing assistance, counseling, and 24/7 hotline and crisis response. * Resiliency Center of Fresno in partnership with the Fresno Mission to provide mental health and substance abuse treatment. * Gracebound to provide supportive services such as transportation, showers services, laundry services, housing counseling, and credit and budgeting counseling. All four applications were determined to be complete and fully responsive to the criteria and questions asked. The applications were reviewed by an evaluation committee consisting of three staff members from the Homeless Services and Community Development Divisions, one member of the Fresno Madera County Continuum of Care Lived Experience Advisory Board, and one representative from a non-profit homeless services provider. After review and consideration, the evaluation committee recommended that the City of Fresno award WestCare the full amount of their application for $445,000. It was determined by the evaluation committee that the other proposals did not provide the same level of direct benefit to the community and were, therefore, not recommended for funding. WestCare is proposing an expansion to their existing Project Unite Program. If approved, the HOME-ARP funding would expand services to provide rental assistance to an additional 35 households, security deposits to 8 households, utility assistance to 17 households, moving expenses for 8 households, and application fees for 24 households. WestCare will also provide case management based on individualized service plans for housing and support services. The Case Manager will provide comprehensive services based on the client's unique needs, addressing and resolving barriers to permanent housing. This is done to prepare the client to maintain housing after services have ended. The City has previously funded WestCare's Project Unite with the Emergency Solutions Grant (ESG) funds. During the period of July 01, 2022- October 31, 2023, WestCare reported assisting 21 households consisting of 58 individuals. Of the 58 individuals assisted 28 were under the age of 18. WestCare also reported assisting 32 households consisting of 47 individuals with rental assistance. Of the 47 individuals 8 were under the age of 18. WestCare has proven their ability to expend granted funds in a timely manner through direct services to clients. During their Program Year 2021 ESG agreement WestCare was able to expand their homeless prevention services by concentrating on housing stabilization services to keep families housed. This greatly assisted the City of Fresno in meeting its Program Year 2021 ESG expenditure deadline. Recognizing the demand for homeless prevention services and the ongoing need for rental assistance for Fresno Residents Staff recommends approval of the HOME-ARP agreement between the City and WestCare in the amount of $445,000 to fund Homeless Prevention and Short- and Medium-Term Rental assistance from January 01, 2024, through December 31, 2024. ENVIRONMENTAL FINDINGS This is not a project for purposes of CEQA pursuant to CEQA guidelines Section 15378. These plans, strategies and studies are Categorically Excluded Not Subject to Section 58.5 Pursuant to 24 CFR Part 58.34(a) and 58.35(b) under HUD NEPA Requirements (24 CFR 58.35 (b) (2) (3)). LOCAL PREFERENCE Local preference is not applicable because of the use of federal funding. FISCAL IMPACT There is no impact on the City's General Fund. This agreement will be funded through the City's HOME-ARP allocations. Attachment: HOME-ARP Supportive Services Agreement with WestCare California Inc.