TO: Mayor and Members of City Council
THRU: Jodi Phelps, Assistant City Manager
FROM: Christopher Cauley, MPA, Economic and Community Development
Director
DATE: September 28, 2026
RE:Title
Authorize the Mayor to Execute the 2024 Emergency Solutions Grant (ESG) Agreement AmendmentTitle
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COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal I: The City of Fayetteville will be a safe and secure community.
Goal IV: The City of Fayetteville will be a highly desirable place to live, work and recreate.
Objective 4.6: To reduce poverty and homelessness.
Goal V: The City of Fayetteville will be a financially sound City providing exemplary City services.
Objective 5.1: To ensure strong financial management with fiduciary accountability and plan for future resource sustainability by aligning resources with City priorities.
Executive Summary:
City Council is asked to authorize the Mayor to execute an amendment to the City’s FY 2024 Emergency Solutions Grants (ESG) agreement, extending the grant period through June 30, 2027. The grant supports homelessness prevention, rapid rehousing, and street outreach services through local nonprofit partners, and the extension will allow the City to complete activities already underway and fully expend the remaining federal funds.
Background:
HUD awarded the City $155,374 in FY 2024 ESG funds to support homelessness prevention, rapid rehousing, and street outreach services through local nonprofit partners. The original period of performance began September 20, 2024, and was scheduled to end September 20, 2026.
This was the City’s first ESG entitlement allocation, and the City did not have advance notice sufficient to establish the program before the funding became available. Staff therefore had to develop the program while implementing it, including coordination with the Fayetteville-Cumberland County Continuum of Care and community partners, adoption of required written standards, competitive selection and training of nonprofit subrecipients, and establishment of financial, reimbursement, monitoring, and reporting processes.
Because this startup work consumed a significant portion of the original grant period, staff requested additional time to complete eligible activities and expend the remaining funds. HUD approved the extension through June 30, 2027, on September 15, 2026; as of September 28, 2026, $13,622.65 remains to be expended.
Issues/Analysis:
HUD has approved the extension through June 30, 2027, subject to execution of the grant amendment. Council authorization will allow the Mayor to execute the amendment and preserve the City’s ability to expend the remaining FY 2024 ESG funds; without the amendment, any unexpended balance may be subject to recapture.
Budget Impact:
The amendment does not increase or decrease the $155,374 federal award. No additional City funding or appropriation is required.
Options:
1. Authorize the Mayor to execute an amendment to the City’s FY 2024 Emergency Solutions Grants (ESG) agreement, extending the grant period through June 30, 2027.
2. Do not authorize the Mayor to execute an amendment to the City’s FY 2024 Emergency Solutions Grants (ESG) agreement, extending the grant period through June 30, 2027.
3. Direct staff to some other action.
Recommended Action::Recommended Action
Staff recommends that City Council authorize the Mayor to execute an amendment to the City’s FY 2024 Emergency Solutions Grants (ESG) agreement, extending the grant period through June 30, 2027.
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Attachments:
1. Original ESG Agreement
2. 2024 ESG Agreement Amendment
3. Extension Request Letter
4. HUD’s Extension Approval Letter