REPORT TO THE CITY COUNCIL FROM: JENNIFER K. CLARK, AICP, Director Planning and Development Department PHILIP SKEI, Assistant Director Planning and Development Department BY: JENNIFER DAVIS, Senior Management Analyst Housing Finance Division, Planning and Development Department SUBJECT ..Title Approve a Second Amendment to the State and Local Fiscal Recovery Funds (SLFRF) Grant Agreement between the City of Fresno, Fresno Rescue Mission, Inc., and Fresno City Center, Inc., to extend the scope of services' project schedule to May 15, 2027, for the development of a new shelter facility for Transitional Age Youth (Council District 4) ..Body RECOMMENDATION Staff recommend that the City Council approve a Second Amendment to the State and Local Fiscal Recovery Funds (SLFRF) Grant Agreement between the City of Fresno, Fresno Rescue Mission, Inc., and Fresno City Center, Inc., to extend the project schedule for the development of a new shelter facility for Transitional Age Youth. EXECUTIVE SUMMARY On December 5, 2024, the City Council approved a State and Local Fiscal Recovery Funds (SLFRF) Grant Agreement in the amount of $1,500,000 with Fresno Rescue Mission, Inc. and Fresno City Center, Inc. (Developer) for the development of a new shelter facility serving Transitional Age Youth (TAY), ages 18 to 24 years, who are experiencing or at risk of homelessness. A First Amendment to the SLFRF Grant Agreement was approved by the City Council on October 16, 2025, which extended the project schedule to May 15, 2027, due to delays in the architectural and design phase. Approving a Second Amendment to the SLFRF Grant Agreement between the City of Fresno and the Developer will revise the Scope of Services project schedule to extend the project schedule to begin construction on August 15, 2026, complete construction by December 30, 2027, and achieve occupancy by January 30, 2028. This modification is permitted under the original Agreement and will not delay the required full expenditure of funds by December 31, 2026. BACKGROUND The City received State and Local Fiscal Recovery Funds (SLFRF) from the U.S. Department of the Treasury under the American Rescue Plan Act (Pub. L. 117-2) (the Act). The City elected to use a portion of this allocation to support the COVID-19 Public Health and Economic Response by addressing impacts on households and communities. This includes reducing homelessness through emergency housing assistance and temporary residences for individuals experiencing homelessness-an eligible use of funds under the Act. On October 28, 2024, the City's Housing Finance Division released a Notice of Funding Availability (NOFA) to solicit proposals for the development of a new Transitional Age Youth (TAY) shelter facility. In response, the City received multiple applications, which were evaluated by a selection committee consisting of representatives from the City's Homeless Services, Housing Finance, and Housing Production divisions. After review, the committee recommended funding the proposal submitted by Fresno Rescue Mission for the development of the Fresno Mission Youth Center. The project aims to reduce homelessness among vulnerable youth by providing safe housing and wraparound services. The center will be located on property owned by the Developer at 2111 East Dakota Avenue, Fresno, California (APN 436-270-15). The total estimated project cost is $13,650,000, with funding provided through private loans, donations, $1,500,000 in City SLFRF funds, and New Market Tax Credits. On December 5, 2024, the City Council approved an SLFRF Grant Agreement (Agreement) in the amount of $1,500,000 with Fresno Rescue Mission, Inc. and Fresno City Center, Inc. (Developer), for the development of a shelter facility serving Transitional Age Youth (TAY) ages 18 to 24 who are experiencing or at risk of homelessness. The City's contribution supports predevelopment and construction costs. The project was originally scheduled to begin construction on August 1, 2025, with completion expected by November 1, 2026, full occupancy by December 1, 2026, and full expenditure of funds by December 31, 2026. On October 16, 2025, the City Council approved a First Amendment to the Agreement, extending the project timeline due to delays in the architectural and design phase. The revised schedule reflected architectural drawings submitted to the City for approval on October 1, 2025, and set a construction start date of March 1, 2026; construction completion by May 1, 2027; and occupancy of TAY clients by May 15, 2027. In March 2026, the Developer requested an additional extension due to further delays in the architectural and design phase. The Second Amendment to the Agreement will extend the project schedule to begin construction on August 15, 2026; complete construction by December 30, 2027; and achieve occupancy by January 30, 2028. This modification is permitted under the original Agreement and will not delay the required full expenditure of funds by December 31, 2026. Once completed, the Fresno Mission Youth Center will support key City goals outlined in the Housing Element of the 2035 General Plan, the 2025-2029 Consolidated Plan, and the One Fresno Housing Strategy by providing transitional housing and support services for young adults experiencing or at risk of homelessness. The project will focus on promoting housing stability and will offer case management, job training, and life-skills development, with priority given to TAY clients who are currently or were previously in foster care or the juvenile supervision/probation system. ENVIRONMENTAL FINDINGS Staff determined that this project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) Guidelines pursuant to Section 15332/Class 32 (Infill Development), meeting the following conditions: a) The project is consistent with applicable general plan designation and applicable zoning designation and regulations. b) The project occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses. c) The project has no value as habitat for endangered, rare or threatened species. d) Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality. Furthermore, staff determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project. On December 5, 2024, City Council adopted a finding of Categorical Exemption pursuant to Section 15332/Class 32 (Infill Development) of CEQA Guidelines. LOCAL PREFERENCE Local preference was not considered because this action does not include a bid or award of a construction or services contract. FISCAL IMPACT There is no impact to the City's General Fund. The $1,500,000 grant is funded through the State and Local Fiscal Recovery Funds appropriated to the Planning and Development Department as part of its FY23/24 Budget. Attachments: Second Amendment to SLFRF Grant Agreement for TAY Shelter First Amendment to SLFRF Grant Agreement for TAY Shelter SLFRF Grant Agreement for TAY Shelter