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 Homeless Services Division SUBJECT ..Title Approve the First Amendment to the Service Agreement with Community Health Improvement Partners (CHIP) for continued operations of the Encampment Resolution Fund Round-3 (ERF-3R) Independent Living Association-Rapid Rehousing (ILA-RR) program extending the term of the agreement through June 30, 2027, with no additional funds. (RFQ 12401871) ..Body RECOMMENDATION Staff recommends that the City Council approve the First Amendment to the service agreement with CHIP, for continued administration of the ERF-3R Independent Living Association- Rapid Rehousing (ILA-RR) program. The First Amendment extends the term of the agreement from November 1, 2026, through June 30, 2027, with no additional funds. (RFQ 12401871) EXECUTIVE SUMMARY The proposed First Amendment to the Rapid Rehousing Agreement with CHIP seeks to extend the agreement's term, allowing continued delivery of rapid rehousing and case management services for individuals experiencing homelessness in Fresno. This extension, which does not authorize additional funding, is designed to ensure that all program activities, including rental subsidies and supportive services, can be completed in alignment with the City's strategic goals for homelessness response and the requirements of the ERF-3R program. The amendment also incorporates updated operational details, such as a revised ramp-down schedule and enhanced reporting to facilitate a smooth transition for program participants and maintain compliance. Approval of this amendment will enable the City to maximize the impact of existing resources and uphold its commitment to supporting vulnerable residents through evidence-based housing interventions. BACKGROUND The City of Fresno entered into an agreement with CHIP on November 1, 2024, to administer the ILA-RR program, which is funded through the ERF-3R initiative. The ILA-RR program was established to provide rapid rehousing and case management services for individuals experiencing homelessness, specifically targeting those identified through the City's encampment resolution projects and prioritized via the Fresno Madera Continuum of Care Coordinated Entry System (CES) in collaboration with partner agencies. The original agreement was structured to operate for a minimum of two years, with all program funds required to be fully expended by October 31, 2026, and included a total not-to-exceed amount of $2,882,282.63, with no provision for additional funding. The program's design leverages CHIP's established expertise in administering independent living networks and incorporates a housing-first approach, with a focus on health equity, cultural competence, and inclusive service delivery. The ILA-RR model integrates housing navigation, individualized case management, and partnerships with specialized subcontractors for efficient management of rental subsidies and household agreements. CHIP's leadership and staff bring significant experience in addressing social determinants of health and have demonstrated capacity to coordinate complex, multi-agency projects across the region. The First Amendment to the agreement was initiated to provide the additional time needed to complete all program activities and ensure a smooth ramp-down and transition for participants. CHIP has demonstrated strong stewardship of program funds and, through careful resource management, will have remaining funds available at the end of the current term. The amendment extends the operational period from November 1, 2026, through June 30, 2027, without authorizing any additional funding, and replaces the original scope of services and budget with updated exhibits reflecting revised protocols, reporting schedules, and ramp-down procedures. This extension aligns with the City's practice of maximizing existing resources, meeting regulatory requirements, and ensuring responsible use of public funds. Further, this amendment reflects the City's continued commitment to responsible program management and thoughtful stewardship of public resources. By extending the agreement without adding funds, the City and CHIP are ensuring that remaining ERF-3R resources are used efficiently, program activities are completed with fidelity, and participants experience a stable and well-supported transition as services wind down. The proposed extension aligns with established City practices, adheres to funding requirements, and supports a measured, accountable closeout of the program. ENVIRONMENTAL FINDINGS This is not a project as defined by the California Environmental Quality Act. LOCAL PREFERENCE Local preference is not applicable because of the use of State funds. FISCAL IMPACT This agreement will have no impact on the general fund, as it utilizes existing State grant funds and does not include an increase in the amount of funds provided. Attachments: First Amendment