REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
February 24, 2026
FROM
JOSHUA DUGAS, Acting Director, Department of Behavioral Health
SUBJECT
Title
Amendment to Memoranda of Understanding with the Housing Authority of the County of San Bernardino for the Continuum of Care In-Kind Service Value Match Programs
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 2 to Memoranda of Understanding listed below with the Housing Authority of the County of San Bernardino, for the Continuum of Care In-Kind Service value match, updating contract language and correcting the total in-kind service value match amount of $176,254:
1. Project Gateway program, Memorandum of Understanding No. 25-470, for the in-kind service value of $4,296, for the period of March 1, 2025 through February 28, 2026.
2. Laurelbrook Estates program, Memorandum of Understanding No. 25-471, for the in-kind service value of $28,378, for the period of May 1, 2025 through April 30, 2026.
3. Cornerstone program, Memorandum of Understanding No. 25-476, for the in-kind service value of $136,585, for the period of November 1, 2025 through October 31, 2026.
4. Lantern Woods program, Memorandum of Understanding No. 25-477, for the in-kind service value of $6,995, for the period of December 1, 2025 through November 30, 2026.
(Presenter: Jennifer Alsina, Assistant Director, 252-5142)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
Foster Sustainable Development Through Strategic Partnerships.
FINANCIAL IMPACT
This item does not impact Discretionary General Funding (Net County Cost). The in-kind supportive services, valued at a total of $176,254, are funded by Mental Health Services Act (Behavioral Health Services Act effective July 1, 2026) and Federal Financial Participation Medi-Cal funds. Adequate appropriation and revenue have been included in the Department of Behavioral Health’s (DBH) 2025-26 budget and will be included in the 2026-27 recommended budget.
BACKGROUND INFORMATION
DBH is responsible for providing mental health and substance use disorder (SUD) services to San Bernardino County (County) residents experiencing severe mental illness and/or SUD.
The Housing Authority of the County of San Bernardino (HACSB) receives the Continuum of Care (CoC) grant from the United States Department of Housing and Urban Development (HUD), which requires a 25% direct services match. The match requirement of in-kind services has the ability to be satisfied by HACSB contracting with the County and/or community-based organizations (CBOs). HACSB uses the CoC grant funding to support rental assistance through the Project Gateway, Laurelbrook Estates, Cornerstone, and Lantern Woods housing facilities. These facilities provide services to the most vulnerable, chronically homeless individuals and families residing in the county.
HACSB has contracted with DBH to provide the total 25% required CoC grant local match since May 2003. These Memoranda of Understanding (MOU) between HACSB and DBH establish DBH’s responsibility for providing in-kind supportive services on behalf of HACSB. The DBH in-kind supportive services include, but are not limited to, case management, employment assistance, housing navigation and life skills, mental health services, SUD treatment, and transportation.
On June 18, 2025 (Item Nos. 24 and 25), the Board of Supervisors (Board) approved MOUs with HACSB for the provision of CoC In-Kind Services, including non-standard terms, for clients in the following programs: Cornerstone, Lantern Woods, Laurelbrook Estates, and Project Gateway.
On October 21, 2025 (Item No. 17), the Board approved Amendment No. 1 to the four MOUs listed in the Recommendation, establishing a total in-kind match value of $1,688,662, comprised of in-kind direct and indirect services provided by DBH and DBH-subcontractors.
Subsequently, HUD determined that under the CoC grant terms, HACSB must contract directly with DBH and the CBOs providing in-kind services, rather than through DBH subcontracts.
Approval of Amendment No. 2 removes DBH subcontracting language to ensure compliance with the CoC grant requirements and revises the MOUs to reflect only the in-kind service value match attributable to the direct services DBH provides. The revised in-kind service match provided by DBH across the four MOUs represents a portion (between 5% and 17%) of the required 25% CoC grant match. HACSB will seek the remaining match amount by directly contracting with CBO service providers, consistent with HUD requirements.
DBH was notified by HACSB the need for Amendment No. 2 to correct the in-kind value match rates in December 2025. Approval of this item will allow DBH to continue providing upfront in-kind services to an average of 286 clients per budget year participating in the four rental assistance programs, in compliance with the CoC grant in-kind match requirements. Further delay in approval may impede providers’ ability to pay rental subsidies and could result in the MOUs expiring at an incorrect rate.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by Behavioral Health (Diana Barajas, Administrative Supervisor I, 388-0862) on January 22, 2026; County Counsel (Charles Phan, Deputy County Counsel, 387-5455) on February 5, 2026; and County Finance and Administration (Iliana Rodriguez, Administrative Analyst, 386-8392) on February 6, 2026.