Title
Approving Forgiveness of Debt for The Salvation Army’s Stockton Boulevard Anti-Displacement Program
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FileID
File ID: 2026-01577
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Location
Location: Districts 5 and 6
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Recommendation
Recommendation: Adopt a Resolution authorizing the City Manager or designee to waive repayment of up to $149,758 in Stockton Boulevard Housing Stabilization ineligible costs incurred by The Salvation Army (TSA).
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Contact
Contact: Ya-yin Isle, City Housing Manager, (916) 808-1869, yisle@cityofsacramento.org; Leslie Fritzsche, Economic Investment Manager, (916) 808-5450, lfritzsche@cityofsacramento.org; Axel Magallanes, Housing Analyst, (916) 808-1844, amagallanes@cityofsacramento.org; Economic Development Department
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Resolution
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Description/Analysis
IssueDetail
Issue Detail: In 2021, the City committed $5 million for anti-displacement programming through the Aggie Square Community Benefit Partnership Agreement (CBPA) and related settlement agreements to support anti-displacement activities in the Stockton Boulevard area. The CBPA outlined specific requirements to reach the intended communities, and included targeted zip codes: 95817, 95820, 95824, 95828 which were subsequently listed in all City contracts for anti-displacement programming as an eligibility requirement for assistance.
Through a competitive procurement process in 2022, the City of Sacramento selected and contracted with TSA to administer anti-displacement rental and utility assistance in the designated zip codes. The program began in February of 2023 and focused on assisting income-eligible households with rent and utility costs to stabilize households at-risk of homelessness and allow residents of these neighborhoods to remain housed. During the lifetime of the program, TSA assisted a total of 416 households (over 600 individuals) with just under $1 million in direct rent and utility assistance to the community. The total contract not-to-exceed amount for this program was $1,150,000.
Within three of the target zip-codes, there are areas that fall outside of the City of Sacramento’s city limits and are also located in the unincorporated County. In July 2024, a contract amendment was completed to clearly state that the households served must reside within the four targeted zip-codes but also within City limits. At the same time, TSA began a partnership with 211 in which 211 handled referrals and an initial intake into the TSA program for assistance. As the TSA agreement was nearing the end, City staff completed a final reconciliation and close-out in partnership with TSA. The reconciliation showed that there were numerous households assisted within the target zip-codes that resided within the unincorporated County over the timespan of July 2024 through December 2025. During that time, TSA incurred $248,147 in ineligible costs in total, $149,758 of which were invoiced and paid by the City and would have been due back to the City. The remaining $98,389 was never paid by the City because invoices were paused during the reconciliation process. TSA is already absorbing those costs.
The breakdown of the ineligible costs are as follows:
• 70 households were assisted with $195,847 in rental assistance
• 118 households were assisted with $109,565 in utility assistance
o $80,438 was paid to SMUD for 109 households
o $18,848 was paid to PG&E for 22 households
o $6,300 was paid to Sacramento County Utilities for 9 households
o $3,979 was paid to California American Water Company for 7 households
• 18 households received both rental and utility assistance
• 29 households received multiple types of utility assistance
While the City must be fiscally responsible with the City’s resources, it also seeks to support its non-profit partners and the greater Sacramento area community. Staff recommends the City Council forgive the full amount of ineligible costs given that forgiving the $149,758 owed by TSA serves a valid public purpose because the assistance helped stabilize low-income households at risk of homelessness within the priority Stockton Boulevard anti-displacement zip codes, aligning with the City’s housing-stabilization and anti-displacement goals. In this case, the ineligible expenditures were unintentional, were directed to households in the intended priority zip codes located near City boundaries and furthered the same anti-displacement objectives by keeping families housed and preventing overburdening other city resources.
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PolicyConsiderations
Policy Considerations: TSA’s assistance program provided much needed assistance to low-income families at risk of homelessness in the priority zip codes of 95817, 95820, 95824, and 95828. This programming was in alignment with the City’s commitment to housing stabilization and anti-displacement efforts surrounding Aggie Square. While some of the households assisted fell outside of City limits, they resided within priority zip codes and their assistance served the ultimate goal of these programs, to keep families stable and housed.
The assistance provided advances the Council-adopted priorities identified at the September 30, 2025, Priority and Goal Setting Workshop of Economic Development and Homelessness. Specifically, this Project implements the Homelessness: Long-Term Housing Stability: Strategic Initiative 25: Homelessness Prevention, 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 fiscal activities that do not constitute a “project” as defined by the California Environmental Quality Act Guidelines Section 15378(b)(4) because it qualifies as the creation of government funding mechanisms or other government fiscal activities, which does not involve any commitment to any specific project, which may result in a potentially significant physical impact on the environment.
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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: While the expenditure of City funding for services were outside of City boundaries, the expenditures were unintentional and ultimately served the public purpose and intent of the Community Benefit Partnership Agreement to prevent displacement of residents in the zip codes. The households supported were all in the appropriate zip codes and in close proximity to the City boundary. The impacts of not having assisted these households could have been ultimately detrimental to the City.
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FinancialConsiderations
Financial Considerations: Through the lifetime of TSA’s agreements, the City has paid approximately $1 million to TSA to administer this program. Of this amount, $149,758 was found to be owed back to the City in ineligible costs. Sufficient funding remains in the Stockon Boulevard Anti-Displacement Project (I02189030) to continue other anti-displacement activities without repayment of this amount.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
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