REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHIL SKEI, Assistant Director Planning and Development Department BY: KAREN JENKS, Housing & Neighborhood Revitalization Manager Community Development Division SUBJECT ..Title ***RESOLUTION - Authorizing the acceptance of grant funding from the United States Department of Housing and Urban Development Economic Development Initiative, Community Project Funding in the amount of $1,000,000 for Fresno's Tiny Homes Housing Solutions Project (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends the City Council adopt the Resolution authorizing acceptance of funds from the Community Project Funding program for the Fresno's Tiny Homes Housing Solutions Project. EXECUTIVE SUMMARY In April 2022, in response to the Congressionally directed spending under the Economic Development Initiative, Community Project Funding (CPF) the City submitted applications for an initiative titled "Fresno's Tiny Homes Housing Solutions Project." Through the initiative the City would fund the construction of tiny homes as an affordable housing solution for homeless individuals transferring out of shelters. The City's project was selected for an award of $1,000,000 in CPF funding. Adopting the Resolution authorizes acceptance of the funds and authorizes the City Manager, or designee, to submit and sign all documents necessary for acceptance of the grant funding. BACKGROUND The Consolidated Appropriations Act, 2023 contained $2.9 billion in Economic Development Initiative funding for the purpose of making CPF funding available through Congressionally directed grants to provide investment in a wide variety of projects including housing. In response, the City submitted requests for $4 million to Senator Alex Padilla's and Representative Jim Costa's offices for its initiative "Fresno's Tiny Homes Housing Solutions Project" to purchase tiny homes to provide essential permanent affordable housing units to address the critical bottleneck in the City's housing continuum. The City was selected to receive $1 million in CPF funds for its project. The CPF grants will be administered by the Congressional Grants Division of the U.S. Department of Housing and Urban Development (HUD). The City must enter into a CPF Grant Agreement with HUD to participate in the program and receive funds. The Resolution authorizes the City to accept the funds and authorizes the City Manager, or designee, to submit and sign all documents necessary for acceptance of the funds, which includes the CPF Grant Agreement. Adoption of the Resolution will allow the City to accept $1 million in CPF funds to purchase tiny homes to provide an affordable permanent housing solution to help homeless individuals transition out of shelters. Project specific agreements will be brought to the Council for approval at a future date after the submission and approval of all necessary documents and the completion of the appropriate CEQA and NEPA reviews. ENVIRONMENTAL FINDINGS This Resolution is not a project for purposes of CEQA pursuant to CEQA guidelines Section 15378 and is an exempt activity under HUD NEPA Requirements (24 CFR 58.34 (3)). LOCAL PREFERENCE Local preference is not applicable because of the use of federal funding. FISCAL IMPACT Adoption of the Resolution will allow the City to receive $1,000,000 of new grant funding for the construction of tiny homes to provide an affordable permanent housing solution for homeless individuals transferring out of shelters. Attachment: Resolution - CPF Acceptance