REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
May 19, 2026
FROM
ROB GILLIAM, Acting Director, Community Development and Housing Department
SUBJECT
Title
Capital Improvement Program Project for the Remodel at 1386 East Highland Avenue in San Bernardino
End
RECOMMENDATION(S)
Recommendation
1. Approve Capital Improvement Program Project for the Remodel at 1386 East Highland Avenue in San Bernardino, in the amount of $2,852,056.
2. Authorize the Auditor-Controller/Treasurer/Tax Collector to post the necessary budget adjustments for the Capital Improvement Program Project for the Remodel at 1386 East Highland Avenue in San Bernardino to the 2025-26 budget as detailed in the Financial Impact section (Four votes required).
(Presenter: Rob Gilliam, Acting Director, 382-3983)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
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
Approval of the recommendations will not result in the use of additional Discretionary General Funding (Net County Cost). The Capital Improvement Program (CIP) Project to remodel the former Days Inn at 1386 East Highland Avenue in San Bernardino, at a cost not to exceed $2,852,056, will be funded by $2,509,386 from the Homeless Outreach and Engagement Services Reserve and $342,670 of Encampment Resolution Funds (ERF), which are provided by the Office of Homeless Services (OHS) working in partnership with the Community Development and Housing Department (CDH).
OHS and the Project and Facilities Management Department (PFMD) request the following adjustments to the 2025-26 budget:
|
Funds Center |
Commitment Item |
Description |
Action |
Amount |
WBSE |
|
1000 |
37008791 |
Fund Balance Assigned - Homeless Outreach Services Reserve |
Decrease |
$2,509,386 |
N/A |
|
1161161000 |
55305030 |
Operating Transfers Out |
Increase |
$2,509,386 |
N/A |
|
6210002499 |
55405014 |
Other Charges Transfers Out |
Decrease |
$342,670 |
N/A |
|
6210002499 |
55305030 |
Operating Transfers Out |
Increase |
$342,670 |
N/A |
|
7700003100 |
54304030 |
Structures & Improvements to Structures |
Increase |
$2,852,056 |
10.10.1987 |
|
7700003100 |
40909975 |
Operating Transfers In |
Increase |
$2,852,056 |
10.10.1987 |
BACKGROUND INFORMATION
The County is pursuing a strategy to expand its emergency shelter beds and other forms of interim and permanent housing to address homelessness. As part of the strategy, CDH is identifying areas that are under-resourced in sheltering options and evaluating opportunities to increase shelter beds and housing through capital projects.
The City of San Bernardino (City) has 1,525 unsheltered homeless individuals per the 2025 Point-In-Time Homeless Count (PITC), which is almost 30% of the countywide unsheltered count and an increase of 8% from the 2024 PITC. The City has been identified as an under-resourced area that needs additional shelter beds to address its large unsheltered population. CDH has been evaluating opportunities in the City to address this need. Concurrently, OHS has pursued intensive outreach and engagement of homeless individuals and families residing in encampments along the I-210 corridor in the cities of Highland and San Bernardino.
CDH identified the Days Inn by Wyndham San Bernardino Hotel owned by Sahkar Hospitality Group, an approximately 14,633-square foot, two-story building with 50 units located at 1386 East Highland Avenue, in San Bernardino (Property) as viable for conversion to permanent housing. The Property is located within two miles of the downtown San Bernardino area and is conveniently located near County resources and multiple homeless service organizations.
On June 10, 2025 (Item No. 100), the Board of Supervisors (Board) approved a Purchase and Sale Agreement to acquire the Property.
With the acquisition of the Property completed, the next step is rehabilitation essential to its conversion into permanent housing, ensuring the facility complies with all applicable health and safety standards. The acquisition and recommended rehabilitation of the Property supports a joint effort between the Cities of Highland and San Bernardino, the County, and the Yuhaaviatam of San Manuel Nation to address large-scale homeless encampments along the I-210 corridor and increase access to permanent housing for eligible individuals with disabilities. The Yuhaaviatam of San Manuel Nation plans to engage in environmental restoration activities associated with the rehabilitation of former encampment sites.
On March 11, 2025 (Item No. 28), the Board approved the Encampment Resolution Funding from the California Department of Housing and Community Development.
Approval of the recommendations will allow PFMD to assist CDH with the planning and development of the Property and to manage the CIP Project.
PROCUREMENT
Selection of the contractors for the CIP Project will be in accordance with the County’s procurement policies and procedures.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on April 7, 2026; Auditor-Controller, Treasurer, Tax Collector (Yusuf Singleton, General Accounting Manager, 382-3035) on May 5, 2026; Office of Homeless Services (Marcus Dillard, Chief of Homeless Services, 501-0644) on May 7, 2026; Project and Facilities Management Department (Moe Yousif, Interim Director, 387-5000) on May 11, 2026; and County Finance and Administration (Yael Verduzco, Principal Administrative Analyst, 387-5285, and Paul Garcia, Administrative Analyst, 387-4205) on May 4, 2026.