Independent Living Home Habitability Improvements Project

The County of Santa Clara Health System, Behavioral Health Services Department (BHSD) is issuing RFP-BHS-FY26-0513 for the Independent Living Home Habitability Improvements Project, which seeks to award forgivable loans to qualified operators of unlicensed independent living homes serving individuals with serious mental illness experiencing homelessness. The procurement solicits applications from property owners, operators, and nonprofit housing providers to improve habitability conditions and safety in shared independent living homes to meet United States Department of Housing and Urban Development housing quality standards. Eligible improvements include updating bathrooms for ADA compliance, minor renovations such as painting and flooring, repairing or replacing appliances including water heaters and air conditioning equipment, fire system upgrades, bathroom and kitchen remodels, replacement of aging furniture and mattresses, and improvements to expand bed capacity. Individual applications may request funding ranging from $10,000 to $500,000 per property, and the County has allocated $2,000,000 in one-time Mental Health Services Act funding for the project. Applicants must demonstrate administrative and financial capacity to manage funds according to County requirements, provide proof of ownership or legal authority to complete improvements, submit property photos documenting areas requiring repair, be in good standing with the County with no outstanding corrective action plans or unresolved compliance issues, and commit to granting the County first right of refusal for future vacancies. The initial proposal submission deadline is February 27, 2026, at 3:00 PM Pacific Time, with a non-mandatory pre-proposal conference scheduled for January 29, 2026, at 2:30 PM PT via Microsoft Teams, written questions due by January 29, 2027, at 3:00 PM PT, and rolling submissions accepted thereafter through June 30, 2027. Proposals will be scored on a maximum of 100 points based on five evaluation criteria: Eligible Uses of Funds (20 points), Loan Request and Financial Readiness (15 points), Project Feasibility (20 points), Compliance and Certifications (20 points), and Benefit to BHSD Clients (25 points), with a minimum score of 70 percent required to advance in the selection process. The anticipated contract term commences upon agreement execution and extends through June 30, 2027, allowing for completion of County-approved improvements, required inspections, and verification of compliance for loan forgiveness.

This procurement is open exclusively to unlicensed independent living home operators, property owners, and nonprofit housing providers currently serving or intending to serve BHSD clients within Santa Clara County, with no designated set-asides for disadvantaged enterprises explicitly mentioned in the solicitation documents. Applicants must certify that the home operates legally and does not provide the level of care and supervision required to be licensed, and the improvements must be for future work only, with previously completed work ineligible for funding. Forgivable loans are structured with a five-year loan term carrying 3 percent simple interest deferred for the duration of the loan, with principal and interest forgiveness available if operators remain compliant with all loan conditions throughout the entire term. A deed restriction shall be recorded on the property title for the five-year loan term, requiring the property to meet County-approved habitability standards and serve eligible BHSD clients, and applicants must comply with HUD Housing Quality Standards inspections, maintain operations manuals, participate in ongoing quarterly data reporting, and submit to monthly compliance monitoring. Insurance requirements vary by contract value, with contracts above $100,000 requiring Commercial General Liability Insurance of $1,000,000 per occurrence and $2,000,000 general aggregate, Automobile Liability Insurance of $1,000,000 combined single limit, and Workers' Compensation with Employer's Liability coverage of $1,000,000 per occurrence. All proposals must be submitted electronically to BHSD.Solicitations@hhs.sccgov.org, with award notifications for the initial round issued by March 23, 2026, and subsequent awards within ten business days of rolling submission closure, with the County reserving the right to make awards on a rolling basis until all funds are expended or the deadline of June 30, 2027, is reached.