Fiscal Note
The proposed resolution approves the funding allocations recommended by the Community Development Division (CDD) as a result of the Homeless Services and Housing Resources Request for Proposals issued in May 2025.
Funding for the contracts outlined in the proposed resolution total $3,450,700. The contracts would utilize up to the amounts listed below in each of the funds:
- General Fund: $1,705,000
- MUNIS account #67213-54820-00000: $1,460,000
- MUNIS account #67214-54820-00000: $290,000
- Community Development Grants Fund: $1,745,700
- Emergency Solutions Grants: $165,000 (MUNIS project #73026)
- Community Development Block Grants: $365,000 (MUNIS project #71026)
- HOME-TBRA: $300,000 (MUNIS project #72026)
- HOME-ARP: $915,700 (MUNIS project #72921)
CDD's 2026 Operating Budget Request and carryforward in the Community Development Grants Fund from 2025 will sufficiently cover these contracts. Full funding for contracts beginning in 2026 is contingent upon adoption of the 2026 Operating Budget by the Common Council. No additional appropriation is required at this time.
Title
Authorizing the allocation of approximately $3.5 million of combined City and Federal funds among seven non-profit agencies to support the provision of homeless services and housing resources beginning in 2026, the outcomes of a competitive RFP process conducted by the Community Development Division, and authorizing the Mayor and City Clerk to enter into agreements with agencies selected to receive funds to implement the specified programs and services. (Citywide)
Body
BACKGROUND
The Common Council adopted the 2025–2029 Consolidated Plan on March 11, 2025, which specifies the City’s community development goals and objectives, including supporting homeless services and housing stability resources.
The Consolidated Plan affirms the City’s commitment to supporting activities that promote and sustain stable housing arrangements for people experiencing homelessness or housing instability. The strategies include providing effective tenant support and homelessness prevention services; ensuring safe emergency shelter options; offering housing-focused outreach services; and supporting permanent housing with appropriate services.
On May 9, 2025, the Community Development Division (CDD) issued the Homeless Services and Housing Resources RFP to identify community partners that will partner with the City and implement the services beginning January 1, 2026, until the next RFP process. Applications were accepted through June 27, 2025. CDD received 22 proposals from 12 agencies; one proposal was later withdrawn. All proposals are available for review on the CDD funding opportunities webpage.
An inter-agency review team reviewed and evaluated each proposal and conducted Q&A sessions with applicants on July 16 and 17, 2025. CDD staff, in consultation with the review team, developed draft allocation recommendations and, on August 6, 2025, shared those recommendations with the CDBG Committee.
ACTION
WHEREAS, earlier this year, the Common Council adopted the 2025–2029 Consolidated Plan, which identifies homelessness as a critical community issue and sets forth strategies and priorities for addressing it in collaboration with community-based organizations; and,
WHEREAS, the Community Development Division’s (CDD) proposed 2026 Operating Budget includes $2.23 million in the Community Agency Contracts line item for homeless services from City General Purpose Revenue (GPR) and reflects recurring federal grants including Emergency Solutions Grant (ESG), Community Development Block Grant (CDBG) and HOME Tenant-Based Rental Assistance (TBRA); and an additional $350,000 of GPR for use for Housing Resources; and,
WHEREAS, CDD’s base budget also contains $915,700 in one-time federal funds awarded to the City through the HOME Investment Partnerships American Rescue Plan Program (HOME-ARP) that is available to support eviction prevention services; and,
WHEREAS, on May 9, 2025, CDD issued an RFP for homeless services and housing resources for programs and activities to begin January 1, 2026, with a June 27, 2025 application deadline; and,
WHEREAS, funding that the City extends to support the Beacon Day Resource Center ($213,000) and administrative costs associated with the community’s Coordinated Entry ($70,000) is separately committed to Dane County and the Institute for Community Alliances as matching funds, and is not part of this RFP process; and,
WHEREAS, CDD staff reviewed submitted proposals, with input from an inter-agency review team, and developed a recommended allocation plan for the use of available funds, as follows:
Homeless Services
- Catalyst for Change, Inc. – Up to $310,000 (up to $250,000 GPR and up to $60,000 ESG) for street outreach services; and up to $45,000 (all GPR) for Extreme Weather Respite Hotel for the Unsheltered.
- MACH OneHealth (dba Madison Street Medicine) – Up to $240,000 (up to $201,000 GPR and up to $39,000 ESG) for street outreach services; and up to $230,000 (up to $105,000 CDBG and up to $125,000 HOME-TBRA) for a Rapid Rehousing program for single adults.
- Lutheran Social Services of Wisconsin and Upper Michigan, Inc. – Up to $132,000 (up to $66,000 GPR and up to $66,000 ESG) for a Rapid Rehousing program for single adults.
- Porchlight, Inc. – Up to $800,000 (up to $700,000 GPR for shelter operations and up to $100,000 HOME-TRBA for move-in cost assistance) to operate an Emergency Shelter for unhoused men; and up to $200,000 (all CDBG) for Permanent Housing Case Management services.
- The Salvation Army Dane County – Up to $107,000 (up to $62,000 GPR for shelter operations and up to $45,000 HOME-TRBA for move-in cost assistance) in connection to the agency’s Family Shelter; up to $92,000 (up to $62,000 GPR for shelter operations and up to $30,000 HOME-TRBA for move-in cost assistance) in connection to the agency’s Single Women’s Shelter; and up to $22,000 (all GPR) for shelter diversion services.
- YWCA Madison, Inc. – Up to $52,000 (all GPR) for Family Shelter operations.
Housing Resources
- Tenant Resource Center, Inc. – Up to $350,000 (up to $290,000 GPR and up to $60,000 CDBG) for tenant services including housing counseling, outreach and mediation services; and up to $915,700 (all HOME-ARP, available for use across three years) for eviction prevention services.
NOW, THEREFORE, BE IT RESOLVED, that the Common Council approves the funding allocations for homeless services and housing resources as recommended by the CDD; and,
BE IT FURTHER RESOLVED, that, in the event future federal ESG allocations deviate from projected levels, the Council authorizes CDD staff, in consultation with the CDBG Committee, to make corresponding adjustments to awards authorized under this resolution for ESG-eligible activities; and,
BE IT FINALLY RESOLVED, that the Common Council authorizes the Mayor and City Clerk to enter into contracts with the identified nonprofit agencies and up to the specified amounts to provide the designated programs and services, and take any other actions on behalf of the City hereunder.