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 Planning and Development Department SUBJECT ..Title Approve the First Amendment to the Service Agreement with Fresno Economic Opportunities Commission (FEOC) to continue operating eight (8) youth bridge beds located at 1046 T Street, Fresno, CA 93721 (APN 466-043-09) in an amount not to exceed $504,413. This amendment is funded by the Homeless Housing, Assistance and Prevention (HHAP) program for the period of July 1, 2026, through June 30, 2028. (Bid File 12402933) (City Council District 3) ..Body RECOMMENDATION Staff recommends the City Council approve the First Amendment to the Service Agreement with FEOC to continue operating eight (8) youth bridge beds located at 1046 T Street, Fresno, CA 93721 (APN 466-043-09) and authorize the City Manager or designee, to sign all implementing agreements. The amended agreement will extend services from July 1, 2026, through June 30, 2028, for an amount not to exceed $504,413, funded by the Homeless Housing, Assistance, and Prevention (HHAP) Program. EXECUTIVE SUMMARY The City of Fresno currently has an agreement with FEOC for the operation of eight (8) youth bridge housing beds awarded through the procurement process under RFQ 12402933, released June 3, 2024. The RFQ allows for an initial two-year agreement with one optional two-year extension. The initial agreement covers the period from November 1, 2024, through June 30, 2026. This project serves homeless transitional aged youth (TAY) ages 18-24 by providing bridge housing beds for up to 6 months, offering a safe interim housing option while working toward permanent housing placement. The program equips TAY aged youth with tools and skills necessary to achieve stability and maintain long-term housing. Since the start of the initial agreement FEOC has proven to be an invaluable partner in addressing youth homelessness, consistently meeting performance goals and creating pathways to permanent housing. Considering these successes, the City proposes extending their agreement as permitted by the current agreement, for the term July 1, 2026, through June 30, 2028, and allocate $504,413 in additional HHAP funding to support continued operations. BACKGROUND California's Homeless Housing, Assistance, and Prevention (HHAP) program, established in 2019 under AB�101, provides flexible, non-competitive block grants to cities, counties, continuums of care, and tribes. Its purpose is to reduce homelessness through regional, evidence-based strategies that expand shelter capacity, prevent unsheltered homelessness, and deliver housing-focused services tailored to local needs. The City of Fresno received the following HHAP allocations: * February 2020: $6,158,246.18 (Round 1) * September 2021: $2,911,171 (Round 2) * January 2023: $7,524,257.15 (Round 3) * July 2023: $11,265,425.10 (Round 4) * October 2024: $13,096,671.82 (Round 5) HHAP funding must be utilized for specific eligible uses outlined below as well as set-aside a minimum of 10% of the allocation for youth eligible activities. Eligible uses of HHAP funds include: 1. Rapid Rehousing - Rental assistance and landlord incentives (e.g., security deposits, holding fees). 2. Operating Subsidies - Support for operations of affordable/supportive housing, emergency shelters, non-congregate shelters, interim or bridge housing, and navigation centers. 3. Street Outreach - Connecting individuals experiencing homelessness to housing and services. 4. Services Coordination - Workforce development, education, training, and other supports for housing stability. 5. Systems Support - Regional coordination to maintain homelessness response systems, especially for vulnerable populations. 6. Permanent Housing Delivery & Innovative Solutions - Development of permanent housing and hotel/motel conversions. 7. Prevention & Shelter Diversion - Crisis resolution, mediation, and light financial assistance to avoid shelter entry. 8. Navigation Centers & Emergency Shelters - Creating or operating centers and shelters with clear pathways to permanent housing. To obligate these funds, staff issued RFQ 12402933 on June 3, 2024, soliciting proposals for homeless youth services under the Operating Subsidies eligible use category for the youth set-aside. By July 26, 2024, deadline, seven proposals were received, five of which were deemed qualified. A selection panel comprised of representatives from the City's Planning and Community Development Department, including the Homeless Services, Housing Finance, and Housing Production divisions evaluated the proposals based on service delivery capacity, compliance with RFQ requirements, cost-effectiveness, demonstrated past performance, and relevant qualifications. Based on the evaluation, FEOC's proposal was selected as the most responsive and best aligned with the City's operational goals. On October 31, 2024, City Council approved Fresno Economic Opportunities Commission (FEOC) to operate eight (8) youth bridge beds at 1046 T Street, Fresno, CA (APN 466-043-09). Operations began under this agreement on November 1, 2024. Since then, FEOC has demonstrated strong performance as a partner, effectively managing shelter operations and supporting youth experiencing homelessness in their transition to permanent housing. Based on this success, staff recommends that the City Council approve an amendment to FEOC's agreement, allowable under the current terms, to extend the operations of the eight (8) youth bridge beds at 1046 T Street, Fresno, CA (APN 466-043-09) for an amount not to exceed $504,413, funded through HHAP. ENVIRONMENTAL FINDINGS This is not a project as defined by the California Environmental Quality Act. LOCAL PREFERENCE Local preference is not applicable. FISCAL IMPACT This agreement will have no general fund impact and will be funded through State funds. Attachment: First Amendment with Fresno EOC - Youth Bridge Housing