REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
August 18, 2026
FROM
ROB GILLIAM, Acting Director, Community Development and Housing Department
SUBJECT
Title
Funding Commitment Resolution for the City of San Bernardino’s Homeless Outreach Prevention and Education Campus
End
RECOMMENDATION(S)
Recommendation
1. Waive Section 8 of the San Bernardino County Housing Development Grant Fund Guidelines to permit a total project award exceeding $5,000,000, subject to the conditions stated in the Resolution and funding agreement.
2. Adopt Resolution conditionally committing up to $11,000,000 as a one-time capital contribution to the City of San Bernardino, to develop the San Bernardino Homeless Outreach Prevention and Education Campus, a regional low-barrier homeless and recuperative care navigation center with 200 interim beds and onsite supportive services, effective August 18, 2026 through August 18, 2027, subject to Board of Supervisors approval of the funding agreement and all related documents.
3. Direct the Community Development and Housing Department to complete financial, legal, operational, and project-readiness due diligence; negotiate the funding agreement, regulatory agreement, regional-access terms, and San Bernardino County referral protocols with the City of San Bernardino; and return to the Board of Supervisors for approval before any County funds are obligated and disbursed.
(Presenter: Rob Gilliam, Acting Director, 382-3983)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote and Fulfill the Countywide Vision.
Create, Maintain and Grow Employment Opportunities and Economic Value in the County.
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 additional Discretionary General Funding (Net County Cost). Recommendation No. 2 will conditionally commit an amount not to exceed $11,000,000 from San Bernardino County’s (County) Housing Development Grant Fund (HDGF) to the City of San Bernardino (City). Budget adjustments are not requested at this time. Before any County funds are obligated, encumbered, or disbursed, the Community Development and Housing Department (CDH) will return to the Board of Supervisors (Board) for approval of the funding and regulatory agreements, project budget and funding sources, and any required budget adjustments.
BACKGROUND INFORMATION
On October 3, 2023 (Item No. 16), the Board approved Resolution No. 2023-180, conditionally committing $3,000,000 in HDGF to support development of the City’s San Bernardino Homeless Outreach Prevention and Education Campus (Project). The requisite conditions stated in Resolution No. 2023-180 were not satisfied before the funding commitment expired on September 30, 2024 so no County funds were obligated or disbursed.
The Project consists of redeveloping the former School of Hope, located at 796 E. 6th Street in the City, into a comprehensive service center designed to address the needs of individuals experiencing homelessness. The Project will create 200 interim housing beds, consisting of 180 congregate and 20 non-congregate beds. Under the Project's service model, up to 70 of these beds may be utilized for recuperative care services based on participant needs. The Project will also provide medical and employment services; behavioral health linkages; case management; and assistance in obtaining public benefits, income support, and permanent housing placement. According to the 2026 Point-in-Time Count, the City recorded the county's largest population of individuals experiencing homelessness, including 737 unsheltered individuals, underscoring the ongoing need for expanded shelter capacity, supportive services, and housing resources.
The original funding request submitted to the County in 2023 was based on conceptual planning assumptions and preliminary cost estimates. Since that time, the City has completed additional design development, procured a general contractor, and obtained more detailed construction pricing, resulting in a more accurate assessment of Project costs.
Construction of the Project commenced in February 2026. As the Project progressed, the City refined the scope, site configuration, operational model, and supporting infrastructure to better align the facility with its long-term delivery objectives of meeting the needs of individuals experiencing homelessness and enhancing service delivery. These refinements, combined with delays associated with the modular construction process, including 60 factory-built modular units constructed on 40-foot and 60-foot structural steel chassis that collectively form the facility, increased construction costs resulting from inflation, labor and material cost escalation, supply chain disruptions, and other evolving market conditions, significantly increased the overall development cost.
The City's updated funding request, received on May 4, 2026, estimates the cost of the Project at $36,215,225 and identifies a funding gap of approximately $11,000,000, as summarized below:
|
Funding Source |
Amount |
|
City of San Bernardino Funding Sources |
|
American Rescue Plan Act Funds |
$11,344,785 |
|
Community Development Block Grant |
$4,955,506 |
|
HOME Investment Partnerships Program-American Rescue Plan (Construction) |
$4,299,671 |
|
Inland Empire Health Plan |
$1,500,000 |
|
Low- and Moderate-Income Housing Funds |
$1,354,000 |
|
Homeless Housing, Assistance and Prevention Program Round 3 |
$808,385 |
|
HOME Investment Partnerships Program-American Rescue Plan (Administration) |
$240,000 |
|
Molina Healthcare |
$300,000 |
|
Dignity Health |
$250,000 |
|
City General Fund |
$92,878 |
|
Loma Linda University Health |
$70,000 |
|
San Bernardino County Gap Funding Source |
|
Housing Development Grant Fund |
$11,000,000 |
|
Total Project Funding Sources |
$36,215,225 |
On May 4, 2026, in response to the City’s updated funding request, County leadership provided direction that the Project operate as a regional navigation center and that the City negotiate in good faith with the County regarding regional access and coordination. Consistent with this direction, the proposed Resolution directs CDH to negotiate funding and regulatory agreements (Agreements) with the City that establish the operating model and framework, access and coordination requirements, and referral protocols for the Project as a regional navigation center. The Agreements will be presented to the Board for review and approval at a future date.
The Agreements will include eligible use restrictions for County funds, reimbursement and documentation requirements, reporting obligations, audit and inspection rights, insurance and indemnification provisions, and other terms required by the County and applicable law. They will also incorporate negotiated provisions governing the Project’s operation as a regional navigation center, including regional access and utilization, coordination with the County, referral protocols, use of the County’s Coordinated Entry System for referrals, bed availability protocols, and associated performance and reporting requirements.
The County’s funding commitment is conditional and does not authorize the disbursement, reimbursement, advancement, or release of County funds. Prior to any funding availability, all modular structures must be delivered to and installed at the Project site. The City must provide documentation acceptable to the County demonstrating such installation and permit verification through inspection, documentation review, certification, or other method acceptable to the County.
County funding will be limited to eligible capital development costs. Operating costs, supportive services, maintenance, utilities after Project opening, financing costs, operating reserves, and construction cost overruns will not be eligible for County funding unless separately approved by the Board. The Agreements will ensure that the County is not responsible for operating deficits, maintenance costs, any funding shortfall resulting from a reduction, delay, or discontinuation of California Advancing and Innovating Medi-Cal funding or any other operating revenue, or the continued operation of the Project.
The Project also aligns with the Homelessness Ad Hoc Committee Housing Guidelines, approved by the Board on January 23, 2024 (Item No. 29), by advancing the County's strategic investment in regional homeless housing infrastructure through expanded access to interim housing, navigation services, and supportive resources for individuals experiencing homelessness throughout San Bernardino County.
The County's funding will be provided as a forgivable loan bearing 0% interest, subject to a 15-year affordability and use covenant secured by a deed of trust. Section 8 of the HDGF Guidelines limits funding awards to $5,000,000 per project. Accordingly, CDH requests that the Board waive Section 8 of the HDGF Guidelines to authorize an allocation exceeding this threshold based on the Project's regional significance, scale, and anticipated public benefit.
The proposed Resolution will document the conditional funding commitment and related conditions. This item will establish the maximum potential County contribution and authorize staff to complete due diligence and negotiate the Agreements.
PROCUREMENT
On August 9, 2023, CDH released a Fund Request Form (FRF) with the guidelines for the Housing Development Grant Fund. On August 30, 2023, the City submitted an FRF, which was evaluated against the program's eligibility criteria and funding priorities to ensure the proposed Project met the HDGF requirements and objectives. On May 4, 2026, the City submitted an updated funding request reflecting the Project's current funding needs. CDH reviewed the updated request and determined that the Project continues to meet the HDGF eligibility requirements and program objectives, making it appropriate for continued consideration for HDGF funding.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on July 29, 2026; and County Finance and Administration (Paul Garcia, Administrative Analyst, 386-8392) on August 3, 2026.