Title
[Contract Amendment] Encampment Resolution Funding (ERF) Grant for Street to Housing Pilot Program
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FileID
File ID: 2026-00489
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Location
Location: Citywide
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Recommendation
Recommendation: Adopt a Resolution authorizing the City Manager or designee to execute Contract Amendment No. 1 with the State of California’s Department of Housing and Community Development (HCD) for Encampment Resolution Grant Funding Round 3 (ERF-3-R) to extend the contract expiration to April 30, 2029.
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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; City Manager’s Office of Innovation & Economic Development
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Resolution
3-Exhibit A - HCD Contract Amendment No.1 for ERF-3-R Funding
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Description/Analysis
IssueDetail
Issue Detail: On April 30, 2024, City staff submitted two separate applications to HCD for ERF-3-R funding under HCD’s second application window. One application was submitted by the City’s Department of Community Response (“DCR”), which focused on an expansion of the City’s Roseville Road Campus (“RRC”), and one application was submitted by OIED to pilot a street-to-housing program. Both proposals were awarded funding by HCD on September 27, 2024. OIED’s street-to-housing project was awarded approximately $5.8 million in ERF 3-R funding.
In February of 2025, City staff kicked off the Street to Housing Pilot, and in December of 2025 the final households were placed into housing. Since February 2025, 102 households and 129 individuals have been placed into housing and assisted with housing stabilization case management. Case managers continue to provide ongoing housing stabilization services to assist clients in their transition to more permanent housing solutions.
On June 30, 2025 Assembly Bill 130 (AB 130) took effect, allowing HCD to extend the expiration and fiscal deadlines for all existing rounds of ERF. The contract amendment attached to this report is a result of AB 130 and will extend OIED’s ERF agreement out to April 30, 2029. While the final expenditure deadline for all program funds is October 4, 2028, grantees are expected to continue reporting and communicating information and materials about the program until April 30, 2029.
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PolicyConsiderations
Policy Considerations: The actions in this report are consistent with the City of Sacramento Housing Element of the General Plan, specifically Policy H-7.2 that speaks to Regional Coordination in our response to homelessness.
The Street to Housing program is consistent with the Sacramento Regionally Coordinated Homelessness Action Plan (“RCHAP”), adopted in March 2024 and updated in August 2025. This program supports Solution 3 - Outreach and Engagement of the RCHAP, which identified a Year One action to “Develop an estimated cost and scope for a Street to Housing Pilot based on national best practices; pending available funding and availability of housing subsidies; and supports initial implementation in concert with other system housing resources and cross-sector partners.”
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EconomicImpacts
Economic Impacts: Efforts to reduce and minimize the occurrence of homelessness in our
community improves the economic outlook of all community members, including those who are able to avoid homelessness through prevention and diversion, those who are reintegrated into the workforce through local shelter and training options, individuals and families who gain permanent affordable housing and have greater expendable income to take care of their needs and support the local economy, and local businesses with access to a larger job pool and decreased impacts.
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): This resolution is exempt from CEQA
pursuant to CEQA Guidelines sections 15061(b)(3) (it can be seen with certainty that no
significant effect on the environmental would occur), 15269(c) (relating to specific actions
necessary to prevent or mitigate an emergency), and 15378(b)(4) (government fiscal activities
which do not involve any commitment to any specific project which may result in a potentially
significant physical impact on the environment); and California Government Code sections
8698.4(a)(4) (actions taken by a local agency to lease, convey, or encumber land owned by a
city, county, or city and county, or to facilitate the lease, conveyance, or encumbrance of land
owned by the local government for, or to provide financial assistance to, a homeless shelter
constructed or allowed by the Shelter Crisis Law) and 65660(b) (low barrier navigation
centers).
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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 and expand existing sheltering efforts, while beginning to move City contributions in the homeless response system towards an increased emphasis on permanent housing, consistent with the recommendations and solutions of the Sacramento Regionally Coordinated Homelessness Action Plan, HCD direction, and national best practices in reducing homelessness. Approval of this contract amendment will allow City staff extended timelines to continue working with clients enrolled in the Street to Housing Pilot.
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FinancialConsiderations
Financial Considerations: Contract Amendment No.1 does not provide any additional grant funding to OIED’s pilot program. This amendment is solely to extend timelines.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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