To: Board of Supervisors
From: Dr. Grant Colfax, Health Services Director
Report Title: Contract #25-078-9 with Shelter, Inc.
Recommendation: Recommendation of the County Administrator
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Health Services Director, or designee, to execute on behalf of the County Contract #25-078-9 with Shelter, Inc., a non-profit corporation, in an amount not to exceed $4,576,315, to provide housing assistance, property management, and master leasing services to youth and adults with Severe and Persistent Mental Illness (SPMI) for the period October 1, 2026 through September 30, 2027.
FISCAL IMPACT:
Approval of this Contract will result in annual expenditures of up to $4,576,315 and will be funded by 85% Behavioral Health Services Act (BHSA) revenues and 15% by State Behavioral Health Bridge Housing Grant funds.
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. Contractor has been providing these services to the County since July 2017.
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 BHSA 2025/2026 update to the BHSA 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.
On June 9, 2026, the Board of Supervisors approved Contract Amendment #25-078-8 with Shelter, Inc., effective June 30, 2026, to increase the payment limit by $1,050,000 to an amount not to exceed $11,612,492, and to extend the term through September 30, 2026, to provide additional housing assistance for SPMI youth and adults.
Approval of Contract #25-078-9 will allow the Contractor to continue to provide housing assistance, property management, and master leasing services through September 30, 2027. This Contract is delayed due to extended negotiations between Contractor and Division.
CONSEQUENCE OF NEGATIVE ACTION:
If this Contract 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.
CHIDLREN’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).