1 ENCAMPMENT RESOLUTION FUNDING ROUND 3 WINDOW 3
AGREEMENT BETWEEN THE CITY OF VISALIA AND
COMMUNITY SERVICES EMPLOYMENT AND TRAINING, INC.
THIS AGREEMENT (the “Agreement”) is made this __ day of _______, 2025, (the “Effective Date”) by and between COMMUNITY SERVICES and EMPLOYMENT TRAINING, INC., a private, non-profit community-based organization (hereinafter “CSET”), and the CITY OF VISALIA, a Charter Law city of the State of California (the “City”). The City and CSET may be referred to collectively herein as the “Parties” or individually as a “Party.”
RECITALS
A. These Recitals are a material part of the Agreement and incorporated in the substantive and binding terms of the Agreement as if fully set forth therein.
B. The Encampment Resolution Funding (ERF) Program provides funding for person-centered projects that resolve unsheltered homelessness in encampments. ERF projects should address safety and wellness in encampments, resolve critical encampment concerns, and transition people into interim shelter or permanent housing. ERF projects should strengthen existing, successful models and/or support new approaches that provide safe, stable, and permanent housing for people in encampments. ERF funds may only be used for projects that connect people experiencing homelessness in encampments to interim shelter with clear pathways to permanent housing or place people directly into permanent housing to be used in accordance with applicable provisions under the authority of Chapter 7 of Part 1 of Division 31 of the California Health and Safety Code (HSC) (sections 50250 et seq.), the Encampment Resolution Funding Program (Program) was established to increase collaboration between the California Interagency Council on Homelessness (Cal ICH) local jurisdictions, and Continuums of Care.
C. On December 4, 2023, City Council authorized staff to apply for Encampment Resolution Funding Program, Round 3 (ERF-3-R WINDOW 3) for the first-year operation funds and rapid rehousing funds for the Visalia Navigation Center to provide interim shelter with pathways to permanent housing placement for persons living in targeted encampments within the City of Visalia. On September 27, 2024, the City of Visalia was awarded One Million, Six- Hundred Three Thousand, and Nine Hundred Sixty Three Dollars and 00/100 ($1,603,963.00) in ERF-3-R Window 3 funds for the Visalia Navigation Center, a Low-Barrier Navigation Center which includes Six-Hundred Twenty-Eight Thousand, and Nine Hundred Sixty Three Dollars ($628,963) for second-year operational funds, and Nine-Hundred Seventy- Five Thousand Dollars ($975,000) for rapid rehousing funds including 12-month rental subsidies for persons living in targeted encampments within the City of Visalia. Target encampments are identified in Exhibit C - Targeted Visalia Encampments.
D. CSET desires to operate a Low-Barrier Navigation Center for people experiencing homelessness, located at 3525 N. Court Street, Visalia, CA 93291, and more particularly described and identified in Exhibit A - Project Approach, attached hereto and incorporated herein
2 (the “Project”). Said Project will be committed to “Limited Clientele”, strictly to only those who are homeless, in accordance with 24 CFR 91.5 as set forth herein (the “Project”).
E. The Property is within the jurisdictional boundaries of the City. The operation of the Project will be accomplished using Encampment Resolution Funding (ERF), Permanent Local Housing Allocation (PLHA), Successor Agency Housing (SAH) funds, and other non-city funding sources.
F. The City is vested with the authority to use ERF, PLHA, and SAH funding for a variety of purposes, including providing funding to a community-based non-profit for operation of a public facility to be operated by a non-profit as a Low-Barrier Navigation Center for people experiencing homelessness. The project will utilize a Housing First, Low-Barrier Shelter Approach, which endeavors to quickly connect individuals and families experiencing homelessness to permanent housing without preconditions and barriers to entry.
G. The Project was constructed in all material respects in accordance with applicable zoning, building, housing and other codes, ordinances, and regulations consistent with the construction, and operation of a public facility on the Property.
H. CSET will own the public facility located in the City of Visalia at 3525 North Court Street, Visalia, CA, 93291 and lease the land from the owner Self-Help Enterprises (SHE).
The owner’s consent will be memorialized through a Memorandum of Lease between CSET and SHE.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, and subject to the terms and conditions hereinafter stated, CSET and City agree as follows:
I. PROJECT DETAILS.
A. CSET agrees to utilize the funding providing through this Agreement for purposes of operation of the Project. The Property shall be owned and operated by CSET to operate the facility (Visalia Navigation Center) as the lead organization and project manager. Subject to the specific terms and conditions contained herein, the following documents contain the general understanding of the parties with regards to the City’s funding for CSET’s operation of the Project: “Project Detail” provided by CSET to the City, which shall be incorporated herein as Exhibit A – Project Approach; (2) “Project Budget” spreadsheet provided by CSET, which shall be incorporated herein as Exhibit B – Project Budget.
B. As consideration for CSET’s obligations hereunder, the City shall provide ERF-3- R WINDOW 3 funds in the amount not to exceed One Million, Six-Hundred Three Thousand, and Nine Hundred Sixty Three Dollars and 00/100 ($1,603,963.00), for the period of May 1, 2025, through June 30, 2028, to assist CSET with operational costs and rapid rehousing funds of the Visalia Navigation Center.
C. CSET shall assist City in compliance with the requirements of the ERF program under the authority of Chapter 7 of Part 1 of Division 31 of the California Health and Safety Code (HSC) (sections 50250 et seq.), the Encampment Resolution Funding Program was established to increase collaboration between the California Interagency Council on
3 Homelessness (Cal ICH), Local Jurisdictions, and Continuums of Care for the following purposes:
1. Assist Local Jurisdictions in ensuring the safety and wellness of people experiencing homelessness in encampments.
2. Provide grants to Local Jurisdictions and continuums of care to resolve critical encampment concerns and transition individuals into safe and stable housing.
3. Encourage a data-informed, coordinated approach to address encampment concerns.
CSET also agrees to comply with all other applicable State, and local laws, regulations, and policies governing the funds provided under this Agreement. The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available.
II. GRANT COMPLIANCE.
A. Restrictions Requirements. CSET agrees that the Project shall be used as Low- Barrier Navigation Center, benefitting clientele - who are homeless and priority entry to those residing in targeted Visalia encampments, and following the “Housing First” approach and resulting in successful exits to permanent housing as per the requirements of ERF funds. All benefiting clients must be considered qualified persons ("Qualified Person”).
B. Qualified Person Certification. A Qualified Person is a person experiencing homelessness in accordance with the McKinney Act definition at 24 CFR 91.5. Annually during the affordability period for the Project, CSET must certify in writing to the City with appropriate supporting documentation that the Use Restriction Requirements required by this Section have been completed in accordance with ERF and City requirements.
C. Maintenance of the Project. CSET shall maintain the Project in accordance with the customs and practice generally applicable to public facilities in the City of Visalia. Said maintenance shall include, but not be limited to, the building, sidewalks, lighting, landscaping, irrigation of landscaping, and any and all other improvements on the Property.
D. Resident Conduct. CSET, its successors and assigns shall ensure that any Qualified Person residing at the Project conduct themselves in accordance with the following standards:
i. Standards of aesthetics for residents regarding use and condition of the exterior amenities of the Facility, including patios and entryways. ii. Noise standards that comply with City requirements and limits. iii. Rules related to open/recreational areas that address, at a minimum, alcoholic beverage use, and public nuisance activities. iv. Parking prohibition of inoperative vehicles, boats, trucks of one-ton capacity and over, trailers and/or recreational vehicles within the complex.
4 v. Standards of behavior for residents that could lead to eviction.
E. Maintenance and Operations. CSET agrees to serve as the Property manager/Project operator for the Project. CSET shall obtain City’s approval, which shall not be unreasonably withheld, if CSET arranges for a third party to serve as the Property manager/Project operator. CSET and its agents or assigns will comply with or otherwise implement the following Property management/Project operation activities:
i. CSET shall comply with all development standards, city codes, and ordinances. Buildings and premises, including paint/siding, roofs, windows, fences, parking lots, landscaping, and electrical systems shall be kept in good repair. Premises shall be kept free of junk and debris.
ii. CSET shall provide a regular program for the control of infestation by insects, rodents, and other pests.
iii. Where conditions are attributable to normal wear and tear, CSET shall make repairs and arrangements necessary to put and keep the premises in as good condition as required by law.
iv. CSET shall maintain all electrical, plumbing, heating, and other facilities in good working order.
v. CSET shall maintain the Public Facility in reasonably weather tight condition and good exterior appearance.
vi. CSET shall remove graffiti within forty-eight (48) hours of it having been observed and/or reported.
vii. CSET shall provide overnight access for the Visalia Police Department to CSET’s maintenance and management staff in person, by telephone, or email. Such numbers shall be provided to the Visalia Police Department dispatch center and updated promptly as changed.
viii. CSET shall establish and conduct a regular program of routine maintenance for the facility. Such program shall include, but not necessarily be limited to, regular inspections of common areas, restrooms, and other similar activities that typically require attention at periodic intervals, but not necessarily continuously. ix. The name and phone number of CSET or CSET’s contracted Property management/Project operator shall be posted in a prominent location at the front of the property.
x. CSET shall maintain decorative planting in a manner that does not obstruct or diminish lighting and visibility throughout the complex and common areas. xi. CSET shall manage the complex in a manner that does not permit inoperative vehicles, boats, trucks (one-ton capacity and over), trailers and/or recreational vehicles to be parked in the facility.
III. REPORTING COMPLIANCE
5 A. Reporting Compliance. CSET shall be responsible for Homeless Management Information System (HMIS) data entry and reporting to the City, Cal ICH, and California Department of Housing and Community Development (HCD) for all ERF-3-R WINDOW 3 targeted encampment clients. CSET shall submit such reports as are required by the City to meet its local obligations and its obligations to Cal ICH, and HCD. Pursuant to HSC §50254 and WIC §8256, ERF-3-R WINDOW 3 grantees are required to enter specified data elements on the individuals and families served into their local HMIS. CSET must follow the entry format specified by Cal ICH and/or HCD, which includes the use of funding codes (Other Funder Code and Grant ID) as described in the AB 977 HMIS Project Setup Instructions. Required reports include, but are not limited to the following:
ERF-3-R WINDOW 3 Subrecipient Requirements
Report Frequency Data Points
ERF-3-R Window 3
Quarterly Report
Quarterly • ERF-3-R Window 3 Quarterly Performance Report • Quarterly narrative and HMIS performance report.
Annual Report
Upon Project
Development
Annual • Annual Client Performance Tracker Report - Beneficiary data (direct client services) - demographics and income.
Final Report End of project • Major milestones (final performance report) • Goal comparison and analysis
• Leveraged funds
• Financial report
• Total cost and share that is ERF
Reimbursement
Requests
Monthly • Expenditures
• Timeliness
• Invoice
• General Ledger of Expenditures
• Source Expenditure Documents (i.e., receipts or invoices)
IV. DEFAULT AND REMEDIES
A. Failure to Perform. Failure by CSET to duly perform, comply with, or observe any of the conditions, terms, or covenants of this Agreement shall constitute a breach of this Agreement, such failure having continued uncured for thirty (30) days after receipt of written notice thereof by CSET from City. Alternatively, if the breach cannot reasonably be cured within thirty (30) days, CSET shall not be in breach so long as CSET is diligently undertaking to cure such breach and such breach is cured within ninety (90) days.
B. Notice of Default and Opportunity to Cure. For any breach of this Agreement, City shall give written notice to CSET of any breach of the Agreement by specifying:
i. The nature of the event or deficiency giving rise to the breach of the Agreement.
6 ii. A date, which shall not be less than thirty (30) calendar days from the date of receipt of the notice, by which such action to cure must be taken. The City has the sole discretion to determine whatever additional reasonable time, up to ninety (90) days, is needed to cure.
C. Remedies. Upon the occurrence of a breach of the Agreement, and a failure to cure said breach within the time specified, the City's obligation to disburse funds shall terminate, and City may also, in addition to other rights and remedies permitted by the Agreement or applicable law, proceed with any or all of the following remedies in any order or combination City may choose in its sole discretion:
i. Terminate this Agreement, in which event City funds previously disbursed shall become due and payable within thirty (30) days, including any loan payments that may have otherwise been forgiven pursuant to Section I(C) herein. ii. Bring an action in equitable relief seeking the specific performance by Borrower of the terms and conditions of this Agreement, and/or enjoining, abating, or preventing any violation of said terms and conditions, and/or seeking declaratory relief. iii. Pursue any other remedy allowed by law or in equity.
D. Hardship Exemption. If CSET cannot comply with the requirements of this Agreement for any reason, CSET may request City to alter CSET’s obligations hereunder on terms acceptable to City, but no such request may be made later than thirty (30) days after City has delivered to CSET notice of a breach or violation of this Agreement. CSET must deliver the request in writing to City. The request must set out the reasons why CSET cannot comply with this Agreement and must describe any hardship to CSET that compliance would cause. City is under no obligation to grant any relief and may proceed with its remedies under this Section III, at law and in equity, despite CSET’s request or the hardship involved. The relief, if any, is to be determined by City in its sole discretion.
E. Right of Contest. CSET shall have the right to contest in good faith any claim, demand, levy, or assessment, the assertion of which would constitute a breach of the Declaration hereunder. Any such contest shall be prosecuted diligently and, in a manner, non-prejudicial to City or the rights of City hereunder.
F. Remedies Cumulative. No right, power, or remedy given to City by the terms of this Agreement is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to City by the terms of any such instrument, or by any statute or otherwise against CSET and any other person. Neither the failure nor any delay on the part of City to exercise any such rights and remedies shall operate as a waiver of such right or remedy, nor shall any single or partial exercise by City of any such right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy.
V. GENERAL PROVISIONS
A. Notices, Demands and Communications between the Parties. Any approval, disapproval, demand, document or other notice ("Notice") which any party may desire to give to the other parties under this Agreement must be in writing and may be given by any commercially
7 acceptable means, including, but not limited to email and/or via overnight courier, to the party to whom the Notice is directed at the address of the Party as set forth below, or at any other address as that Party may later designate by Notice.
To City: City of Visalia, Finance Department
Attention: Housing Division
707 W. Acequia Avenue
Visalia, CA 93291
(559) 713-4460
[email protected]
To CSET: Community Services & Employment Training, Inc.
Attention: Mary Alice Escarsega-Fechner
312 NW 3rd Avenue
Visalia, CA 93291
[email protected]
Any Notice shall be deemed received immediately if delivered by hand, on the third day from the date it is postmarked if delivered by first-class mail, postage prepaid, upon receipt of verification of receipt if sent via email, and on the next business day if sent via nationally recognized overnight courier. Notices sent by a Party's attorney on behalf of such Party shall be deemed delivered by such Party.
B. Compliance with Chapter 7 of Part 1 of Division 31 of the California Health and Safety Code (HSC) (sections 50250 et seq.), for the Encampment Resolution Funding Program.
C. Records Maintenance. CSET shall retain all records pertinent to the Project and activities and expenditures incurred under this Agreement for a period of five (5) years after the termination of all activities funded under this Agreement or after the resolution of all State audit findings, whichever occurs later. CSET shall maintain data documenting resident eligibility for housing and/or services provided. Such data shall include, but not be limited to, resident name, address, income level, ethnicity, and description of housing and/or services provided. Reporting to City by CSET of compliance with this provision shall be accomplished by delivering the initial “Income Certification” application/form which shall be provided to CSET by the City.
Thereafter, ongoing monitoring shall also include submission of annual audits, review of partner agreements, review of cash flows, reserves and capital improvements as requested by City. In addition, CSET shall, if requested by City, provide to City a report or any other documentation relative to partnerships agreements, operational statements, including cash flow, reserves and capital improvements, occupancy, Resident composition, and such other matters as City shall reasonably request to ensure compliance.
D. Assignment, Transfers and Successors. For purposes of this Agreement, "Transfer" shall mean any sale, assignment, or transfer, whether voluntary or involuntary, of any rights and/or duties under this Agreement, and/or any interest in the Project or the Property, including, but not limited to, a fee simple interest, a joint tenancy interest, a partnership interest,
8 a leasehold interest, a security interest, or an interest evidenced by a contract by which possession of the Project is transferred.
i. No Transfer shall be permitted without the prior written consent of the City.
ii. The approval of transfers by CSET to another legal entity wholly controlled and managed by CSET shall be permitted by the City and approval of said transfer shall not be reasonably withheld.
F. Severability. In the event any term or provision of this Agreement is deemed to be in violation of law, null and void, or otherwise of no force or effect, the remaining terms and provisions of this Agreement shall remain in full force and effect.
G. Parties Not Co-Venturers. Nothing in this Agreement is intended to, or does, establish the City and CSET as partners, co-venturers or principal and agent with one another.
H. Warranties. City expresses no warranty or representation to CSET as to fitness or condition of the Property or the Project, other than those specifically contained in the Purchase and sale Agreement between the Parties.
I. Attorney’s Fees. In the event any legal action is commenced to interpret or to enforce the terms of this Agreement or to collect damages as a result of any breach thereof, the party prevailing in any such action shall be entitled to recover against the party not prevailing, its reasonable attorney’s fees and costs incurred in such action.
K. Indemnification Regarding Project. CSET agrees to indemnify, protect, hold harmless and defend (by counsel reasonably satisfactory to City) the City, and its respective Council members, officers and employees from all liability arising out of the Project, the Property, and CSET’s operation of the Project, to the extent that such liability arises from the acts or omissions of CSET, its subcontractors or guests. This provision shall survive expiration and/or termination of this Agreement.
L. Governing Law. This Agreement shall be interpreted under the laws of the State of California.
9 IN WITNESS WHEREOF, Purchaser has executed this Agreement, effective the day and year first set forth above.
COMMUNITY SERVICES and EMPLOYMENT
TRAINING, INC. (CSET)
Dated: _____________________ By:________________________________
Its: Mary Alice Escarsega-Fechner,
Executive Director
CITY OF VISALIA
Dated: ______________________ By: _____________________________
Its: Leslie Caviglia, City Manager
APPROVED AS TO FORM
By: ____________________________
City Attorney
10 Exhibit A - Project Approach
The Visalia Navigation Center is a 100-bed low-barrier navigation center for individuals experiencing homelessness with clear pathways to permanent housing placement. The Visalia Navigation Center will provide a one-stop center for immediate shelter, essential services, and direct placement into permanent housing for people experiencing homelessness. The Visalia Navigation is located at 3525 N. Court St., Visalia. This approximately 20,000 sq. ft. public facility will accommodate 100-beds, offices space, two dormitory-type spaces, one for men and one for women, 10 private rooms for families with children, commercial kitchen, dining room, large common area, and laundry room. Exterior amenities will include a playground area, courtyard, and animal kennels. To ensure the Visalia Navigation Center clients gain stability and successfully transition to permanent housing, each client will be assigned a trauma informed care trained case manager, and all staff and volunteers will be trained to provide trauma informed care and harm reduction.
CSET will provide Visalia Navigation Center residents with case management services that are aimed at assisting residents in successfully transitioning from homelessness into permanent housing. Case Management services will be focused on completing required tasks to secure permanent housing. Additional services will be available to assist in linking residents to community services for mental health or substance abuse treatment, social service assistance, education or vocation support, and life skills. CSET will serve as the liaison with the Kings/Tulare Homeless Alliance (Alliance) to accept referrals from Coordinated Entry System (CES) and coordinate with other service providers. In addition to the housing and supportive services provided, CSET will serve daily meals to residents out of the onsite commercial kitchen.
Progress will be measured by the number of homeless placed in permanent housing, and the numbers of homeless remaining in the targeted encampments. The Visalia Navigation Center will use the Vulnerability Index-Service Prioritization Decision Tool (VI-SPDAT). The local Continuum of Care (CoC) will use the Homeless Management Information System (HMIS) to refer individuals from the CES to the appropriate program, with priority given to residents of the targeted Visalia encampments.
The Visalia Navigation Center will complete monthly progress reports including narratives and statistics of unduplicated individuals assisted, demographics, race, ethnicity, all services provided, and the number of VI-SPDAT assessments, new HMIS clients, job trainings/placements, and permanent housing placements.
Outcomes:
• Facilitate a minimum of 200 interim and 100 permanent housing exits in the first year. • Secure and sustain exits to permanent housing for 50 people per year with a recidivism rate of less than 10% per year.
11 Exhibit B - Project Budget
12 Exhibit C – Targeted Visalia Encampments
Encampment Resolution Funding Round 3
1. State Hwy 198 Ben Maddox on ramp and State Hwy 198 between Burke Street and Santa Fe Street (4,031 ft), and the Demaree on ramp (785 ft).
13 2. State Route 63 at Riverway Sports Park, N. Dinuba Blvd between West Riggin Avenue and East Houston Avenue, and Lincoln Oval Park.