REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
November 3, 2026
FROM
ROB GILLIAM, Acting Director, Community Development and Housing Department
SUBJECT
Title
Amendments to the Revocable Grant Agreement and the Regulatory Agreement with Water of Life Community Church for the CityLink Campus in the City of Fontana
End
RECOMMENDATION(S)
Recommendation
1. Approve Amendment No. 1 to Revocable Grant Agreement No. 24-118 with Water of Life Community Church, to extend the deadline for completion of construction of the Permanent Shelter Improvements, for the CityLink Campus Project, from January 1, 2028, to December 31, 2029.
2. Approve Amendment No. 1 to Regulatory Agreement with Water of Life Community Church, to extend the deadline for Completion of Construction of the Permanent Shelter Improvements, for the CityLink Campus Project, from January 1, 2028, to December 31, 2029.
3. Authorize the Chief Executive Officer, Chief Operating Officer, Deputy Executive Officer, or the Director of the Community Development and Housing Department to execute and make any necessary non-substantive amendments to Revocable Grant Agreement No. 24-118 and the Regulatory Agreement, subject to review by County Counsel.
4. Direct the Director of the Community Development and Housing Department to transmit any subsequent, non-substantive amendments to Revocable Grant Agreement No. 24-118 and the Regulatory Agreement to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Rob Gilliam, Acting Director, 382-3983)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote and Fulfill the Countywide Vision.
Improve County Government Operations.
Operate in a Fiscally-Responsible and Business-Like Manner.
Foster Sustainable Development Through Strategic Partnerships.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
This item will not result in the use of additional Discretionary General Funding (Net County Cost). Funding for the CityLink Campus Project (Project) was previously provided through the San Bernardino County Housing Development Grant Fund (Fund), which was established as part of the San Bernardino County (County) Homeless Initiatives Spending Plan, approved by the Board of Supervisors (Board) on March 28, 2023 (Item No. 21).
BACKGROUND INFORMATION
On October 3, 2023 (Item No. 17), the Board adopted Resolution No. 2023-181 committing funding to the Project. Subsequently, on February 6, 2024 (Item No. 19), the Board approved a $5,000,000 Revocable Grant Agreement (No. 24-118) with Water of Life Community Church (WOL). The Revocable Grant Agreement included the Regulatory Agreement as Exhibit E, which was subsequently executed and recorded on April 2, 2024, establishing the requirements and restrictions governing the Project.
The Project is a mixed-use campus located at the southwest corner of Citrus Avenue and Arrow Boulevard in the City of Fontana (City) and designed to transition individuals and families from homelessness into safe, stable, permanent housing. The campus includes three integrated components that provide both housing and supportive services. Two of the three components have been completed and are operational. Component one consists of a supportive services building offering case management, counseling, job training, financial literacy, and food distribution and has been operational since summer 2024. Component two involved the development and installation of 20 travel trailers used for temporary emergency shelter. These units were completed and became fully operational in December 2024. Component three consists of constructing a mixed-use building, referred to as Permanent Shelter Improvements, that will include 30 units of transitional shelter, ultimately replacing the temporary trailers. Under the existing agreements, Component three must be completed by January 1, 2028.
The total Project cost is approximately $30 million. To date, WOL has completed approximately $17 million in improvements, covering Components one, two, and a portion of Component three. To close the $13 million financing gap, WOL is actively seeking private, philanthropic, and congregational donations consistent with the original Project plan.
WOL and the City have taken steps to improve the Project’s financial stability. On September 8, 2026, the Fontana City Council unanimously approved a land-swap agreement with WOL. The Purchase and Sale Agreement (PSA) provides for a 90-day due diligence period, which is anticipated to conclude in late December 2026, The PSA provides for an exchange of property between WOL and City that, once completed, will eliminate the $3,040,000 land debt WOL owes the City for the Project property. Although this approach was not part of the original Project plan, the transaction is expected to reduce the Project’s debt, strengthen its overall financial position, and address concerns raised by lenders.
On July 8, 2026, WOL requested an extension for completion of construction of the Permanent Shelter Improvements, Component three from January 1, 2028, to December 31, 2029. This extension would allow additional time to restructure the existing debt and secure remaining financing. All permits for the Permanent Shelter Improvements have been obtained. Once the remaining financing is in place, construction is expected to take approximately 14 months and be completed no later than December 31, 2029.
Based on the progress completed to date and WOL’s ongoing efforts to secure the remaining financing, CDH recommends approval of the amendments to extend the deadline for the Completion of Construction of the Permanent Shelter Improvements from January 1, 2028, to December 31, 2029. All other terms of the Revocable Grant Agreement and Regulatory Agreement will remain in full force and effect.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on October 16, 2026; and County Finance and Administration (Paul Garcia, Administrative Analyst, 387-4205) on October 19, 2026.