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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: February 18, 2026
To: Honorable Mayor and City Council Members
From: Gabriel Elliott, Director of Community Development & Housing Department: Community Development & Housing
Subject: Amendment No.1 to the Emergency Solutions Grant (ESG) Subrecipient Agreements with The Salvation Army and
Family Service Association of Redlands
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California adopt Resolution No. 2026-011:
1. Approving Amendment No. 1 to the FY 2025–26 Emergency Solutions Grant (ESG) Program Subrecipient Agreement with The Salvation Army (TSA) to increase the agreement by $74,276.38 incorporating prior-year unspent ESG funds, revising the not to exceed amount to $241,535.38 and extend the agreement term through December 31, 2026; and
2. Approving Amendment No. 1 to the FY 2025-26 ESG Program Subrecipient Agreement with Family Service Association of Redlands to extend the agreement term through December 31, 2026; and
3. Authorizing the City Manager, or designee, to take any additional actions and execute any agreements or documents necessary to implement Amendment No. 1 and administer the ESG grant program.
4. Authorizing the Director of Finance & Management Services to amend the FY 2025/26 operating and capital budget in the amount of $63,742.66 as a technical correction to recognize unspent FY 23-24 ESG Funds.
City Manager's Comments
The City Manager recommends approval.
Executive Summary
The City Council previously approved the Fiscal Year 2024–25 Annual Action Plan 3 1
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(FY24–25 AAP) for submittal to the U.S. Department of Housing and Urban Development (HUD) for funding under the CDBG, HOME, and ESG programs. The ESG Subrecipient Agreement with The Salvation Army and the Family Service Association of Redlands was executed based on that approval. Under the guidance of legal counsel and in alignment with HUD requirements, staff is returning to Council to request approval of a Subrecipient Agreement Amendment. This amendment extends the term of the agreement for both TSA and FSA through December 31, 2026, allowing for completion of services and expenditure of funds. In addition, it adds prior-year unspent ESG funds to TSA from previous fiscal years to the FY 2025–26 allocation, increasing program capacity for emergency shelter, homelessness prevention, and HMIS activities.
Background
The U.S. Department of Housing and Urban Development (HUD) awards Emergency Solutions Grant (ESG) funds to entitlement jurisdictions to support emergency shelter operations, essential services, street outreach, homelessness prevention, rapid rehousing, and Homeless Management Information System (HMIS) participation.
The City of San Bernardino is an ESG entitlement jurisdiction and receives annual allocations to support eligible homeless services. Subrecipient agreements are required under 24 CFR 576.500 to outline performance expectations, regulatory compliance responsibilities, and eligible activities.
On June 04, 2025, the City Council approved the FY 2025–26 Annual Action Plan (AAP) and authorized the City Manager or designee to execute all necessary documents to submit the AAP to HUD. The FY 2025–26 Annual Action Plan (AAP) represents the City’s first-year implementation strategy under the 2025–2029 Consolidated Plan. As part of the AAP, the City identifies goals, projects, and funding allocations for the use of Emergency Solutions Grant (ESG) funds to address homelessness.
For the FY 2025–26 program year, the City has been allocated $241,347 in ESG funding. ESG funds will be used to support eligible activities including emergency shelter, homelessness prevention, and rapid rehousing in accordance with U.S.
Department of Housing and Urban Development (HUD) requirements.
ESG-funded activities for the FY 2025–26 program year are being implemented by subrecipients selected through a competitive Notice of Funding Availability (NOFA) process conducted in accordance with HUD requirements and the City’s Citizen Participation Plan. The NOFA was publicly noticed and evaluated based on established criteria, including organizational capacity, experience providing ESG-eligible services, program design, and compliance with HUD ESG regulations.
Following the completion of the NOFA process, The Salvation Army (TSA) and Family Service Association of Redlands (FSA) were selected as ESG subrecipients for the FY 2025–26 program year. TSA and FSA demonstrated the capacity and experience necessary to deliver ESG-funded services and meet HUD performance, reporting, and 3 1
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compliance requirements. ESG funds awarded to these subrecipients will support eligible activities including emergency shelter, homelessness prevention, and related supportive services, in alignment with the goals of the FY 2025–26 Annual Action Plan and the City’s 2025–2029 Consolidated Plan. For FY 2025-26 program year, The Salvation Army was awarded $167,259.00 and Family Service Association of Redlands was awarded $55,987.00 in ESG funding.
This amendment concerns the ESG subrecipient agreement with The Salvation Army and Family Service Association of Redlands, which provides emergency shelter and homelessness prevention services within the City.
Discussion
The proposed Amendment No. 1 to the ESG Program Subrecipient Agreements with The Salvation Army (TSA) and Family Service Association of Redlands (FSA) accomplishes two critical objectives:
1. Extension of Agreement Term through December 31, 2026 The proposed amendment extends the term of the subrecipient agreements from June 31, 2026 to December 31, 2026, to allow sufficient time to fully implement ESG-funded activities, align expenditures with U.S. Department of Housing and Urban Development (HUD) expenditure deadlines, and ensure the effective use of prior-year unspent ESG funds.
2. Incorporation of Prior-Year Unspent ESG Funds to The Salvation Army Prior years of unobligated or unspent ESG funds are available for reallocation. HUD allows ESG entitlement jurisdictions to carry forward unused funds and reprogram them for eligible subrecipient activities. The proposed amendment increases the agreement amount for The Salvation Army to incorporate prior-year rollover funds and ensure all available ESG funds are programmed for eligible uses.
Under the amended ESG Program Subrecipient Agreement, The Salvation Army will continue to provide emergency shelter services and homelessness prevention activities, as well as utilize the Homeless Management Information System (HMIS) for client data collection, tracking, and performance monitoring. The ESG funding allocated to The Salvation Army includes the following prior-year amounts:
FY 2023–24: $63,742.66
FY 2024–25: $10,533.72
The FY 2023–24 rollover amount of $63,742.66 consists of the following components:
$12,133.51 in unspent ESG Administration funds.
$42,008.15 in CAP Program expenses that were not eligible for ESG reimbursement and were instead paid with General Fund resources, resulting 3 1
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in unused ESG funds available for reprogramming; and
$9,601.00 from the FY 2023–24 ESG grant that was not committed to a program during that fiscal year.
Of the FY 2023-24 rollover funds, $38,597.41 will be allocated to Rapid Re-housing services and $25,145.25 will be allocated to HIMIS activities The FY 2024-25 rollover amount of $10,533.72 represents unspent carryover fuds from The Salvation Army’s program funds. Those funds will be exclusively to support HIMIS related costs.
This amendment ensures that all ESG funds are allocated to eligible activities and that the City remains in compliance with HUD expenditure and program requirements.
During the amended agreement term, The Salvation Army will continue to provide the following ESG-funded services:
Emergency shelter and essential services for a minimum of 150 individuals experiencing homelessness;
Housing stabilization and rental assistance to prevent homelessness; and HMIS data entry and reporting to support system-level performance monitoring and compliance.
2021-2025 Strategic Targets and Goals
The request to approve the amendments to the subrecipient agreements aligns with Strategic Target No. 3: Improved Quality of Life by reducing the burden of homelessness through enjoyment, collaboration, and partnership with other entities.
Fiscal Impact
There is no General Fund impact. All activities are fully funded through the City’s ESG entitlement allocation and prior-year ESG rollover funds. .
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2026-011:
1. Approving Amendment No. 1 to the FY 2025–26 Emergency Solutions Grant (ESG) Program Subrecipient Agreement with The Salvation Army (TSA) to increase the agreement by $74,276.38 incorporating prior-year unspent ESG funds, revising the not to exceed amount to $241,535.38 and extend the agreement term through December 31, 2026; and
2. Approving Amendment No. 1 to the FY 2025-26 ESG Program Subrecipient Agreement with Family Service Association of Redlands to extend the agreement term through December 31, 2026; and
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3. Authorizing the City Manager, or designee, to take any additional actions and execute any agreements or documents necessary to implement Amendment No. 1 and administer the ESG grant program.
4. Authorizing the Director of Finance & Management Services to amend the FY 2025/26 operating and capital budget in the amount of $63,742.66 as a technical correction to recognize unspent FY 23-24 ESG Funds.
Attachments
Attachment 1 Amendment No. 1 to the FY2025-26 ESG Subrecipient Agreement with Salvation Army
Attachment 2 Original Salvation Army Subrecipient Agreement Attachment 3 Amendment No. 1 to the FY2025-26 ESG Subrecipient Agreement with Family Service Association of Redlands
Attachment 4 Original Family Service Association of Redlands Subrecipient Agreement
Attachment 5 Resolution No. 2026-011
Ward:
All Wards
Synopsis of Previous Council Actions:
June 4, 2025, The Mayor and City Council held a Public Hearing to receive public comments on the draft Fiscal Year 2025-2029 Consolidated Plan draft Analysis of Impediments to Fair Housing Choice and draft Fiscal Year 2025-2026 Annual Action lan associated with the Community Development Block Grant, HOME Investment Partnerships and Emergency Solutions Grant Pograms.
CC: Eric Levitt, City Manager