SUBJECT
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Authorizing the City Manager to enter into multiple contracts and award 2025 Emergency Solutions Grant (ESG) Program funds made available by the U.S. Department of Housing and Urban Development (HUD) in the total amounts of:
1. $191,045.00 to Bethany House of Laredo, Inc., for shelter operations, provision of essential services, street outreach services, homelessness prevention assistance, rapid re-housing assistance, and homeless management information system.
2. $40,000.00 to Casa de Misericordia for the operations of their shelter.
Funding is available in Emergency Solutions Grant.
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PREVIOUS COUNCIL ACTION
On July 21, 2025, City Council approved the submission of the 2025-2029 Consolidated Plan and the 2025-2026 One Year Action Plan to HUD that included the application for 2025 Emergency Solutions Grants program funds in the amount of $266,495.00.
BACKGROUND
As a result of the submission of the 2025-2026 One-Year Action Plan, the City of Laredo was awarded $266,495.00 in Emergency Solutions Grant program funds by the U.S. Department of Housing and Urban Development. The ESG program requires that all funds be committed within 180 days of the award date. These funds may be used solely to assist the homeless or those on the verge of becoming homeless. The City, through public notice, requested proposals from local homeless service providers for the ESG funds. Proposals were received from three (3) interested agencies including Bethany House, Casa de Misericordia and Holding Institute. The proposals were reviewed by Community Development staff composed of the Director, Assistant Director, Grants Coordinator, and Compliance Manager. Considered in the award of funds was the requesting agency's past performance including the timely use of ESG program funds and adherence to program rules and regulations. Also, program rules require that not more than 60% of program funds be utilized to fund the costs of prevention and rapid re-housing services.
VIVA LAREDO PLAN ALIGNMENT
Alignment rating: Strong
• Goal 7.8 - Improve access to medical care.
"Collaborate with private, non-profit, and other governmental entities to establish and implement a method for recruiting and retaining medical providers."
(Viva Laredo Comprehensive Plan, p. 7.27)
Relevance: This goal encourages partnerships with non-profits and service providers to meet public health needs, consistent with the City's approach to funding local shelters and outreach.
• Goal 7.10 - Prevent homelessness and reduce chronic homelessness.
"Implement policies to prevent homelessness and support services for the chronically homeless population."
(Viva Laredo Comprehensive Plan, p. 7.28)
Relevance: This is directly fulfilled by funding rapid re-housing, street outreach, and prevention services.
• Policy 7.10.1 - Support transitional housing and homeless shelters.
"Support transitional housing and homeless shelters that help individuals move from crisis to stability."
(Viva Laredo Comprehensive Plan, p. 7.28)
Relevance: The contracts fund shelter operations and re-housing, aligning precisely with this policy.
• Policy 7.10.3 - Collaborate with regional partners to address homelessness.
"Work with service providers, public agencies, and advocacy groups to coordinate and enhance services for the homeless."
(Viva Laredo Comprehensive Plan, p. 7.28)
Relevance: The City engaged local service providers through a public proposal process, selecting agencies with proven performance.
Summary of alignment:
This agenda item demonstrates strong alignment with the Viva Laredo Comprehensive Plan, particularly Goal 7.10 and related policies. The contracts fulfill Policy 7.10.1 by funding shelter services and Policy 7.10.3 through collaboration with local non-profits. In addition, the initiatives align with broader public health and equity goals by preventing homelessness and aiding vulnerable populations, consistent with Goal 7.8. The targeted funding for essential services and housing assistance directly advances the Plan’s stated commitment to supporting individuals in crisis, promoting stability, and building a resilient community support network.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
That this motion be passed.
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Fiscal Impact
Fiscal Year: 2025-2026
Budgeted Y/N?: Y
Source of Funds: ESG
Account #: 219-9752
Change Order: Exceeds 25% Y/N: N
FINANCIAL IMPACT:
Funding is available in the 2025 ESG Program Funds.