City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2026-00489 2/10/2026
[Contract Amendment] Encampment Resolution Funding (ERF) Grant for Street to Housing Pilot Program
File ID: 2026-00489
Location: Citywide
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.
Contact: Ya-yin Isle, City Housing Manager, (916) 808-1869, [email protected]; Axel Magallanes, Housing Analyst, (916) 808-1844, [email protected]; City Manager’s Office of Innovation & Economic Development
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
3-Exhibit A - HCD Contract Amendment No.1 for ERF-3-R Funding Description/Analysis
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.
File ID: 2026-00489 2/10/2026
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.
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.” 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.
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).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
File ID: 2026-00489 2/10/2026
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.
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.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO. 2026-
Adopted by the Sacramento City Council
February 10, 2026
Authorization to Execute Amendment No. 1 for State Encampment Resolution Funding – Round 3 (ERF-3-R)
BACKGROUND:
A. In December 2023, the State of California’s (“State”) Interagency Council on Homelessness (“Cal ICH”) released a Notice of Funding Availability (“NOFA”) for $298,747,574.33 in funding for the Encampment Resolution Funding (“ERF”) Program. Such NOFA was Round 3 of ERF funding (called “ERF-3-R”) and the NOFA said funds would be awarded through competitive award with a rolling application process. In July 2024, the State’s Department of Housing and Community Development (“HCD”) took over responsibility for administering the ERF Program.
B. The ERF program funds actionable, person-centered local proposals that resolve the experience of unsheltered homelessness for people residing in encampments.
Resolving these experiences of homelessness will necessarily address the safety and wellness of people within encampments, resolve critical encampment concerns, and transition individuals into interim shelter with clear pathways to permanent housing or directly into permanent housing, using data-informed, non-punitive, low- barrier, person-centered, Housing First, and coordinated approaches. Proposals were encouraged to bolster existing, successful models and/or support new approaches that provide safe stable, and ultimately permanent housing for people experiencing homelessness in encampments.
C. Staff in the City’s Department of Community Response (“DCR”) conducted outreach and counted 497 individuals experiencing homelessness along the Sacramento Northern Parkway, located in District 2, and in surrounding neighborhoods (of which, 20% reported having a disability). DCR staff also determined that 57% are over the age of 45 and 56% of individuals were of a minority demographic. A barrier for these individuals entering shelter has been the lack of interim housing options in close proximity to the trail. The Roseville Road Campus, which is an existing City shelter and service campus that currently has 60 pallet homes and 40 trailers that opened in January 2024, is 3 miles east of the northern portion of the Sacramento Northern Parkway and located in District 2.
D. On April 30, 2024, the City’s Office of Innovation and Economic Development (“OIED”) – Housing submitted an application to HCD for ERF 3-R during their second window of application funding. For the ERF-3-R funding, the State did not require a City Council resolution authorizing the City to apply for funding. In its application with HCD, OIED staff proposed a pilot for a direct street-to-housing program for clients out of the Sacramento Northern Parkway. DCR also applied for ERF 3-R funding to partner with local community-based organizations to focus outreach directly on the Sacramento Northern Parkway as well as expand and improve the Roseville Road Campus.
E. On September 27, 2024, HCD awarded both City applications. The OIED proposal was awarded $5,846,242.50 in ERF 3-R funding and the DCR proposal was awarded $12,353,418.09 in ERF Round 4 Lookback (ERF-4-L) funding, OIED’s project has operated in close coordination with DCR’s ERF project since award and implementation.
F. On June 30, 2026, Assembly Bill 130 (AB 130) took effect which allowed HCD to extend the expiration dates and fiscal deadlines for all existing rounds of ERF. Under AB 130, HCD has amended OIED’s ERF-3-R agreement to extend the expiration date to April 30, 2029.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or designee is authorized 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.
Section 2. Exhibit A is part of this Resolution.
Table of Content:
Exhibit A – HCD Contract Amendment No. 1 for ERF-3-R Funding