REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
November 3, 2026
FROM
JOSHUA DUGAS, Director, Department of Behavioral Health
SUBJECT
Title
Memoranda of Understanding with the Housing Authority of the County of San Bernardino for the Continuum of Care In-Kind Service Value Match
End
RECOMMENDATION(S)
Recommendation
Approve Memoranda of Understanding with the Housing Authority of the County of San Bernardino, including non-standard terms, for the Continuum of Care in-kind service value match in the amount of $190,355 for the following programs:
1. Project Gateway, for the in-kind service value match of $4,640, effective June 1, 2026 through May 31, 2027.
2. Laurelbrook Estates for the in-kind service value match of $30,648, effective August 1, 2026 through July 31, 2027.
3. Lantern Woods for the in-kind service value match of $7,555, effective January 1, 2027 through December 31, 2027.
4. Cornerstone for the in-kind service value match of $147,512, effective December 1, 2026 through November 30, 2027.
(Presenter: Joshua Dugas, Director, 252-5142)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote and Fulfill the Countywide Vision.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The total in-kind service value match of $190,355 is funded by Behavioral Health Services Act and Federal Financial Participation Medi-Cal funds. Adequate appropriation and revenue have been included in the Department of Behavioral Health’s (DBH) 2026-27 budget and will be included in the 2027-28 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) is an awardee of the Continuum of Care (CoC) grant from the United States Department of Housing and Urban Development (HUD), which requires a 25% direct services match. This match requirement may be satisfied by HACSB contracting with a combination of the County and/or community-based organizations. HACSB has contracted with DBH to provide a portion of the 25% required CoC grant local match, through various Memoranda of Understanding (MOUs), since May 2003.
HACSB uses the CoC grant funding to support rental assistance through Project Gateway, Cornerstone, Laurelbrook Estates, and Lantern Woods housing facilities. These facilities provide services to the most vulnerable, chronically homeless individuals and families residing in the county.
DBH in-kind supportive services include, but are not limited to, case management, employment assistance, housing navigation, life skills, mental health services, SUD services, and transportation. Throughout the term of the MOUs, rental assistance for a combined total of 286 families is available. The MOUs between HACSB and DBH establish DBH’s responsibility for providing in-kind supportive services on behalf of HACSB.
The MOUs contain the following non-standard terms:
1. The MOUs do not require HACSB to meet the County’s insurance standards as required pursuant to County Policy 11-07.
• The County Policy requires contractors to carry appropriate insurance at limits and under conditions determined by the County’s Risk Management Department and set forth in the County standard contract.
• Potential Impact: The MOUs do not include County standard insurance requirements. This means that the County has no assurance that HACSB will be financially responsible for claims that may arise under the MOUs, which could result in expenses to the County that exceed the total MOU amounts.
2. The County is required to indemnify HACSB.
• The County standard contract does not include any indemnification or defense by the County of a contractor.
• Potential Impact: By agreeing to indemnify HACSB, the County could be contractually waiving the protection of sovereign immunity. Claims that may otherwise be barred against the County, time limited, or expense limited could be brought against HACSB without such limitations and the County could be responsible to defend and reimburse HACSB for costs, expenses, and damages, which could exceed the total MOU amounts.
DBH is requesting retroactive approval of the recommended MOUs in Recommendations No. 1 and No. 2. These dates were established to accommodate extensions to the existing service provider contracts. The revised dates reflect the timelines necessary to meet HUD’s requirements in coordination with DBH. The item is being presented at this time as HUD notified HACSB of the new in-kind value match rates in September 2026. This is the first available date following the required operational, administrative, and legal reviews for presentation to the Board of Supervisors. Approval of this item will allow DBH to continue to provide in-kind services for participants in the programs.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by Behavioral Health (Diana Barajas, Administrative Supervisor I, 388-0862) on September 28, 2026; County Counsel (Dawn Martin, Deputy County Counsel, 387-5455) on October 6, 2026; Risk Management (Stephanie Pacheco, Staff Analyst, 388-9039) on October 21, 2026; and County Finance and Administration (Lizveth Varela, Administrative Analyst, 387-4883) on October 13, 2026.