Title
[Contract Amendment] Professional Services Agreement for Landlord Engagement and Housing Stabilization Case Management Services with Community HealthWorks for the Street to Housing Pilot Program
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FileID
File ID: 2026-01715
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Location
Location: Sacramento Northern Parkway, District 2
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Recommendation
Recommendation: Pass a Motion: 1) authorizing the City Manager or designee to execute Amendment No. 1 to City Agreement PRC003349 with Community HealthWorks, in an amount not-to-exceed $201,055, for a new not-to-exceed amount of $1,557,243 for landlord engagement and case management services for the Street to Housing Pilot Program; and 2) extending the contract term of City Agreement PRC003349 through November 28, 2027.
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Contact
Contact: Ya-yin Isle, City Housing Manager, (916) 808-1869, yisle@cityofsacramento.org; Axel Magallanes, Housing Analyst, (916) 808-1844, amagallanes@cityofsacramento.org; Economic Development Department
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Presenter
Presenter: Not applicable.
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Attachments
Attachments:
1-Description/Analysis
2-Amendment No. 1 to PRC003349
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Additional Description/Analysis
IssueDetail
Issue Detail: On September 27, 2024, the State of California’s Department of Housing and Community Development (HCD) awarded the City of Sacramento an Encampment Resolution Fund (ERF) grant in the amount of $5,846,242.50. Administered by the City’s Economic Development Department, this grant provides funding for a Street to Housing pilot program, supporting 100 households moving directly from encampments on the Sacramento Northern Parkway into housing.
The Street to Housing program kicked off in February of 2025 with City Council authorizing two professional services agreements with Community HealthWorks (CoHeWo) and Housing Connector for landlord engagement/case management services and rent administration, respectively. In December of 2025 the final households were placed into housing, with a total of 102 households and 129 individuals ultimately placed into housing and supported with rental assistance and housing stabilization case management. Case managers with CoHeWo continue to provide ongoing housing stabilization services to assist clients with their transition to permanent housing solutions.
This staff report seeks authorization to execute a contract amendment with CoHeWo to continue providing housing stabilization case management to clients through November 2027. The proposed amendment will extend the existing agreement (PRC003349) expiration date to November 28, 2027, and increase the total not-to-exceed contract amount to $1,557,243. The budget amendment increases the amount for CoHeWo staffing, administrative costs, and adds a budget line item for direct client assistance. This increase will enable CoHeWo to continue providing essential case management services to Street to Housing clients, ensuring continuity of care and support for individuals transitioning into permanent housing.
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PolicyConsiderations
Policy Considerations: Sacramento City Code Section 3.04.010(B) mandates City Council approval for all agreements involving an income or expenditure of $250,000 or more. The contract amendment with CoHeWo exceeds the City Manager’s approval authority and requires approval by the City Council per City Code 3.04.020.
The City’s Street to Housing program also aligns with the Sacramento Regionally Coordinated Homelessness Action Plan (RCHAP), adopted in March 2024, supporting Solution 3 - Outreach and Engagement, which identified a Year One action to “Develop an estimated cost and scope for a Street to Housing Pilot based on national best practices.”
The contract amendment advances the Council-adopted priorities of Economic Development and Homelessness identified at the September 30, 2025, Priority and Goal Setting Workshop and adopted on November 18, 2025. Specifically, this Project implements Homelessness: Long-Term Housing Stability: Strategic Initiative 23: Implement the Street to Housing Encampment Resolution Pilot Program, in the City of Sacramento One City, One Future Priorities Strategic Workplan.
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EconomicImpacts
Economic Impacts: Not applicable.
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EnvironmentalConsiderations
Environmental Considerations: This report concerns actions supporting increased funding for case management staffing and client assistance. The action is an administrative activity that would not result in direct or indirect physical changes in the environment and is not a project as defined in the California Environmental Quality Act (CEQA) Guidelines section 15378(b)(4) and is not subject to CEQA (CEQA Guidelines section 15060(c)(3)).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: The recommendations in this report further local coordination in response to homelessness, while piloting a program with increased emphasis on housing solutions, consistent with the recommendations and solutions of the RCHAP, State direction, and national best practices in reducing homelessness. The recommended amendment supports the continuation of case management services to continue stabilizing participants as they move towards their long-term housing goals.
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FinancialConsiderations
Financial Considerations: The proposed amendment will increase the contract total not-to exceed amount by $201,055 for a new not-to exceed amount of $1,557,243. The proposed amendment will obligate the remaining $201,055 available of ERF-3-R grant funding. This funding was previously set-aside for City staff administrative costs and will now shift all grant funding to support case management and direct assistance for clients participating in this program. Sufficient funding (Operating Grants, Fund 2702) exists in the ERF Street to Housing Operating Grant Project (G02610610) to support this amendment.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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