REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 1, 2026
FROM
ROB GILLIAM, Acting Director, Community Development and Housing Department
SUBJECT
Title
Amendment to Homekey Program Indemnification Agreement with Family Assistance Program
End
RECOMMENDATION(S)
Recommendation
1. Approve Amendment No. 4 to Homekey Program Indemnification Agreement No. 25-634 with Family Assistance Program, extending the construction completion deadline from September 3, 2026 to September 30, 2026, and authorizing additional extensions totaling up to 90 days, if necessary, to complete construction, with no changes to the agreement term of August 19, 2025 through August 18, 2057 or the agreement amount of $5,826,222.
2. Authorize the Chief Executive Officer, Assistant Executive Officer, or Director of the Community Development and Housing Department to execute any subsequent non-substantive amendments to Homekey Program Indemnification Agreement No. 25-634 and any documents required to implement the amendments, subject to review by County Counsel.
3. Direct the Director of the Community Development and Housing Department to transmit any subsequent non-substantive amendments to Homekey Program Indemnification Agreement No. 25-634 to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Rob Gilliam, Acting Director, 382-3983)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Promote and Fulfill the Countywide Vision.
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) as Amendment No. 4 to Homekey Program Indemnification Agreement No. 25-634 (Indemnification Agreement) with Family Assistance Program (FAP) is non-financial in nature.
BACKGROUND INFORMATION
The Community Development and Housing Department (CDH) develops and administers programs and funding that support affordable housing, housing preservation, and community development throughout San Bernardino County (County). As part of these efforts, CDH coordinates the County’s participation in the Homekey Program (Homekey), a state grant program administered by the California Department of Housing and Community Development (HCD) that provides funding to acquire, rehabilitate, and develop interim and permanent housing for individuals and families experiencing or at risk of homelessness.
In 2025, the County and FAP secured $5,826,222 in Homekey Program Round 3 funding to develop the first youth-dedicated Homekey project in the County addressing a critical gap in interim housing and supportive services for transitional age youth (TAY) in the High Desert. The funding supports the development and operation of the TAY Tiny Home Village (Project), located at 16857 C Street in Victorville. The Project will create 22 interim housing units through the construction of seven duplex-style tiny homes and the rehabilitation of an existing residential structure. The Project will provide a safe, supportive environment for youth ages 18 through 24, offering interim housing, case management, life skills development, education and employment support, and other supportive services designed to promote long-term stability and self-sufficiency.
Amendment No. 4 to the Indemnification Agreement will extend the construction completion deadline from September 3, 2026, to September 30, 2026, reflecting the Project’s current anticipated completion date, and permit one or more additional extensions totaling no more than 90 days beyond September 30, 2026, if necessary. The Indemnification Agreement governs the County’s and FAP’s implementation of the Project and FAP’s use of the $5,826,222 in Homekey funds by establishing the parties’ respective responsibilities, allocating risk, and setting forth requirements for the development and operation of the Project. Related documents necessary to implement the amendments may include modification documents, revised exhibits or attachments, acknowledgments or certifications, notices, and other administrative or implementation documents. Unforeseen construction and Project implementation challenges have affected the schedule, and additional time is required to complete the remaining construction activities and final Project implementation. Construction is progressing, with completion anticipated by September 30, 2026.
On July 11, 2023 (Item No. 19), the Board of Supervisors (Board) approved the submission of a joint Homekey Program Round 3 application with FAP to HCD in the amount of $5,330,664 and adopted Resolution No. 2023-127 authorizing execution of the application and related Homekey Program documents. On May 6, 2025, HCD issued a Conditional Award Commitment for $5,826,222, reflecting updated construction and operating costs.
On August 19, 2025 (Item No. 24), the Board ratified execution of the Conditional Award Commitment, adopted Resolution No. 2025-183 increasing the authorized Homekey Program Round 3 award from $5,330,664 to $5,826,222, approved the Indemnification Agreement with FAP for the term of August 19, 2025, through August 18, 2057, and approved the Housing Development Grant Fund Bridge Loan Agreement No. 25-635, providing a $2,000,000 short-term bridge loan to support pre-development and construction activities pending receipt of Homekey Round 3 funds, for the term of August 19, 2025, through January 19, 2026. The Board also authorized execution of future non-substantive amendments necessary for administration of the agreements and implementation of the Project.
On December 16, 2025 (Item No. 38), the Board approved Homekey Program Round 3 Standard Agreement No. 25-1085 (State Agreement No. 24-HK-18612) between HCD, the County, and FAP, in an amount not to exceed $5,826,222, for a term beginning upon full execution and continuing for 15 years.
Since execution of the Indemnification Agreement, the County and FAP have executed Amendment Nos. 1 through 3 to revise the Indemnification Agreement’s Development Budget (Exhibit B), Schedule of Performance (Exhibit C), and Construction Schedule (Exhibit D) to reflect updated project costs, funding requirements, performance milestones, and construction timelines. Amendment Nos. 1 through 3 were executed pursuant to the delegated authority previously granted by the Board and in accordance with the terms of the Indemnification Agreement. These amendments were necessary to maintain compliance with HCD’s Homekey Program Round 3 requirements and support timely completion of the Project.
On May 5, 2026, Amendment No. 1 to the Indemnification Agreement was executed to incorporate changes resulting from an administrative delay in HCD’s processing of a correction to State Agreement No. 24-HK-18612. The correction to the State Agreement required corresponding revisions to the Indemnification Agreement, including amendments to Exhibit B to reallocate capital funds among updated budget categories while maintaining the overall capital budget of $4,717,422, Exhibit C to extend the Homekey capital funds expenditure deadline to July 31, 2026, and Exhibit D to align the Project completion date with the updated construction schedule of June 30, 2026.
On May 22, 2026, Amendment No. 2 to the Indemnification Agreement was executed following HCD’s issuance and notification of an extension to the Homekey Round 3 operating funds expenditure deadline. HCD’s extension provided additional time for Homekey Round 3 projects to expend operating funds in accordance with the revised timeline. Accordingly, Amendment No. 2 revised Exhibit C to extend the operating funds expenditure deadline from June 30, 2026, to June 30, 2027, consistent with HCD’s approved extension.
On July 15, 2026, Amendment No. 3 was executed to address impacts to the construction schedule. Amendment No. 3 revised Exhibits C and D to extend the construction completion deadline to September 3, 2026, and update related Project milestones to align with the revised construction schedule.
The delegated authority previously granted by the Board authorized extensions only through September 3, 2026; therefore, additional Board action is required to further extend the construction completion deadline.
PROCUREMENT
Not applicable
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 July 30, 2026.