City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01540 10/21/2025
Agreement: Disbursement of Homeless Housing, Assistance and Prevention Funds for Youth Sheltering
File ID: 2025-01540
Location: Citywide
Recommendation: Adopt a Resolution authorizing the Interim City Manager or designee to: 1) execute the Homeless Housing, Assistance and Prevention Program Funds Transfer Memorandum of Understanding with Sacramento Steps Forward to receive and administer $1,334,599 of HHAP-5 funding; and 2) establish revenue and expenditure budgets in the amount of $1,334,599 (Operating Grants, Fund 2702) for the CoC HHAP Youth Funding Project (G23000100) in the Operating Grants Fund.
Contact: Brian Pedro, Director, (916) 808-7816, [email protected]; Rodolfo Davidson, Program Manager, (916) 808-3703, [email protected]; Department of Community Response
Attachments:
1-Description/Analysis
2-Resolution
3-Sacramento Steps Forward HHAP-5 Funds Transfer Memorandum of Understanding Description/Analysis
Issue Detail: The Department of Community Response (DCR) seeks to execute a Memorandum of Understanding (MOU) with Sacramento Steps Forward (SSF), the administrative entity for the Sacramento City and County Continuum of Care (CoC). The MOU will transfer $1,334,599 of the CoC’s HHAP-5 funding to the City to support the operation of shelters designed to serve Transitional Aged Youth (TAY) between the ages of 18 and 24.
Homelessness is an issue that impacts communities without regard to geographic or political boundaries and for which there is no single answer or approach. Shelters play a significant role in addressing homelessness and as such it is necessary to create a systemic approach to addressing homelessness which includes low to no barrier crisis shelters. The City of Sacramento recognizes the important role that such shelters play in helping move people out of homelessness and into permanent housing. According to the 2024 Point in Time (PIT) Homeless Count released by the
File ID: 2025-01540 10/21/2025
Sacramento County Continuum of Care, the County of Sacramento had a homeless population of 6,615 individuals, a decrease of 28.7% since 2022. Approximately 335 Transitional Age Youth were experiencing homelessness, according to the 2024 PIT Count, a decrease of 53% since 2022.
The State of California has established the Homeless Housing, Assistance, and Prevention Program Round 5 (“HHAP-5”) pursuant to Article 1 of Chapter 6.5 (commencing with Section 50232) of Part 1 of Division 31 of the Health and Safety Code. (Added by Stats. 2023, Ch. 40, Sec. 17. (AB 129) eff.
July 10, 2023.) HHAP-5 is a $1 billion block grant program administered by the Department of Housing and Community Development (hereinafter referred to as the “State”.) HHAP is designed to provide jurisdictions with one-time grant funding to support regional coordination and expand or develop local capacity to address immediate homelessness challenges.
On March 24, 2024, the City, County, and Sacramento Steps Forward (acting on behalf of the CoC), submitted a joint application to the State for HHAP-5 funding, seeking $53.2 million in HHAP-5 funds in total for the Sacramento region.
On October 15, 2024, the City Council adopted Resolution No. 2024-0302, which authorized the City Manager to accept the state allocation of $27,053,240.85 in grant funds awarded to the City. The HHAP-5 funding agreement requires that 10% of awarded funds be used for youth sheltering. The City of Sacramento will use $2,705,324 of its HHAP-5 funds to operate shelters specifically for youth aged 18-24, commonly referred to as Transitional Aged Youth (TAY). The Continuum of Care (CoC) was awarded $13,345,987.85 in HHAP-5 funding, making the CoC’s required youth sheltering allocation $1,334,599.
The City has collaborated with the local Homeless (CoC) Lead Agency, Sacramento Steps Forward (SSF), as part of the collaborative approach to utilize the combined City and CoC allocations of HHAP-1, HHAP-2, HHAP-3, and HHAP-4 funding for Transitional Age Youth programming. City and SSF staff wish to continue this collaborative approach of utilizing the City’s HHAP-5 funding, and the CoC’s HHAP-5 funding to operate shelters specifically for Transitional Age Youth.
Policy Considerations: Pursuant to Sacramento City Code section 3.04.010, all contracts involving income or expenditure of $250,000 or more require City Council approval.
Economic Impacts: None.
Environmental Considerations: This report concerns administrative activities and government fiscal activities that do not constitute a "project" and is not subject to the provisions of the California Environmental Quality Act (CEQA) (CEQA Section 15378(b)(2)). Additionally, this report concerns activities that will not have a significant effect on the environment and are exempt from CEQA review (CEQA Guidelines Section 15061(b)(3)).
File ID: 2025-01540 10/21/2025
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: On July 15, 2025, City staff released a Request for Proposal on PlanetBids for Sheltering for Transitional Age Youth. The RFP was released in partnership with the CoC, Sacramento Steps Forward, as part of the collaborative approach to utilize the combined allocations of HHAP-5 funding for Transitional Age Youth programming. The City received three responses to the RFP. After initial review, Staff deemed all three eligible for review. A review panel comprised of staff from the City of Sacramento, Sacramento Steps Forward, and the County of Sacramento, are currently reviewing the proposals and scoring according to the evaluation categories and scoring outlined in the RFP. Once the review and scoring process is complete, the Department of Community Response (DCR) will enter into negotiations with the top ranked proposers, with the goal of entering into agreements beginning January 1, 2026. Any agreements involving an expenditure of $250,000 or more will come to City Council for consideration.
Financial Considerations: With Council approval to receive $1,334,559 in HHAP-5 funding from Sacramento Steps Forward, there will be funding available in the CoC HHAP Youth Funding Project (G23000100, Fund 2702) to enter into agreements with the RFP awardees. City staff will return to Council at a later date for approval of agreements with the TAY Sheltering RFP awardees.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO. 2025-XXXX
Adopted by the Sacramento City Council
October 21, 2025
Disbursement of Homeless Housing Assistance Prevention Funds for Youth Sheltering
BACKGROUND
A. Homelessness is an issue that impacts communities without regard to geographic or political boundaries and for which there is no single answer or approach. Shelters play a significant role in addressing homelessness and as such it is necessary to create a systemic approach to addressing homelessness which includes low to no barrier crisis shelters. The City of Sacramento recognizes the important role that such shelters play in helping move people out of homelessness and into permanent housing.
B. According to the 2024 Point in Time Homeless Count released by the Sacramento County Continuum of Care, the County of Sacramento had a homeless population of 6,615 individuals, a decrease of 28.7% since 2022. Approximately 335 Transitional Age Youth (ages 18 – 24) were experiencing homelessness, a decrease of 53% since 2022.
C. The Homeless Housing, Assistance and Prevention (HHAP) Program was signed into law by Governor Gavin Newsom on July 31, 2019. Authorized by Assembly Bill 101 (Chapter 159, Statutes of 2019), the HHAP Program is designed to provide jurisdictions with one-time grant funding to support regional coordination and expand or develop local capacity to address immediate homelessness challenges.
D. On March 12, 2024, the Sacramento City Council adopted Resolution No. 2024- 0070, authorizing the City Manager or the City Manager’s designee to apply for and receive HHAP-5 funding from the State of California (“State”).
E. On March 24, 2024, the Cit y, County, and the local Continuum of Care Sacramento Steps Forward, submitted a joint application to the State for HHAP-5 funding, seeking $53.2 million in HHAP-5 funds in total for the Sacramento region. In January 2025, the State allocated $27,053,240.85 million to the City.
F. On October 15, 2024, the City Council adopted Resolution No. 2024-0302, which authorized the City Manager, or the City Manager’s designee, to accept the state allocation of $27,053,240.85 in grant funds awarded to the City. Pursuant to state guidelines, at least 10% of a recipient’s HHAP-5 funds must be spent on services for homeless youth populations. The City’s HHAP-5 funding allocation for youth sheltering is $2,705,324. The Continuum of Care (CoC), Sacramento Steps Forward, was awarded $13,345,987.85 in HHAP-5 funding, making the CoC’s youth sheltering allocation $1,334,599.
G. The City has collaborated wit h Sacramento Steps Forward (SSF), the local Homeless Continuum of Care (CoC) Lead Agency, as part of the collaborative approach to utilize the combined City and CoC allocations of HHAP-1, HHAP-2, HHAP-3, and HHAP-4 funding for Transitional Age Youth programming. City and SSF staff wish to continue this collaborative approach of utilizing the City’s HHAP-5 funding, and the CoC’s HHAP-5 funding to operate shelters specifically for Transitional Age Youth.
H. In July of 2025, City staff releas ed a Request for Proposals (RFP) for Homeless Youth Shelters. The CoC’s HHAP-5 funds will be used to fund the Homeless Youth Shelters selected through this RFP process.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or the City Manager’s designee is authorized to execute the Homeless Housing, Assistance and Prevention Program Round 5 (HHAP-5) Funds Transfer Memorandum of Understanding with Sacramento Steps Forward to receive and administer $1,334,599 in HHAP-5 funding.
Section 2. The City Manager or the City Manager’s designee is authorized to establish revenue and expenditure budgets in the amount of $1,334,599 for the CoC HHAP Youth Funding Project (G23000100) in the Operating Grants Fund (Fund 2702).