Attachment A-Scope of Work rev 2.4.26.pdf

ATTACHMENT A

RFP-BHS-FY26-0513: Independent Living Home Habitability Improvements Project Page 1 of 5 ATTACHMENT A: Scope of Work

Scope of Work

I. Purpose

a. The County of Santa Clara (County) Behavioral Health Services Department (BHSD) is seeking applications from qualified property owners and operators of unlicensed independent living homes serving individuals with Serious Mental Illness (SMI) experiencing homelessness for participation in the Independent Living Home (ILH) Habitability Improvements Project.

b. The purpose of this project is to provide forgivable loans for future minor construction and rehabilitation improvements to improve conditions and enhance habitability and safety for homes serving BHSD clients.

c. Improvements must meet the United States Department of Housing and Urban Development (HUD) Housing Quality Standards (HQS) and promote safe, stable, and sustainable living environments for individuals with SMI.

II. Background Information

a. County staff have participated in a community work group established through the

Community Living Coalition (CLC) and co-chaired by a member of the CLC and a member of the Behavioral Health Community Association (BHCA). One objective of the work group was to make recommendations to improve habitability in unlicensed ILH, which included the implementation of a project to support repairs/renovations in shared homes where BHSD clients temporarily reside.

b. On April 8, 2025 Board of Supervisors meeting (item 16), the Board received a report from BHSD relating to the unlicensed ILH initiative (https://sccgov.iqm2.com/Citizens/Detail_Meeting.aspx?ID=16797).

c. This funding opportunity aligns with BHSD’s strategic goals under Mental Health Services Act (MHSA) to support housing stability and improve independent living environments for Behavioral Health clients.

III. Program Goals and Objectives

a. The unlicensed ILH program is intended to align with the following goals and objectives:

i. Goals shall include, but not be limited to, the following:

1. Meet the needs of vulnerable populations with the greatest barriers to access, including people experiencing homelessness and justice involvements.

2. Ensure housing supports recovery and client stability in the least restrictive settings to support community integration, client choice, and autonomy.

3. Provide financial assistance through forgivable loans to improve habitability, prevent housing loss, and increase bed capacity.

4. Leverage county and Medi-Cal investments to support ongoing sustainability.

5. Increase bed capacity in unlicensed ILH through landlord recruitment and/or construction to improve or expand facilities.

6. Ensure unlicensed ILH meet HUD housing quality standards.

ii. Objectives shall be achieved by the following:

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1. Increase access to unlicensed ILH through a coordinated entry system prioritizing BHSD clients.

2. Recruit new operators to partner with the County and join the unlicensed ILH network.

3. Work with unlicensed ILH operators to create safe, accessible, quality housing for the most vulnerable.

4. Build relationships between County and unlicensed ILH operators to improve quality and standards through regular meetings and facility inspections.

IV. Reporting and Data Collection Requirements

a. As a condition of funding, awarded applicants shall maintain basic records documenting improvements completed, funding used, and client occupancy.

b. Applicants in the program requires awarded applicants to participate in County inspections and submit required documentation for loan forgiveness.

c. County may require the use of a standard “Improvement Verification Form” to be completed post-construction and verified during inspection.

d. Data reporting requirements shall focus on:

i. Number of properties improved,

ii. Number of units impacted, and

iii. Verification that repairs meet HUD HSQ.

e. Awarded applicants shall be required to develop and maintain an operations manual.

f. Awarded applicants shall be required to submit of a deed restriction in accordance with

County requirements.

g. As a condition of funding, awarded applicants shall provide the County first right of client referral for entry into the unlicensed ILH.

h. In accordance with MHSA requirements, awarded applicants shall be expected to track clients benefiting from County-funded improvements and participate in ongoing program and client-level data reporting. Reporting is anticipated to occur monthly using a County-provided template, including those provided as reference in Attachment G, as applicable.

i. Awarded applicants shall be required to submit all program Data Reports using BHSD MHSA/BHSA-approved templates that include demographics, implementation challenges, successes, lessons learned, and other required information.

j. Program Data Reports shall be submitted to the BHSD Program Contract Manager on a quarterly schedule. Reports are due no later than fifteen (15) working days after the end date of each quarter.

k. Awarded applicants shall be required to participate in meetings scheduled by BHSD MHSA/BHSA to report on activities, receive technical assistance, and ensure compliance with program requirements.

l. Awarded applicants shall be informed of any required trainings and/or informational sessions related to MHSA data regulations and shall be expected participate as applicable.

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m. As a condition of funding, awarded applicants shall comply with all applicable County, State, and Federal reporting requirements as set forth in 9 CCR Ch. 14 and. the BHSA Policy Manual (https://policy-manual.mes.dhcs.ca.gov/behavioral-health-services-act-county-policy-manual/LIVE/).

V. Outcomes and Measurements

a. Program outcomes are intended to demonstrate increased safety and habitability of unlicensed ILH facilities as demonstrated in the HUD housing quality standards and measured by regular inspections throughout term (life of the deed restriction).

b. Outcomes will be evaluated based on:

i. Completion of eligible improvements with the approved budget and timeframe;

ii. Compliance with County inspection standards; and

iii. Continued use of the property for eligible clients during the loan term.

c. County staff shall perform both pre-award and post-completion inspections to confirm eligibility and compliance prior to loan forgiveness.

d. Awarded applicants shall required to submit inspection and completion documentation as required by BHSD.

i. Program performance shall be monitored using monthly, quarterly, and annual measurement tools and documentation, which may include Microsoft Excel and other formats as requested by BHSD.

ii. Awarded applicants shall supplement reviews using County data systems or assessment tools as required by BHSD.

VI. Program Description and Funding Overview

a. The unlicensed ILH shall provide forgivable loans to eligible property owners/operators to complete essential habitability and safety improvements for unlicensed ILH serving clients of BHSD.

b. Funding and Eligible Improvements

i. Forgivable loans to support eligible construction and rehabilitation projects that improve habitability and maintain or expand housing for BSHD clients.

ii. Allowable improvements include, but are not limited to:

1. Repairs or upgrades to meet HUD HQS;

2. Accessibility modifications compliant with Americans with Disabilities

Act (ADA);

3. Plumbing, electrical, roofing, or HVAC repairs;

4. Fire and life-safety improvements;

5. Bathroom and kitchen rehabilitation;

6. Minor renovations such as painting and flooring, repairing or replacing appliances such as water heaters and air conditioning equipment, fire system upgrades, bathroom and kitchen remodels, replacement of aging furniture and mattresses; and

7. Other essential upgrades as approved by County that preserve or expand the available beds for BHSD clients.

c. Loan Funding Overview

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i. Single applications may request funding amounts ranging from $10,000 and $500,000 per property.

ii. Awards will be structured as forgivable loans with a loan term of five (5) years.

iii. The County may issue funding on a rolling basis until all funds are expended.

iv. Each loan will carry a 3% simple interest rate, deferred for the duration of the loan. If the operator remains compliant with the full term of the loan and all conditions of the Forgivable Loan Agreement are met, the entire principal and interest shall be forgiven.

d. Deed Restriction

i. As a condition of funding, a deed restriction shall be recorded on the property title for the 5-year term of the forgivable loan. The deed restriction shall require that the property continue to meet County-approved habitability standards and serve eligible BHSD clients for the duration of the loan.

ii. If the property is leased rather than owned, the tenant shall obtain written consent from the property owner to record the deed restriction. The owner of the property must file the deed restriction prior to award execution. The tenant cannot file on the owner’s behalf.

e. Occupancy and Program Eligibility

i. The unlicensed ILH where improvements shall be made must house at least one

(1) individual with an SMI who is eligible for County behavioral health services at the time of application and throughout the funding period.

f. County Rights and Operator Commitments

i. Participation in this funding opportunity requires the operators or property owners to:

1. Grant the County first right of refusal for any future vacant units during the 5-year loan term;

2. Assure that funded improvements prevent closure and/or loss of capacity,

3. Maintain compliance with all applicable laws, permits, and County inspection requirements.

g. Funding Priority Order

i. Funds will be awarded to operators of homes in the following priority order:

1. Homes where BHSD clients currently reside, including:

a. Homes under direct County contract;

b. Homes where the County subsidizes rent; or

c. Homes where the tenant’s rent or subsidy originate from a non-

County source.

2. Homes where individuals with a SMI reside who are clients of other

County programs or department (e.g., Office of Supportive Housing, Department of Aging and Adult Services, etc.).

3. Homes where residents with a SMI receives Supplemental Security Income (SSI).

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4. Homes where residents with a SMI receive Medi-Cal benefits.

5. Homes serving residents with a SMI at lower income levels, prioritized by need.

h. Verification, Inspection, and Compliance

i. The entirety of the unlicensed ILH shall pass a HUD HQS inspection after the approved improvements are completed.

ii. HQS inspections will evaluate:

1. Facility conditions focused on health and safety;

2. Compliance with approved project scope and County permits; and

3. Operational practices related to the actions of the landlord or property operator.

iii. The County may also conduct interim inspections during construction to ensure adherence to approved plans and funding requirements.

iv. Participation in this program requires compliance with applicable ordinances and resolutions of the County Board of Supervisors and the policies, procedures, directives, and guidelines of the County, BHSD, and the County of Santa Clara Health System (“Health System”), including, but not limited to the BHSD Provider Manual and/or the BHSD policies and procedures.