REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 1, 2026
FROM
MARCUS DILLARD, Chief of Homeless Services, Office of Homeless Services
SUBJECT
Title
Contract with the Housing Authority of the County of San Bernardino for the Transitional Workforce Housing Program at Echo Apartments in San Bernardino
End
RECOMMENDATION(S)
Recommendation
1. Approve Contract with the Housing Authority of the County of San Bernardino, including non-standard terms, for the provision of transitional workforce housing at Echo Apartments, located at 505 East Rialto Avenue in San Bernardino, in an amount not to exceed $623,511.79, for the period of September 1, 2026 through June 30, 2029.
2. Authorize the use of the Capitalized Operating Subsidy Reserve established by the Board of Supervisors on May 19, 2026, in an amount not to exceed $623,512, to fulfill the County's financial obligations under the Contract with the Housing Authority of the County of San Bernardino, for the provision of transitional workforce housing at Echo Apartments.
3. Authorize the Assistant Executive Officer, Deputy Executive Officer, or Chief of Homeless Services to approve and execute any subsequent non-substantive amendments to the Contract with the Housing Authority of the County of San Bernardino, subject to County Counsel review.
4. Direct the Chief of Homeless Services to transmit any subsequent non-substantive amendments to the Contract with the Housing Authority of the County of San Bernardino to the Clerk of the Board of Supervisors within 30 days of execution.
(Presenter: Marcus Dillard, Chief of Homeless Services, 501-0644)
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 additional Discretionary General Funding (Net County Cost). The Contract, in an amount not to exceed $623,511.79, will be supported by the Capitalized Operating Subsidy Reserve (COSR), which was established using the State of California’s Homeless Housing, Assistance and Prevention (HHAP) Program Round 3 and Round 4 County Youth Set-Aside funds. These funds are administered by the California Department of Housing and Community Development (HCD). Adequate appropriation and revenue have been included in the Office of Homeless Services’ (OHS) 2026-27 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
OHS administers housing programs and funding to prevent and reduce homelessness throughout San Bernardino County (County). These efforts are supported in part by the State of California’s HHAP Program, which provides block grant funding to support housing interventions, regional coordination, and services for individuals and families experiencing homelessness. Each funding round includes a County Youth Set-Aside to support housing and services for youth experiencing or at risk of homelessness. This item uses HHAP Round 3 and Round 4 County Youth Set-Aside funds to provide housing assistance for individuals ages 18 through 24 and families, with at least one member between the ages of 12 and 24.
Many young adults ages 18 through 24 who are exiting foster care or other systems of care, or leaving unstable living environments, face significant barriers to securing stable housing and employment as they transition into adulthood. This transitional workforce housing program is designed to address those needs through a transitional housing model that promotes housing stability, income growth, and successful transitions to permanent housing.
Approval of Recommendation No. 1 will allow the County to enter into a contract with the Housing Authority of the County of San Bernardino (HACSB) to implement a transitional workforce housing program at Echo Apartments in San Bernardino for eligible individuals and families experiencing or at risk of homelessness, including transitional age youth. Through housing stabilization, rental assistance, and supportive services, the program will expand access to safe and stable housing, help participants increase their incomes and access employment opportunities, and support successful transitions to permanent housing.
On May 19, 2026 (Item No. 46), the Board of Supervisors (Board) approved a budget adjustment authorizing the establishment and funding of a Capitalized Operating Subsidy Reserve (COSR) in an amount not to exceed $623,512, using HHAP Round 3 and Round 4 County Youth Set-Aside funds. The COSR was created to support ongoing rental subsidies and housing stabilization costs associated with a transitional workforce housing program at Echo Apartments, ensuring the County’s ability to meet lease-related obligations for participating households. Approval of this item authorizes OHS to expend funds from the previously established COSR to satisfy the County's financial obligations under the proposed contract with HACSB.
This Contract contains the following non-standard terms that differ from the County standard contract terms:
1. The Contract contains mutual indemnification language that requires both HACSB and the County to indemnify, defend, and hold each other harmless for claims arising out of the contract, except in cases of sole negligence or willful misconduct.
• The County standard contract indemnity provision requires the contractor to indemnify, defend, and hold the County harmless from third-party claims arising out of the acts, errors or omissions of any person.
• Potential Impact: The County shares the risk of liability with HACSB and, for claims subject to the County’s indemnification obligation, the County may be responsible for HACSB’s legal costs and damages.
2. The Contract includes insurance requirements, including general liability, automobile liability, professional liability, and cyber liability coverage, as well as provisions for additional insured status, waiver of subrogation, and primary and non-contributory coverage for both HACSB and the County through an authorized self-insurance risk management pool.
• The County standard contract requires the contractor to carry insurance coverage.
• Potential Impact: By providing indemnity and insurance, the County will assume additional risk and must ensure compliance with the insurance requirements.
3. The Contract includes a non-standard reciprocal property damage provision requiring the County to repair or pay for damage to Echo Apartments caused by the willful or negligent acts of the County or the clients placed at Echo Apartments.
• The County standard contract does not have a reciprocal property damage provision.
• Potential Impact: The County may be responsible for property damage to Echo Apartments.
These provisions deviate from standard County risk allocation language and have been reviewed by Risk Management. While the contract includes non-standard indemnification, insurance, and property damage provisions, Risk Management supports OHS's assessment that the benefits of the Contract outweigh the risks associated with these non-standard terms. Given the collaborative nature of the program and the shared operational responsibilities at Echo Apartments, OHS has determined that implementation of the program will provide a significant public benefit by expanding housing opportunities and supportive services for youth and families experiencing or at risk of homelessness.
PROCUREMENT
Purchasing supports the non-competitive procurement of the transitional workforce housing services at Echo Apartments. HACSB maintains control of the property and the units required for the program, including leasing oversight and property management coordination. Since HACSB is the only entity capable of providing these services at the designated site, a competitive procurement is not feasible.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Suzanne Bryant, Deputy County Counsel, 387-5455) on July 30, 2026; Risk Management (Stephanie Mead, Staff Analyst II, 386-9044) on May 21, 2026; Purchasing (Jessica Barajas, Supervising Buyer, 387-2065) on July 1, 2026; and County Finance and Administration (Paul Garcia, Administrative Analyst, 386-8392) on August 17, 2026.