REPORT TO THE CITY COUNCIL FROM: JENNIFER CLARK, Director Planning and Development Department PHIL SKEI, Assistant Director Planning and Development Department BY: ISSIAHS GARCIA, Management Analyst Homeless Services Division SUBJECT ..Title Actions pertaining to the Encampment Resolution Fund round 5 (ERF-5) program. 1. RESOLUTION - Authorizing an application for funding directly from the California Department of Housing and Community Development (HCD) as an applicant for the fifth round of the Encampment Resolution Funding (ERF) program for actionable, person-centered local proposals that resolve the experience of unsheltered homelessness for people residing in encampments and authorizing the City Manager to sign all required implementing documents. 2. Approve a Memorandum of Understanding committing the City and County of Fresno to participate in and comply with the services outlined in the ERF-5 application. ..Body RECOMMENDATION Staff recommends the City Council adopt the Resolution to apply for funding from HCD as an applicant for the ERF-5 and authorize the City Manager to sign all required implementing documents and approve the MOU to comply with the services outlined in the ERF-5 application. EXECUTIVE SUMMARY The City of Fresno (City) is eligible to apply for ERF-5 funding to address the safety and wellness of people within a designated encampments, resolve critical encampment concerns, and transition individuals into interim shelter with clear pathways to permanent housing or directly into permanent housing, using data-informed, non-punitive, low-barrier, person-centered, Housing First, and coordinated approaches. The City must submit a competitive application to be considered for an award. HCD requires all eligible applicants to submit an application for ERF-5 funding no later than June 30, 2026. The City's application for ERF-5 is strengthened through having a MOU with the County of Fresno that demonstrates our commitment to collaborating with local partners to resolve encampments within the encampment area. BACKGROUND The ERF Program was initially authorized in 2021 through Assembly Bill (AB) 140 (Chapter 111, Statutes of 2021), which allocated $50 million for what would become the first round of funding. SB 197 (Chapter 70, Statutes of 2022) amended the program and AB 178 (Chapter 45, Statues of 2022) allocated an additional $300 million for Round 2 of ERF funding. Senate Bill 197 (Chapter 70, Statutes of 2022) authorized ERF-3-R, which allocated $400 million for a third round of funding. The $400 million for this third round was appropriated by SB 101 (Chapter 12, Statue of 2023) Cal ICH has indicated that when determining grant awards, funding shall be prioritized for: * Local Jurisdictions with proposals that address encampments on state rights-of-way and that meet priority criteria established by Cal ICH in consultation with the Department of Transportation. * Jurisdictions that can demonstrate a commitment to cross-systems collaborations with state and federal entities, and innovative efforts to resolve encampment issues, while focusing on protecting the health and well-being of the individuals living in those encampments. * Awarding grants that, to the extent feasible, reflect a range of applicants that represent the diversity of communities across the state, including rural, urban, and suburban communities. Chapter 7 (commencing with Section 50250) of Part 1 of Division 31 of the Health and Safety Code authorized Round 5 of ERF funding. $100 million for ERF Round 5 was appropriated by Statutes of 2025, chapter 5, section 86 (the "2025 Budget Act"), which was signed into law by Governor Gavin Newsom on June 27, 2025. $93 million is being made available within the ERF-5 NOFA. To underscore our commitment to collaborating with local partners on the ERF-5 application, The City entered into an MOU with the County of Fresno. This MOU commits both parties to comply with the services outlined in the ERF-5 application. 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 resolution will have no general fund impact and will be funded through State funds. Attachments: ERF-5 NOFA ERF-5 Resolution_MOU and Application attached