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 Approve a Service Agreement with Valley Teen Ranch to provide permanent supportive housing to twenty-five (25) Transitional Aged Youth (TAY) ages 18-24 at Sierra Crossing, located at 5575 W. Sierra Avenue (APN 506-130-04S). The agreement term is from September 1, 2026, through August 31, 2028, in an amount not to exceed $523,534.00, and is funded through the Homeless Housing, Assistance, and Prevention grant program. (Council District 2) (Bid File No. 12402933) ..Body RECOMMENDATION Staff recommends that the City Council approve the Service Agreement with Valley Teen Ranch to provide permanent supportive housing to twenty-five (25) Transitional Aged Youth at Sierra Crossing, located at 5575 W. Sierra Avenue (APN 506-130-04S) covering the period from September 1, 2026, through August 31, 2028, in an amount not to exceed $523,534.00 under the HHAP program, and authorize the City Manager, or designee to sign all implementing agreements. EXECUTIVE SUMMARY The City of Fresno is seeking to award funding for homeless youth services to Valley Teen Ranch as part of HHAP program requirements. Staff issued a Request for Qualifications (RFQ 12402933) on June 3, 2024, resulting in the submission of seven (7) proposals; five (5) were deemed qualified. Based on the evaluation completed by the selection panel, staff recommends $523,534.00 be awarded to Valley Teen Ranch to provide permanent supportive housing to twenty-five (25) Transitional Aged Youth at Sierra Crossing. The agreement is from September 1, 2026 through August 31, 2028. 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: $2,911,171.00 (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, Valley Teen Ranch's proposal was selected as the most responsive and best aligned with the City's operational goals for permanent supportive housing for TAY ages 18-24. Staff recommends that the City Council approve the agreement with Valley Teen Ranch to provide permanent supportive for twenty-five (25) youth at Sierra Crossing, located at 5575 W. Sierra Avenue (APN 506-130-04S) for an amount not to exceed $523,534.00, funded through HHAP. ENVIRONMENTAL FINDINGS This item 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 grant funds. Attachment: Valley Teen Ranch Service Agreement