REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
November 3, 2026
FROM
MARCUS DILLARD, Chief of Homeless Services, Office of Homeless Services
SUBJECT
Title
Budget Adjustments for Transitional Rent Services Under the Community Supports Program
End
RECOMMENDATION(S)
Recommendation
Authorize the Auditor-Controller/Treasurer/Tax Collector to post the necessary budget adjustments to reallocate $2,374,630, as detailed in the Financial Impact section, to the Office of Homeless Services 2026-27 budget for the Kaiser Foundation Health Plan, Inc. Transitional Rent services under the Community Supports program (Four votes required).
(Presenter: Marcus Dillard, Chief of Homeless Services, 501-0644)
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 additional Discretionary General Funding (Net County Cost). The cost of providing Transitional Rent and related services will be fully reimbursed via the Community Supports program Agreement No. 26-492 (Agreement) with Kaiser Foundation Health Plan, Inc. (KFHP).
The Office of Homeless Services (OHS) requests the following adjustments to its 2026-27 budget:
|
Fund Center |
Commitment Item |
Description |
Action |
Amount |
|
6210002905 |
52002000 |
Operating Expenses - Services & Supplies |
Decrease |
$229,923 |
|
6210002905 |
53003205 |
Public Assistance |
Decrease |
$2,144,707 |
|
6210002905 |
55305030 |
Operating Transfer Out |
Increase |
$2,374,630 |
|
6210141000 |
52002000 |
Operating Expenses - Services & Supplies |
Increase |
$229,923 |
|
6210141000 |
53003205 |
Public Assistance |
Increase |
$2,144,707 |
|
6210141000 |
40909975 |
Operating Transfers In |
Increase |
$2,374,630 |
BACKGROUND INFORMATION
OHS coordinates San Bernardino County’s (County) homeless services system, including housing navigation, rental assistance, and partnerships with healthcare providers to improve housing stability and health outcomes for individuals experiencing homelessness.
KFHP is a licensed Medi-Cal managed care plan that participates in California’s Community Supports program (formerly known as In Lieu of Services). Community Supports program services are medically appropriate, cost-effective alternatives to State Plan covered services and are approved by the California Department of Health Care Services (DHCS).
On June 9, 2026 (Item No. 52), the Board of Supervisors (Board) approved the Agreement with KFHP for the provision of Transitional Rent services under the Community Supports program to eligible Kaiser Medi-Cal members, and authorized related 2026-27 budget adjustments. The Agreement has an initial term of January 1, 2026 through December 31, 2026, with four automatic one-year renewals as provided in the Agreement. Under the Agreement, OHS, in partnership with the Department of Behavioral Health, provides short-term rental assistance and related housing stabilization services to eligible Kaiser Medi-Cal members experiencing homelessness or housing instability. OHS initially funds eligible services and submits claims to KFHP for reimbursement.
At the time the Agreement and related budget adjustments were approved on June 9, 2026 (Item No. 52), funding was included in an OHS Special Revenue Fund (Funds Center 6210002905) dedicated to this program, as it was anticipated this fund would directly pay for the administration of the KFHP Transitional Rent services. Following approval of the Agreement, OHS determined that as KFHP funding would be received on a reimbursement basis, financial activity must flow through the County’s primary operating fund to accommodate differences in timing of expense payments and revenue receipts inherent in a reimbursement-funded program. This adjustment does not increase the previously approved budget; it transfers the existing appropriation to the fund center from which expenditures and related reimbursements will be administered.
Reimbursement for Transitional Rent services will be based on the lesser of charges billed by OHS or the reimbursable ceiling established by the U.S. Department of Housing and Urban Development (HUD). The HUD ceiling is determined using baseline Small Area Fair Market Rents (SAFMRs), which are calculated by ZIP code and unit size. The current reimbursable limit is 100% of the SAFMR. Reimbursement for administrative costs is separately subject to the applicable DHCS administrative fee structure for the Southern California Region.
Approval of the requested budget adjustments will transfer the previously approved $2,374,630 appropriation to fund center 6210141000, so that OHS can administer program expenditures and record related KFHP reimbursements in the appropriate fund center. The adjustment does not change the total amount previously approved for the Kaiser Transitional Rent services under the Community Supports program.
PROCUREMENT
N/A
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on September 4, 2026; Auditor-Controller/Treasurer/Tax Collector (Charlene Huang, Auditor-Controller Manager, 382-7022) on September 14, 2026; and County Finance and Administration (Paul Garcia, Administrative Analyst, 386-8392) on October 23, 2026.