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Approve three contracts with Abode Services for the term of August 1, 2026, through June 30, 2027, for housing supports for individuals experiencing behavioral health conditions and homelessness or housing instability, including a contract for $6,318,267 for permanent supportive housing, a contract for $3,877,619 for rapid rehousing, and a contract for $1,600,000 for street outreach; Delegate authority to the County Administrator to execute the agreements and any subsequent amendments, with County Counsel concurrence, up to an aggregate of $74,999 per contract; and Approve an Appropriation Transfer Request in the amount of $2,842,142 to recognize unbudgeted revenue and appropriations for this agreement in Fund 902 and Fund 906 (4/5 vote required)
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Published Notice Required? Yes _____ No __X__
Public Hearing Required? Yes _____ No __X__
DEPARTMENTAL RECOMMENDATION:
The Department of Health & Social Services recommends that the Board of Supervisors:
1. Approve three contracts with Abode Services for the term of August 1, 2026, through June 30, 2027, for housing supports for individuals experiencing behavioral health conditions and homelessness or housing instability, including a contract for $6,318,267 for permanent supportive housing, a contract for $3,877,619 for rapid rehousing, and a contract for $1,600,000 for street outreach;
2. Delegate authority to the County Administrator to execute the agreements and any subsequent amendments, with County Counsel concurrence, up to an aggregate of $74,999 per contract; and
3. Approve an Appropriation Transfer Request in the amount of $2,842,142 to recognize unbudgeted revenue and appropriations for this agreement in Fund 902 and Fund 906 (4/5 vote required).
SUMMARY:
Abode Services provides core housing and homelessness services for individuals with serious mental illness, substance use disorders, or other complex behavioral health needs. These agreements maintain existing street outreach, housing navigation, landlord engagement, rental assistance administration, rapid rehousing, permanent supportive housing, and management of scattered-site supportive housing units.
The recommended new agreements reorganize the existing program into three separate agreements to improve fiscal oversight while maintaining coordinated service delivery. They also align County housing services with Medi-Cal Community Supports, Enhanced Care Management, Transitional Rent, and the Behavioral Health Services Act (BHSA), ensuring eligible activities are reimbursed through Medi-Cal and BHSA funds are reserved for allowable housing interventions. Integrating Transitional Rent into the County’s flexible funding pool supports partnerships with local health plans and maximizes housing resources. Approval of the agreements ensures continuity of care and sustained housing support for residents with significant behavioral health needs.
FINANCIAL IMPACT:
Funding for the three agreements will be provided through a combination of State, local, and grant sources, including Homeless Housing, Assistance and Prevention (HHAP) grant funding; Housing and Homelessness Incentive Program (HHIP) grant funding; Behavioral Health Bridge Housing (BHBH) funding; Opioid Settlement Funds (OSF); Behavioral Health Services Act (BHSA) revenue; and 1991 Realignment.
As the rapid rehousing and permanent supportive housing contracts include direct client expenditures for rental assistance, paid at the beginning of each month, Abode Services will receive an advance equal to three months of budgeted rental subsidy expenditures, estimated at $1,814,727. The advance will be reconciled at the end of the fiscal year, and Abode Services will be required to maintain a performance bond payable to the County in an amount sufficient to secure the advanced funds.
The FY2026/27 Working Budget does not include enough appropriations for these three agreements; therefore, an Appropriation Transfer Request (ATR) in the amount of $2,842,142 is required to recognize unanticipated HHIP, BHBH, HHAP, and BHSA revenues and corresponding appropriations (4/5 vote required).
DISCUSSION:
On November 7, 2023, the Board approved a contract with Abode Services to provide outreach, housing navigation, rental assistance administration, permanent supportive housing, rapid re-housing, landlord engagement, and related services for individuals with complex behavioral health conditions who were experiencing or at risk of homelessness.
The term of the previous contract ended on June 30, 2026 with a one-month novation through July 30, 2026. Approval of the proposed agreements will continue these services through June 30, 2027 without interruption. The renewal also incorporates changes related to Medi-Cal Community Supports, Enhanced Care Management, Transitional Rent, and implementation of the Behavioral Health Services Act. The proposed services will help existing participants maintain housing, assist additional residents in obtaining permanent housing, and preserve the County’s housing support infrastructure for individuals with serious mental illness or substance use disorders.
Collectively, these services assist participants throughout the housing process, from initial engagement and assessment through housing placement and long-term housing stability. The proposed services will help existing participants maintain housing, assist additional participants in obtaining permanent housing, and preserve the County's housing support infrastructure for individuals with serious mental illness and/or substance use disorders.
The previous Abode Services agreement consolidated the County’s housing and homelessness programs into one contract. The proposed renewal separates the services into three separate agreements:
Permanent Supportive Housing Services
A contract for $6,318,267 to assist participants with obtaining and maintaining stable housing along with providing coordinated, person-centered supportive services to help participants improve overall health, functioning, and quality of life. The contract supports 23 site specific households in No Place Like Home units and an additional 222 scattered-site households for a total of 245 households.
Rapid Rehousing Services
A contract for $3,844,619 to provide time-limited (generally up to 18-months) housing interventions to support participants in securing and maintaining permanent housing without ongoing rental assistance. Housing is paired with connection to community resources and income development to support long-term self-sufficiency for a minimum of 125 individuals.
Street Outreach
A contract for $1,600,000 to engage a minimum of 150 individuals experiencing unsheltered homelessness who have behavioral health needs. Outreach staff will meet individuals where they are located in the community and focus on building trust and addressing immediate needs, while connecting participants to community resources and behavioral health services. A minimum of 75 participants will be supported with housing navigation to assist them to progress into stable housing.
This restructuring does not materially expand the scope or capacity of the programs. Separating the services into distinct agreements is intended to improve contract administration, fiscal accountability, expenditure tracking, and program oversight while preserving coordinated service delivery. Permanent supportive housing and rapid rehousing services will continue to use the County’s flexible funding pool, or “flex pool,” model. The model combines multiple eligible funding sources to pay rental subsidies and housing-related expenses based on participant eligibility and program requirements.
Proposition 1 restructured the Mental Health Services Act and renamed it the Behavioral Health Services Act (BHSA). The BHSA requires counties to allocate at least 30 percent of specified funding toward housing interventions for eligible behavioral health populations. The services provided under the proposed Abode Services agreements represent a substantial component of Solano County Behavioral Health’s housing intervention strategy. BHSA funding will help sustain eligible housing services as several temporary grants expire. The BHSA also limits the use of housing intervention funding for services that are otherwise reimbursable through Medi-Cal. Accordingly, the agreements are structured so that eligible Community Supports and Enhanced Care Management activities are billed to Medi-Cal managed care plans when reimbursement is available. BHSA funding will be reserved for allowable housing interventions and other services that are not reimbursable through Medi-Cal.
The California Department of Health Care Services has established Transitional Rent as a Medi-Cal Community Support for eligible beneficiaries experiencing homelessness or housing instability. Solano County Behavioral Health will administer Transitional Rent for its behavioral health population of focus. Transitional Rent will be incorporated into the County’s existing flex pool rather than operated as a separate rental assistance system. This approach will allow the County to maximize available housing resources, coordinate funding, and reduce disruption for existing participants.
On April 14, 2026, the Board approved an agreement with Kaiser Permanente authorizing Solano County Behavioral Health to administer Transitional Rent for eligible Kaiser Permanente members. On June 23, 2026, the Board approved a separate agreement with Partnership HealthPlan of California for eligible Partnership HealthPlan members. The proposed Abode Services agreements will support the implementation of those partnerships and the administration of rental assistance across the County’s housing system.
Abode Services has operated these programs since 2023 and has demonstrated the organizational capacity, housing expertise, staffing infrastructure, and fiscal systems necessary to continue the services. Approval of the agreements will maintain continuity of care, preserve existing housing placements and rental assistance resources, and support residents with significant behavioral health needs who are experiencing homelessness or housing insecurity.
ALTERNATIVES:
The Board may choose not to approve the contracts requested; however, this action is not recommended. Failure to approve these contracts could negatively impact the ability of H&SS to provide housing and other services to people experiencing homelessness and housing instability.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved the contracts for legal sufficiency.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION