To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract Amendment/Extension #25-078-8 with Shelter, Inc.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract Amendment/Extension #25-078-8 with Shelter, Inc., a non-profit corporation, effective June 30, 2026, to amend Contract #25-078-5, as amended by Contract Amendments #25-078-6 and #25-078-7, to increase the payment limit by $1,050,000, from $10,562,492 to an amount not to exceed $11,612,492, and to extend the termination date from June 30, 2026 to September 30, 2026, to provide additional housing assistance, property management, and master leasing services to youth and adults with Severe and Persistent Mental Illness (SPMI).
FISCAL IMPACT:
Approval of this Contract Amendment/Extension will result in additional expenditures of up to $1,050,000 and will be funded 85% by Behavioral Health Services Act (BHSA) revenues and 15% by State Behavioral Health Bridge Housing Grant funds. Beginning July 1, 2026, the Mental Health Services Act (MHSA) funding fully transitions to the BHSA to reflect full implementation and oversight required under California Proposition 1, approved by voters in March 2024, which modernizes MHSA by renaming it the BHSA and redirecting funding to support building a comprehensive, integrated, and unified behavioral health system statewide. (No rate increase)
BACKGROUND:
This Contract meets the social needs of the County’s population by providing support services to County residents that are homeless and have a diagnosis of SPMI or a dual-diagnosis of mental illness and substance abuse and are receiving services from Contra Costa County Behavioral Health or other approved referral agencies.
This Contract is entered into under and subject to the following legal authorities: California Government Code § 26227 and 31000. This Contract was approved by Health Services Personnel to ensure there is no conflict with labor relations. The Behavioral Health Services Division Contract Monitoring staff meet on a regular basis to ensure monitoring of performance measures set forth in the contract are upheld. This Contractor was selected under the MHSA 2025/2026 update to the MHSA three-year plan, approved by the Board of Supervisors on June 24, 2025.
On August 8, 2023, the Board of Supervisors approved Contract #25-078-5 with Shelter, Inc., in an amount not to exceed $9,030,382 for the provision of housing assistance to SPMI youth and adults, for the period from July 1, 2023 through June 30, 2026.
On February 25, 2025, the Board of Supervisors approved Contract Amendment #25-078-6 with Shelter, Inc., effective February 1, 2025, to increase the payment limit by $1,162,423 to an amount not to exceed $10,192,805 to provide additional housing assistance for SPMI youth and adults with no change in the term.
On January 13, 2026, the Board of Supervisors approved Contract Amendment #25-078-7 with Shelter, Inc., effective September 1, 2025, to increase the payment limit by $369,687 to an amount not to exceed $10,562,492 to provide additional housing assistance for SPMI youth and adults with no change in the term.
Approval of Contract Amendment/Extension #25-078-8 will allow Contractor to provide additional housing assistance, property management, and master leasing services through September 30, 2026.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract Amendment/Extension is not approved, SPMI youth and adults will not receive housing assistance services they need, putting them at risk for remaining homeless and requiring higher levels of care for mental illness and/or substance abuse.
CHILDREN’S IMPACT STATEMENT:
This program supports the following Board of Supervisors’ community outcomes: “Families that are Safe, Stable, and Nurturing”; and “Communities that are Safe and Provide a High Quality of Life for Children and Families”. Expected program outcomes include an increase in positive social and emotional development as measured by the Child and Adolescent Functional Assessment Scale (CAFAS).