REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
May 19, 2026
FROM
MARCUS DILLARD, Chief of Homeless Services, Office of Homeless Services
SUBJECT
Title
Budget Adjustment to Establish a Capitalized Operating Subsidy Reserve Using Homeless Housing, Assistance and Prevention Program Round 3 and Round 4 County Youth Set-Aside Funds
End
RECOMMENDATION(S)
Recommendation
Authorize the Auditor-Controller/Treasurer/Tax Collector to post the necessary budget adjustments, as detailed in the Financial Impact section, to the Office of Homeless Services 2025-26 budget, to establish and fund a Capitalized Operating Subsidy Reserve in the total amount of $623,512 (Four votes required).
(Presenter: Marcus Dillard, Chief of Homeless Services, 501-0610)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote and Fulfill the Countywide Vision.
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 this item will not result in the use of Discretionary General Funding (Net County Cost). The Capitalized Operating Subsidy Reserve (COSR), in an amount not to exceed $623,512, will be funded by the State of California’s Homeless Housing, Assistance and Prevention (HHAP) Program County Youth Set-Aside Round 3 and Round 4 funds in the amounts of $207,835 and $415,677, respectively. These funds are administered by the California Department of Housing and Community Development (HCD).
The Office of Homeless Services (OHS) requests the following adjustments to its 2025-26 budget:
|
Fund Center |
Commitment Item/GL Account |
Description |
Action |
Amount |
|
6210002477 |
53003205 |
Public Assistance |
Decrease |
$207,835 |
|
6210002477 |
55305030 |
Operating Transfer Out |
Increase |
$207,835 |
|
6210002485 |
53003205 |
Public Assistance |
Decrease |
$415,677 |
|
6210002485 |
55305030 |
Operating Transfer Out |
Increase |
$415,677 |
|
6210002911 |
53003205 |
Public Assistance |
Increase |
$623,512 |
|
6210002911 |
40909975 |
Operating Transfer In |
Increase |
$623,512 |
BACKGROUND INFORMATION
OHS administers housing programs and funding intended to prevent and reduce homelessness throughout San Bernardino County (County). Among these is HHAP, which provides block grant funding to local jurisdictions to support housing interventions, regional coordination, and services for individuals and families experiencing homelessness.
Youth aged 18 to 24 often face barriers to stable housing and employment as they transition into adulthood. Many youth exiting foster care, unstable living environments, or other system involvement require targeted housing support while pursuing employment or workforce training opportunities. Recognizing these unique challenges, a portion of each round of HHAP funding is designated as a County Youth Set-Aside, which supports housing and services for youth experiencing or at risk of homelessness. This item recommends the use of such funds from HHAP Rounds 3 and 4 to provide housing assistance for individuals aged 18 to 24 or families with at least one member aged 12 to 24.
To support program financial stability, OHS will establish a COSR using HHAP Youth Set-Aside funds in an interest-bearing account. A COSR is a dedicated account intended to support ongoing operational needs of the County’s housing efforts to address homelessness, including transitional programs that help participants progress to permanent housing. Funds are deposited into the reserve and drawn down over time to pay rental subsidies and housing stabilization costs for participating households. OHS is responsible for expending HHAP Round 3 funds by June 30, 2026, and Round 4 funds by June 30, 2027, and will submit progress reports to HCD detailing services provided, clients served, and expenditures.
This item is limited to establishing the funding mechanism through the COSR, which will be supported by both HHAP Round 3 and Round 4 Couty Youth Set-Aside funds to support eligible program costs, including rental subsidies and housing stabilization assistance. The COSR will obligate these funds to a transitional workforce housing program at Echo Apartments, located in the City of San Bernardino, before June 30, 2026.
OHS will recommend approval of a contract with the Housing Authority of the County of San Bernardino (HACSB) to the Board of Supervisors (Board) at a future date to support a transitional workforce housing program at Echo Apartments. Echo Apartments is a multifamily residential housing development consisting of 2-bedroom, 3-bedroom, and 4-bedroom units which HACSB operates and will designate for participation in this program. The program provides up to 24 months of transitional housing combined with workforce-focused case management and supportive services for households that include a Transitional Age Youth member. Participants will develop individualized housing stability and workforce plans focused on increasing income, securing employment, and preparing for transition to permanent housing.
On June 28, 2022 (Item No. 43), the Board adopted the HHAP Round 3 Local Homelessness Action Plan and authorized the submission of HHAP Round 3 grant applications in the amount of $3,641,750 for the County and $3,901,875 for the San Bernardino City and County Continuum of Care (SBC CoC) from the State.
On November 15, 2022 (Item No. 28), the Board approved and authorized the submission of the HHAP Round 4 grant applications to the State for the SBC CoC in the estimated amount of $3,901,874, and to the County in the estimated amount of $3,641,749.
On May 9, 2023 (Item No. 21), the Board accepted the HHAP Round 4 grant award in the amount of $4,156,768.02 for the County and $4,430,501.22 for the SBC CoC from the State.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on March 23, 2026; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022) on April 8, 2026; County Finance and Administration (Paul Garcia, Administrative Analyst, 386-8392) on April 23, 2026.