SUBJECT
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Authorizing the City Manager to rescind the Casa de Misericordia 2025 Emergency Solutions Grant (ESG) contract, in the amount of $40,000.00. We are requesting an amendment to the Bethany House contracts under the 2025 ESG program to reallocate $40,000.00 to its Homelessness Prevention and Rapid Re-Housing Programs. Funding is available in the Emergency Shelter Grant Fund- 2025 ESG Grant.
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PREVIOUS COUNCIL ACTION
The contracts were approved by City Council on January 20, 2026.
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 ESG program funds by the U.S. Department of Housing and Urban Development. These funds may be used solely to assist the Homeless or those on the verge of becoming homeless. Due to new federal requirements under Systematic Alien Verification for Entitlements (SAVE) program, Casa de Misericordia decided to not move forward with the award in order to protect the identity of their clients. Bethany House originally had requested more funding on their application, however; due to limited funding we weren’t able to fund them what they had requested. Bethany House is able to expend funds through Homelessness Prevention and Rapid Re-Housing programs.
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: 2025 ESG Funds
Account #: 2019-9752
Change Order: Exceeds 25% Y/N: Click or tap here to enter text.
FINANCIAL IMPACT:
Funding is available in the 2025 ESG Program Funds.