To: Board of Supervisors
From: Dr. Ori Tzvieli, nterim Health Services Director
Report Title: Grant Application and Resolution for Homekey+ Program
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Interim Health Services Director, or designee, to (1) apply for grant funding from the State Department of Housing and Community Development, 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 Interim Health Services Director, or designee, to apply for funds under the Homekey+ Program and, if awarded, authorize the Interim 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. On-going services will be supported by Medi-Cal revenues. Construction match and operating costs will be 100% Behavioral Health Service 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.
Applications for Homekey+ are due May 30, 2025. Board authorization by way of the resolution associated with this staff report is required for grant submission. 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.
CONSEQUENCE OF NEGATIVE ACTION:
If this Application and Resolution are not approved, 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
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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 (“Department”) has issued a Notice of Funding Availability, dated March 29, 2023 (“NOFA”), for the Homekey Program (“Homekey” or “Program”). The Department 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.).
B. THE COUNTY OF CONTRA COSTA (“Applicant”) desires to apply for Homekey grant funds. Therefore, Applicant is submitting an application for Homekey funds (“Application”) to the Department for review and consideration.
C. The Department 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 Department-approved STD 213, Standard Agreement (“Standard Agreement”), and all other legal requirements of the Homekey Program subject to County Counsel review and approval.
NOW, THEREFORE, BE IT RESOLVED
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1. Applicant is hereby authorized and directed to submit an Application to the Department 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 the Department 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. Health Services Director, or designee, is authorized to execute the Application and the Homekey Documents on behalf of Applicant for participation in the Homekey Program.