REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
November 17, 2026
FROM
JOSHUA DUGAS, Director, Department of Behavioral Health
SUBJECT
Title
Amendment to Memorandum of Understanding with Redlands Supportive Housing, L.P. for Rental Assistance at Liberty Lane
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 1 to Memorandum of Understanding No. 22-86 with Redlands Supportive Housing, L.P., for the provision of specialty mental health and substance use disorder supportive services, including case management, to update contract language, add the provision of rental assistance for individuals with zero verifiable income staying at Liberty Lane in Redlands, a permanent supportive housing development, and add an amount not to exceed $321,325, for the period of November 17, 2026 through June 30, 2031, with no change to the agreement period of February 8, 2022 through February 7, 2042.
(Presenter: Joshua Dugas, Director, 252-5142)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote and Fulfill the Countywide Vision.
Operate in a Fiscally-Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The recommended agreement amount of $321,325 is funded solely through the Behavioral Health Services Act (BHSA). The Department of Behavioral Health (DBH) will provide rental assistance for eligible DBH clients with zero income. Adequate appropriation and revenue have been included in DBH’s 2026-27 budget and will be included in future budgets.
BACKGROUND INFORMATION
DBH is responsible for providing mental health and/or substance use disorder (SUD) services to San Bernardino County (County) residents who are experiencing severe mental illness and/or SUD. Liberty Lane is a permanent supportive housing development owned by Redlands Supportive Housing, L.P., consisting of 80 units for homeless and at-risk veterans and their families. Through the BHSA Housing Program, this subsidy provides funding for permanent supportive housing for individuals with mental illness who are homeless and/or at risk of becoming homeless, with no limit on length of stay and is linked to on-site and off-site supportive housing services.
Liberty Lane and DBH collaborate using the County Coordinated Entry System to identify eligible households to access the permanent supportive housing units and provide linkages for SUD and mental health services to all residents. Supportive services help the eligible individual retain housing, support recovery and resiliency, and help maximize the ability to live and work in the community.
On February 8, 2022 (Item No. 23), the Board of Supervisors (Board) approved the 20-year non-financial Memorandum of Understanding (MOU) with Redlands Supportive Housing, L.P., for the provision of specialty mental health and substance use disorder supportive services, including case management, at Liberty Lane in Redlands, a permanent supportive housing development, for the period of February 8, 2022 to February 7, 2042
Of Liberty Lane’s 80 total units, nine are designated as Special Needs Housing Program (SNHP) units that will receive DBH rental assistance. Tenants who are placed at Liberty Lane and qualify for this assistance are individuals who have zero verifiable income. DBH determines the applicable rental-assistance amount using income limits based on 30% of the Area Median Income through the U.S. Department of Housing and Urban Development. Based on these income limits, DBH projects rental assistance for eight one-bedroom units and one two-bedroom units and is to assume a 10% annual increase for a total cost not to exceed $321,325 over a five-year period. This support is intended to provide housing stability while tenants work towards obtaining income and benefits.
Since the agreement’s inception, construction of Liberty Lane was completed in January of 2026. As a result, this is the first year this rental subsidy is being paid out to Liberty Lane, and it is intended that the rental subsidy will continue to be paid through June 30, 2031, as shown through Exhibit I. Thereafter, depending on future funding and the success of the BHSA Housing Program, it is anticipated that rental assistance will continue to be paid out to Liberty Lane. This approach preserves the ability to return to the Board every five years throughout the life of the agreement, should funding become available and future amendments be needed.
Approval of this amendment will provide rental assistance to participants with zero verifiable income who are placed in the SNHP units, and update contract language to include payment provisions. This aims to prevent loss of housing while occupants are connected to benefits, income, behavioral health services, and other linkages necessary for long-term housing stability.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by Behavioral Health (Diana Barajas, Administrative Supervisor I, 383-3940) on October 20, 2026; County Counsel (Dawn Martin, Deputy County Counsel, 387-5455) on November 5, 2026; and County Finance and Administration (Lizveth Varela, Administrative Analyst, 387-4883) on November 3, 2026.