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Approve an agreement with Kaiser Foundation Health Plan, Inc. to administer the California Advancing and Innovating Medi-Cal (CalAIM) Transitional Rent benefit for specialty mental health clients effective March 1, 2026; and Delegate authority to the County Administrator to execute the agreement and any amendments, with County Counsel concurrence
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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 an agreement with Kaiser Foundation Health Plan, Inc. to administer the California Advancing and Innovating Medi-Cal (CalAIM) Transitional Rent benefit for specialty mental health clients effective March 1, 2026; and
2. Delegate authority to the County Administrator to execute the agreement and any amendments, with County Counsel concurrence.
SUMMARY:
Through CalAIM, eligible Medi-Cal members experiencing homelessness or housing instability may receive a new Community Supports benefit, Transitional Rent, which provides up to six months of rental assistance. The California Department of Healthcare Services (DHCS) requires Medi-Cal Managed Care Plans (MCPs) to offer County Behavioral Health agencies the opportunity to administer Transitional Rent for individuals with serious mental illness.
The Department of Health & Social Services (H&SS) Behavioral Health Division has opted into this new benefit. Approval of this contract will enable Behavioral Health to operationalize this new benefit, expand the suite of housing-stability tools available to clients, and ensure alignment with State expectations under Proposition 1 (Behavioral Health Services Act “BHSA”) and CalAIM implementation.
FINANCIAL IMPACT:
DHCS will reimburse MCPs the actual cost of rental assistance or temporary housing paid to landlords or property owners, not to exceed a reimbursable ceiling. DHCS is also providing an administrative fee to cover costs for the Transitional Rent arrangement and management, including supporting tasks such as eligibility, payments, and compliance. As the Transitional Rent provider for Kaiser Foundation Health Plan, Inc. (Kaiser), Solano County Behavioral will receive 90% of the administrative fee to offset staff and operations related to Transitional Rent authorization, reconciliation, and reporting. Both the rental assistance and administrative fees will be reimbursed to the County through an invoicing process with Kaiser.
The Department is assessing the impact of this additional funding on the County budget. It will return to the Board at a later date if appropriations are needed for this program. There is no impact on the County General Fund.
DISCUSSION:
H&SS Behavioral Health has expanded its housing infrastructure in recent years through State grants and Behavioral Health Services Act (BHSA) investments. While these efforts increased capacity, most funds are time-limited, underscoring the need for long-term sustainability. Implementing the CalAIM Transitional Rent benefit is a key strategy to strengthen the County’s housing continuum.
Transitional Rent provides up to six months of rental assistance to eligible Medi-Cal members who are experiencing or at risk of homelessness. DHCS requires Medi-Cal Managed Care Plans (MCPs) to make this benefit available to the population of individuals with serious mental illness served by County Behavioral Health. Local implementation requires MCP contracts, eligibility and authorization workflows, coordinated processes with housing providers, and compliance with DHCS reporting and audit requirements. Solano County has been coordinating with Kaiser and receiving technical assistance from DHCS to establish comprehensive readiness and implementation procedures.
Behavioral Health will administer Transitional Rent as part of the County’s existing supportive housing portfolio, including its rental subsidy flex pool. The flex pool, administered through Abode Services, combines BHSA grants and other County-directed funds to provide rental subsidies, move-in assistance, prevention, and housing stabilization. Given the model’s capacity for flexible and rapid rental assistance deployment, Transitional Rent can be integrated without developing an independent program.
Transitional Rent will serve as an additional funding source for clients already receiving housing services, offsetting subsidy costs for those who meet DHCS criteria. Approximately 62 current clients may be eligible, with enrollment to occur gradually as workflows mature. Implementation is also required to comply with Proposition 1 (BHSA) and recent Behavioral Health Bridge Housing (BHBH) grant conditions, both of which mandate that counties use all available Medi-Cal housing supports, including Transitional Rent and the “housing trio” of Housing Transition Navigation Services, Housing Deposits, and Housing Tenancy and Sustaining Services, before utilizing BHSA or other State funds for rental assistance or tenancy supports.
ALTERNATIVES:
The Board may choose not to approve these contracts; however, this is not recommended. If the County declines to administer the Transitional Rent benefit, Medi-Cal Managed Care Plans could contract directly with a private community-based organization to serve Solano’s serious mental illness population which would fragment the County’s housing supports for its specialty mental health clients.
OTHER AGENCY INVOLVEMENT:
None.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION