To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Approval of Standard Agreement #78-115-1 with the California Department of Housing and Community Development for the Sherman Terrace Homekey+ Project
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute Standard Agreement #78-115-1 (State #25‑HK+-18902) with the California Department of Housing and Community Development (HCD), to pay the County an amount not to exceed $1,500,000 for the Homekey+ Program to support the development and construction of five permanent supportive housing units at Sherman Terrace in Pleasant Hill for the period of 15 years from the date HCD signs the agreement
FISCAL IMPACT:
No County General Fund impact. The project is funded with $1,500,000 in Homekey+ capital funds. Additional operating and development funding commitments are provided through Behavioral Health Services Act (BHSA) allocations.
BACKGROUND:
On January 27, 2026, Contra Costa County received a Conditional Award Letter from HCD for $1,500,000 in Homekey+ capital funding to support new construction of five permanent supportive housing units at the County‑owned Sherman Terrace site at 2025 Sherman Drive in Pleasant Hill.
On July 7, 2026, the Board of Supervisors approved the County’s execution of the Certification Regarding Non‑Application of Relocation Benefits (Agreement #78-115) and the corresponding Indemnification Agreement with the HCD for the Sherman Terrace Homekey+ Project. These actions were required to confirm that no persons, businesses, or farm operations would be displaced by the project and to allow HCD to proceed with contracting.
In order to finalize the award and allow HCD to release any funds, HCD now requires the County to execute Standard Agreement #78-115-1, which establishes the terms and conditions governing project development, expenditure deadlines, performance milestones, affordability requirements, and reporting obligations for the Homekey+ Program.
The Standard Agreement also contains an indemnification clause requiring the County to defend, indemnify, and hold harmless HCD and its officers, employees, and agents from any losses, damages, liabilities, claims, or legal expenses arising from the County’s use of Homekey+ funds or performance under the Agreement. This indemnification is standard for Homekey+ agreements and reflects the County’s role as grantee responsible for project implementation.
Execution of the Standard Agreement #78-115-1 is necessary to complete the contracting process with HCD and allow the County to move forward with the Sherman Terrace project using the awarded Homekey+ funds.
CONSEQUENCE OF NEGATIVE ACTION:
Failure to approve the Standard Agreement will prevent the County from entering into contract with HCD, resulting in the loss of the $1,500,000 Homekey+ award for construction of five permanent supportive housing units at Sherman Terrace.