DATE: August 6, 2024
TO: Board of Supervisors
SUBMITTED BY: Susan L. Holt, Director, Department of Behavioral Health
SUBJECT: Amendment I to Program Funding Agreement for Community Care Expansion Preservation Projects
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Amendment I to Program Funding Agreement with the HORNE LLP for Community Care Expansion Preservation Projects, extending the deadlines for the obligation and liquidation component of the agreement to the deadlines issued by the California Department of Social Services, with no change to the term or maximum compensation, for Operating Subsidy Payments April 23, 2024 through June 30, 2029 ($2,351,591) and Capital Project April 23, 2024 through December 31, 2026 ($3,111,750).
REPORT
There is no increase in Net County Cost associated with the recommended action. The obligation and liquidation deadlines for the Operating Subsidy Payment (OSP) and Capital Projects (CP) Program components of the agreement have been extended by the California Department of Social Services (CDSS). Approval of the recommended action will amend the agreement to reflect the current deadlines issued by CDSS, which are listed at www.ccegrant.com. This item is countywide.
ALTERNATIVE ACTION(S):
If the recommended action is not approved, deadlines for obligation and liquidation of funds will not be extended requiring the Department to continue with the current deadlines and not allowing for extended time to implement the grant project and reconcile funding at the termination of the grant term.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The executed CCE Preservation Program agreement will fund Specialized Supplemental Board and Care Homes in the amount of $2,351,591 for OSP April 23, 2024 through June 30, 2029; and $3,111,750 for CP effective April 23, 2024 through December 31, 2026 totaling $5,463,341. The CP funding requires a 10% match which will be allocated through the Department’s administrative time implementing and administering this project. The Department is allowed up to 15% ($819,501) of program funds for administrative costs. Sufficient appropriations and estimated revenues will be included in the Department’s Org 5630 FY 2024-25 Recommended Budget and future budget requests.
DISCUSSION:
CDSS acknowledges that California has a shortage of adult and senior care facilities (e.g., Adult Residential Facilities [ARFs] and Residential Care Facilities for the Elderly [RCFEs]) that accept individuals receiving or applying for Supplemental Security Income (SSI)/State Supplementary Payment (SSP) or Cash Assistance Program for Immigrants (CAPI). It has also seen a decline in the number of SSI/SSP recipients residing in adult and senior care facilities. The CCE program was established by Assembly Bill (AB) 172 (Chapter 696, Statutes of 2021) to fund capital projects and promote the sustainability of residential adult and senior care facilities and to address historic gaps in the long-term care continuum.
CDSS utilizes HORNE LLP to serve as the third-party administrator for the CCE program. On July 15, 2022, the Department chose to accept the funds established above by the CCE Program for OSP and CP to prevent closure of licensed adult and senior care facilities. On August 15, 2022, the Department was notified that it was awarded these noncompetitive allocations. The Department submitted an implementation plan on January 30, 2023 outlining the Department’s plan for administration of the plan and the disbursement of funds. On April 7, 2023, the Department was advised that additional funds were awarded through CCE Preservation Project. The final amounts awarded can be found in the fiscal impact section above. The Department has been working with the third-party administrator of the grant since
November 2023 to finalize the funding agreement.
On April 23, 2024 your board executed the Program Funding Agreement for Community Care Expansion Preservation Project to accept grant funding to prevent closure of ARF and RCFE facilities.
The obligation and liquidation deadlines for the Operating Subsidy Payment (OSP) and Capital Projects (CP) Program components of the agreement have been extended by CDSS. Approval of the recommended action will amend the agreement to reflect the current deadlines issued by CDSS, which are listed at www.ccegrant.com. CDSS plans to publish any modifications to these deadlines on the same website.
Current deadlines are as follows:
OSP - Obligation Deadline June 30, 2027; Liquidation Deadline March 31, 2029
CP - Obligation Deadline December 31, 2026; Liquidation Deadline September 30, 2028
The obligation date is the date that the Program Funding Agreement is executed between HORNE and the receiving County. Liquidation is the date that the grantee liquidates all financial obligation which involves reconciling financial expenditures and the submission of final required reports.
OTHER REVIEWING AGENCIES:
The Behavioral Health Board was notified of this amendment at the July 2024 meeting.
REFERENCE MATERIAL:
BAI# 35, April 23, 2024
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment I to Agreement with HORNE LLP
CAO ANALYST:
Ronald Alexander