Agenda Item Wording:
title
Accept and Appropriate Grant Funding - Accept and appropriate $3,103,963 of Encampment Resolution Funding Round 3 Window 3 for operational and rapid rehousing funds for the Visalia Navigation Center on N. Court to provide interim shelter, and a combination of capital and operational funds for the Sequoia Village on S. Mooney to provide permanent supportive housing for people living in targeted encampments.
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Deadline for Action: 5/19/2025
Submitting Department: Finance and Technology Services
Contact Name and Phone Number:
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 Council:
• Accept and appropriate $3,103,963 in Encampment Resolution Funding (ERF), Round 3 Window 3 which was awarded on December 23, 2024. These funds will be used for operational and rapid rehousing funds for the Visalia Navigation Center in the amount of $1,603,963 million, and assistance for the Sequoia Village, a permanent supportive housing project, for capital and operational funds including rental subsidy gap funds and on-site case management for $1.5 million;
• Authorize the City Manager to execute the necessary grant agreements; and
• Authorize the City Manager to enter into contracts with Community Services Employment Training (CSET) for $1.6 million for the Navigation Center, Mooney Sequoia LP for $644,400 for the Sequoia Village capital, and Elevate Community Services for $855,600 the Sequoia Village operational funds.
Summary:
The Encampment Resolution Funding (ERF) program is a competitive grant program through the California Department of Housing and Community Development (HCD) available to assist local jurisdictions to provide support to people experiencing homelessness in targeted encampments and place them into permanent housing. On December 23, 2024, the City was notified of an award of ERF Round 3 window 3 funds in the amount of $3,103,963. This staff report is to accept and appropriate $3,103,963 of ERF round 3 window 3 which includes $1.6 million for the Visalia Navigation Center for operational and rapid rehousing to provide interim housing, and $1.5 million for Sequoia Village for capital and operational funds to provide permanent supportive housing for people living in targeted encampments.
Background Discussion:
The Encampment Resolution Funding (ERF) program is a competitive grant program through the California Department of Housing and Community Development (HCD) available to assist local jurisdictions to provide services and support to people experiencing homelessness in targeted encampments that results in meaningful paths to safe and stable housing. Eligible applicants include cities, counties, and Continuums of Care (CoCs). The Encampment Resolution Funding (ERF) Round 3 competitive Notice of Funding Availability (NOFA) included three windows to apply for funding. Since these statewide funds are highly competitive, the City applied to all three windows in hopes of being awarded at least once. Fortunately, the City of Visalia was awarded two out of three windows.
On December 4, 2023, Council approved an application for Encampment Resolution Funding (ERF), Round 3 funds to provide supporting both the Visalia Navigation Center, in partnership with Community Services Employment & Training (CSET) to provide interim shelter, and a Permanent Supportive Housing project, the Majestic Gardens to provide permanent housing for persons living in targeted encampments located on the Highway 198 and State Route 63 on N. Dinuba Blvd within the City of Visalia.
On September 27, 2024, the City was notified of an award of ERF Round 3 window 2 funds in the amount of $3,000,000. These ERF 3 window 2 funds included $1.5 million for the Visalia Navigation Center first year operational funds and rapid rehousing funds, and $1.5 million for the Majestic Garden project capital and operational funds for on-site staffing and rental subsidies.
On December 23, 2024, the City was notified of an award of ERF Round 3 window 3 funds in the amount of $3,103,963. Since the grant application for windows 2 and 3 were similar, HCD requested the city to provide a revised ERF-3 window 3 grant application with distinct goals and outcomes. As a result, the ERF 3 Window 3 grant application was revised to include $1.6 million for the Visalia Navigation Center second year operational funds, and rapid rehousing funds including rental subsidies, and $1.5 million for the Sequoia Village project that includes $644,400 for capital (CP0479) with Mooney Sequoia LP, and $855,600 for operational funding including on-site staffing and rental subsidies with Elevate Community Services as shown below in Table 1: ERF Round 3 Window 3 - Funding Summary. Appropriation of these funds is required to complete the budget process for the Visalia Navigation Center and Sequoia Village projects. This action will allow proper allocation of project expenses for this approved funding source.
ERF Round 3 Window 3 Activities:
• The Visalia Navigation Center
o The Visalia Navigation Center ERF Round 3 funds will provide $1,603,963 to CSET, the on-site administrator, for the second year of operational and rapid rehousing funds for the Visalia Navigation Center. These funds will provide needed second year operational costs for the Visalia Navigation Center, including case management, housing navigators, and client meal assistance costs. The Visalia Navigation Center ERF Round 3 funds will also provide essential rapid rehousing funds including 12-months of rental subsidies to help new tenants secure a 1-year lease agreement.
• Sequoia Village
o Capital (CP0479) - The Majestic Gardens ERF Round 3 funds will provide $644,400 to Mooney Sequoia LP for capital improvements needed including installation of a fence at the property, and security cameras to ensure safety of residents and the surrounding area. Capital improvements also include floor repairs, painting, railing repaint, plumbing fixture repairs, asphalt repairs, landscaping, laundry room rehabilitation, and rehabilitation of 12-units.
o Operational - The Sequoia Village ERF Round 3 Window 3 funds will also provide $855,600 to Elevate Community Services, the non-profit operating partner, for two-years of operational funds for the Sequoia Village project. These funds will also provide two-years of rental subsidies for 19 units at Sequoia Village. These funds will include on-site enhanced case management and security services to ensure clients are transitioning into permanent housing smoothly, and safely.
Fiscal Impact:
Approval of this item will appropriate $3,103,963 in Encampment Resolution Funding (ERF), Round 3 window 3 funds that includes $1,603,963 for operational funds for the Visalia Navigation Center, $644,400 for capital development (CP0479), and $855,600 for operational funds for the Sequoia Village project, as shown above in Table 1: ERF Round 3 Window 3 - Funding Summary. No General Fund money is included or requested for this grant.
Prior Council Action: December 4, 2023 (23-0424) - Council approved and ERF, Round 3 application to be split between the Visalia Navigation Center and a permanent supportive housing project to provide interim shelter and permanent housing respectively to persons living in targeted encampments with the City of Visalia.
Other: None.
Alternatives: None recommended.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move that Council:
• Accept and appropriate $3,103,963 in Encampment Resolution Funding for the Visalia Navigation Center in the amount of $1,603,963 million, and assistance for the Sequoia Village for $1.5 million;
• Authorize the City Manager to execute the necessary grant agreements; and
• Authorize the City Manager to enter into contracts with Community Services Employment Training (CSET) for $1.6 million for the Navigation Center, Mooney Sequoia LP for $644,400 for the Sequoia Village capital, and Elevate Community Services for $855,600 the Sequoia Village operational funding.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments:
● Attachment A - ERF Round 3 Window 3 Award Letter
● Attachment B - Draft CSET Contract Agreement
● Attachment C - Draft Mooney Sequoia LP Contract Agreement
● Attachment D - Draft Elevate Community Services Contract Agreement