To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Grant Application and Resolution 2025/xxx for Homekey+ Program
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to (1) apply for grant funding from the State Department of Housing and Community Development (HCD), in an amount not to exceed $2,250,000 to develop a project at a County-owned property in Pleasant Hill to create five (5) units of permanent supportive housing for clients with serious behavioral health conditions under the Homekey+ program; and (2) ADOPT a Resolution authorizing the Health Services Director, or designee, to apply for funds under the Homekey+ Program and, if awarded, authorize the Health Services Director and/or the Public Works Director, to execute the project funding agreement and all other legal requirements of the Program subject to County Counsel review and approval.
FISCAL IMPACT:
If awarded, County will receive funds in an amount not to exceed $2,250,000 from the State of California Department of Housing and Community Development to construct five (5) units of permanent supportive housing for individuals who are living with serious behavioral health conditions. Under the terms of the program the County would be responsible for any project overages and to match 50% of project costs exceeding $250,000 per unit or $375,000. Additionally, if awarded, County will be responsible for ongoing operating costs estimated to be $115,200 in the first year, offset by tenant rents up to 30% of the tenant’s monthly income. Ongoing services will be supported by Medi-Cal revenues. Construction match and operating costs will be 100% Behavioral Health Services Act (BHSA) funds.
BACKGROUND:
In March of 2024, California voters approved Proposition 1, a two-bill package amending the Mental Health Services Act (Senate Bill 326) and the Behavioral Health Bond Infrastructure Act of 2024 (Assembly Bill 531) to build on previous Homekey rounds and help support the development of permanent affordable housing with supportive services for individuals with mental health or substance use challenges who are at risk of, or experiencing homelessness.
In order to develop priorities for projects development under recent State funding opportunities Contra Costa Behavioral Health (CCBH) conducted a qualitative and quantitative Needs Assessment with community stakeholders. This Needs Assessment identified additional need for several types of residential facilities, both secure and voluntary, and highlighted a preference to create campus-like settings with a range of services from residential programs to permanent supportive housing with on-site supportive services available to all residents when possible.
CCBH has partnered with County Public Works to facilitate obtaining the necessary architecture, real estate and construction management services required to submit applications under this program.
On May 13, 2025 the Board of Supervisors approved Resolution 2025-140 authorizing the Health Services Director or designee to apply for funds from the HCD in an amount not to exceed $2,250,000. In October 2025 representatives from HCD contacted the County requesting a revised resolution to reflect the most current Notice of Funding Availability dates and citations. This new Resolution is being submitted in response to that request.
Approval of this Resolution will allow CCBH to apply for grant funding from the State Department of Housing and Community Development, in the amount not to exceed $2,250,000.
Board authorization by way of the updated resolution associated with this staff report is required for grant submission and acceptance. County is not obligated to accept funds from any award that is made. The Division will return to the Board of Supervisors for acceptance of the award and any terms and conditions required by the award subject to County Counsel review and approval.
CONSEQUENCE OF NEGATIVE ACTION:
If this Board action is not approved the Resolution will not get updated and County will not be eligible to receive funds for permanent supportive housing in campus like environments for individuals who are at risk of, or experiencing, homelessness, and are living with serious behavioral health conditions.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
body
IN THE MATTER OF A RESOLUTION OF THE GOVERNING BODY OF THE COUNTY OF CONTRA COSTA AUTHORIZING APPLICATION TO AND PARTICIPATION IN THE HOMEKEY PROGRAM
WHEREAS,
A. The Department of Housing and Community Development (“HCD”) has issued a Notice of Funding Availability, dated November 26, 2024 (“NOFA”), for the Homekey+ Program (“Homekey+” or “Program”). HCD has issued the NOFA for Homekey+ grant funds pursuant to Health and Safety Code Section 50675.1.3 (Assem. Bill No. 140 (2021-2022 Reg. Sess.), § 20.); Health and Safety Code Section 50675.1.5 (Assem. Bill No. 531 (2023-2024 Reg. Sess.); Section 14184.402 of the Welfare and Institutions Code; Section 5891.5 of the Welfare and Institutions Code; and Round 5 and 6 of the Homeless Housing, Assistance and Prevention (HHAP) grant program. (Assem. Bill No. 129 (Chapter 40, Statutes 2023) and Assem. Bill No. 166 (Chapter 48, Statutes 2024), respectively.
B. County of Contra Costa, a political subdivision of the State of California (“Applicant”) desires to apply for Homekey+ grant funds. Therefore, Applicant is submitting an application for Homekey+ funds (“Application”) to HCD for review and consideration.
C. HCD is authorized to administer Homekey+ pursuant to the Multifamily Housing Program (Chapter 6.7 (commencing with Section 50675) of Part 2 of Division 31 of the Health and Safety Code). Homekey+ funding allocations are subject to the terms and conditions of the NOFA, the Application, the HCD-approved STD 213, Standard Agreement (“Standard Agreement”), and all other legal requirements of the Homekey+ Program.
NOW, THEREFORE, BE IT RESOLVED
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1. Applicant is hereby authorized and directed to submit an Application to HCD in response to the NOFA, and to apply for Homekey+ grant funds in a total amount not to exceed $2,250,000.
2. If the Application is approved, Applicant is hereby authorized and directed to enter into, execute, and deliver a Standard Agreement in a total amount not to exceed $2,250,000, any and all other documents required or deemed necessary or appropriate to secure the Homekey+ funds from HCD and to participate in the Homekey+ Program, and all amendments thereto (collectively, the “Homekey+ Documents”).
3. Applicant acknowledges and agrees that it shall be subject to the terms and conditions specified in the Standard Agreement, and that the NOFA and Application will be incorporated in the Standard Agreement by reference and made a part thereof. Any and all activities, expenditures, information, and timelines represented in the Application are enforceable through the Standard Agreement. Funds are to be used for the allowable expenditures and activities identified in the Standard Agreement.
4. The Health Services Director, or their designee, is authorized to execute the Application and the Homekey+ documents on behalf of Applicant for participation in the Homekey+ Program.