Agenda Item Wording:
title
Award a Contract to Administer a Seasonal Low-Barrier Emergency Shelter - Award a contract to administer a seasonal low-barrier emergency shelter to the Visalia Homeless Center and authorize staff to negotiate and execute a 1-year agreement not to exceed 15% of Permanent Local Housing Allocation annual allocation estimated at $90,000 annually with 4 available extensions.
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Prepared by:
Margie Perez, Housing Specialist, margie.perez@visalia.city, (559) 713-4460;
Melody Murch, Assistant Finance Director, melody.murch@visalia.city, (559) 713-4379; Renee Nagel, Finance Director, renee.nagel@visalia.city, (559) 713-4375
Department Recommendation:
Staff recommends that the Council:
1. Award RFP-25-26-04 to the Visalia Homeless Center (VHC);
2. Authorize the City Manager or their designee to negotiate and execute a 1-year agreement not to exceed 15% of the annual allocation of Permanent Local Housing Allocation (PLHA) funding estimated at $90,000 annually, with 4 available 1-year renewals for a possible 5-year total of $450,000, contingent upon annual PLHA grant funding toward the operation of a seasonal low-barrier emergency shelter.
Summary:
A Notice of Funding Availability (NOFA) (RFP-25-26-04) was released seeking a qualified non-profit organization to operate a seasonal low-barrier emergency shelter during the winter months for Fiscal Year (FY) 2025-26, with the opportunity to extend up to four (4) additional years upon mutual agreement. In response, the City received only one (1) application from the Visalia Homeless Center (VHC). Staff recommends awarding RFP-25-26-04 to the Visalia Homeless Center to administer a seasonal winter low-barrier emergency shelter.
The proposed funding is 15% of the City’s annual Permanent Local Housing Allocation (PLHA) budget for up to five (5) years to be used for operational costs of a seasonal low-barrier emergency shelter. The City of Visalia anticipates the availability of $90,000 annually in PLHA funding, contingent upon the availability of annual PLHA grant funding. Anticipated estimated funding detail is shown below in Table 1: Five-Year Estimated Funding Summary.
Due to delays at the State level, the FY 2025-26 PLHA NOFA has not yet been released. The application for these PLHA funds is not competitive, and the City must only comply with State requirements to receive their allocation of this funding. Staff will prepare and submit the necessary application for the FY 2025-26 PLHA funds once the NOFA is released by the State. Based upon the current December 31, 2025, expected release date of the NOFA, funds are projected to be received in the late summer of 2026. The PLHA account currently has cashflow available to fund the Warming Center, and the fund will be replenished once the 2025-26 funds are received.
Background Discussion:
The Request for Proposals: In anticipation of receiving the 2025-26 allocation of the PLHA funding, a NOFA was released on August 8, 2025, through September 10, 2025, seeking a qualified non-profit organization to operate a seasonal low-barrier emergency shelter during the winter months for fiscal year 2025-26, with the opportunity to extend up to four (4) additional years upon mutual agreement. In response, the City received only one (1) application from the VHC, for the NOFA (RFP-25-26-04), which offered funding to be included in the next PLHA 5-Year Plan for a seasonal low-barrier emergency shelter. The City of Visalia evaluation committee reviewed and scored the application. Based upon overall scores, and the VHC’s experience in administering a seasonal low-barrier emergency shelter, the evaluation committee recommends to award RFP-25-26-04 for the operation of a seasonal low-barrier emergency shelter to the VHC.
The next PLHA 5-Year plan for 2025 through 2030 will be submitted to Council after the State releases the 2025-26 PLHA NOFA, which is expected to occur no later than December 31, 2025. Approval of this proposed contract will commit 15% of the PLHA allocation received to funding a seasonal low-barrier emergency shelter, in each year of the next PLHA 5-Year plan.
The Organization: The VHC has 10 years of experience operating a seasonal low-barrier emergency shelter within the City of Visalia. The VHC’s primary funding for the past four years has been the City’s Permanent Local Housing Allocation (PLHA) funds and in prior years it has also received Homeless Emergency Assistance Program (HEAP) state grant funds administered by the Kings/Tulare Homeless Alliance. The VHC has all the necessary supplies and furniture on hand to quickly begin project implementation. The organization has a long-standing history of support from various partner organizations, such as, the Kings Tulare Homeless Alliance and Tulare County Health and Human Services. VHC also has a large number of returning volunteers to assist with the operation of a warming center. VHC will be responsible for participating in the Coordinated Entry System (CES) and entering client data into the Homeless Management Information System (HMIS). The seasonal emergency shelter has also been the first point of interaction for many people experiencing homelessness to begin the process for housing placement through the CES.
PLHA Funding: The PLHA Program was created by California housing legislation passed in 2017 to address the shortage of affordable housing for households at or below 60% Area Median Income. This program receives 70% of the revenue generated by a $75 recording fee on real estate documents. The City receives PLHA funding from the California Department of Housing and Community Development (HCD) based upon the allocation process established by HUD for CDBG funding in the State of California. Eligible uses of PLHA funds include assisting homeless and at-risk of homeless persons with rapid rehousing, rental assistance, case management, operational costs of emergency shelters and new construction, rehabilitation, and preservation of permanent and transitional housing. This funding requires a Housing First approach to shelter operation in accordance with CA State law.
Proposed Funding: The proposed funding for this contract is 15% of the City’s annual Permanent Local Housing Allocation (PLHA) budget for up to five (5) years for operational costs of a seasonal low-barrier emergency shelter. The City of Visalia anticipates the availability of $90,000 annually in PLHA funding for an estimated 5-year total of $450,000, contingent upon annual PLHA grant funding. PLHA funding will vary year-to-year, as funding is dependent on real estate transactions with fluctuating activity. The City provided the Warming Center with a total of $455,837 in PLHA funding for the prior 4-year contract agreement during FY 2021/22 through FY 2024/25.
Estimated 5-year funding detail is shown below in Table 1: Five-Year Estimated Funding Summary. 15% of any increase or decrease of the actual FY 2025-26 PLHA allocation will be directed to the FY 2025-26 Warming Center’s 15% budget.
FY 2025-26 PLHA Allocation: The FY 2025-26 PLHA NOFA and allocation has been delayed at the State level and is expected to be released by the end of this calendar year. As a result, the FY 2025-26 PLHA funds are expected to be received in the late summer of 2026. The PLHA account currently has cashflow to cover the allocation of the proposed $90,000 to the Warming Center. Any shortfall in the funding actually received in the 2025-26 PLHA allocation will become an adjustment to the following fiscal year contract for operation of the emergency shelter.
Year-Round Drop-In Center: The contract to be negotiated will stipulate that if a year-round low-barrier drop-in center is developed, and becomes operational, during the next 5-year PLHA plan, the Warming Center’s PLHA funding will be redirected to the operation of the year-round drop-in center.
Fiscal Impact: Approval of the item will appropriate 15% of the FY 2025-2026 PLHA annual allocation estimated at $90,000 for operation of the FY 2025-26 seasonal warming center. Approval of this item will also commit 15% in each year of the remaining 4-year PLHA funding, contingent upon receipt. Annual appropriations will only occur with the approval of each annual PLHA contract award by the California Department of Housing and Community Development (HCD). The $90,000 to be allocated for the current 2025-26 program year will use cash flow available in the PLHA fund which will be reimbursed to the fund upon receipt of the 2025-26 allocation, projected to be received in late summer 2026. No General Fund money is requested for this contract.
Prior Council Action: September 20, 2021 - Award RFP-20-21-45 to the Visalia Homeless Center for a 4-year contract agreement to administer a low-barrier warming center.
Other: None
Alternatives: None recommended.
Recommended Motion (and Alternative Motions if expected):
recommendation
Staff recommends that the Council:
1. Award RFP-25-26-04 to the Visalia Homeless Center (VHC);
2. Authorize the City Manager or their designee to negotiate and execute a 1-year agreement not to exceed 15% of the annual allocation of Permanent Local Housing Allocation (PLHA) funding estimated at $90,000 annually with 4 available 1-year renewals for a possible 5-year total of $450,000, contingent upon annual PLHA grant funding toward the operation of a seasonal low-barrier emergency shelter.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 11/17/2025
Attachments: ●Attachment A - Visalia Homeless Center Application; ●Attachment B - Draft PLHA Contract Agreement.