DATE: October 6, 2026
TO: Board of Supervisors
SUBMITTED BY: Susan L. Holt, Director, Department of Behavioral Health
SUBJECT: Amendment No. 2 to Agreement with Turning Point of Central California, Inc. for Permanent Supportive Housing
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute Amendment No. 2 to Agreement No. 24-305 with Turning Point of Central California, Inc., to remove the Falcon Court site, effective upon execution with no change to the term of July 1, 2024, through June 30, 2029, and decreasing the maximum compensation by $64,083 to a total of $310,917.
REPORT
There is no additional Net County Cost associated with the recommended action, which will allow the Department to revise Agreement No. 24-305 with Turning Point of Central California, Inc. (Turning Point) for the Family Villa and Falcon Court permanent supportive housing (PSH) sites (Agreement), to update the scope of work to remove the Falcon Court PSH site, reduce the total number of beds from 24 to 18, and reduce the maximum compensation payable under the agreement. The Falcon Court PSH site is located in District 2, however the impact is countywide.
ALTERNATIVE ACTION(S):
Should your Board not approve the recommended action, the Department will be unable to accurately reflect the closure of the Falcon Court PSH site, and this will impact the accuracy of the Department’s housing options for individuals and their families who are experiencing homelessness.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. The recommended amendment decreases the agreement maximum compensation by $64,083 to $310,917. The Agreement will continue to be financed with Department Realignment funds. Sufficient appropriations and estimated revenues are included in the Department’s Org 5630 FY 2026-27 Adopted Budget and will be included in future budget requests for the duration of the term of the Agreement.
In accordance with U.S. Department of Housing and Urban Development (HUD) regulations, person served rents are limited to no more than 30% of their gross income. Compensation to Turning Point is based on a daily rate of $8.56 beginning on the first date of tenant occupancy and continuing through each subsequent day of their stay, excluding the day of departure. With a maximum occupancy of 18 units, the maximum compensation of $310,917 would provide for a total of 32,852 bed days throughout the term of the Agreement.
DISCUSSION:
On June 18, 2024, the Board approved the Agreement with Turning Point (No. 24-305) for Permanent Supportive Housing Services, effective July 1, 2024, for an initial three-year term through June 30, 2029, with two optional one-year extensions, total maximum compensation not to exceed $375,000.
On October 8, 2024, the Board approved Amendment No. 1 to the Agreement (No. 24-534) to revise Exhibit A, Scope of Work, to update the service location for housing site Family Villa.
Turning Point received a HUD Continuum of Care (CoC) grant for this PSH program, which allows the County to receive a subsidized bed rate. The Department provides a portion of the overall costs of the PSH program as match funds for the HUD’s CoC grant, to help clients access services. PSH services are available to individuals and their families that meet the HUD definition of homelessness and who have mental health and/or co-occurring substance use disorder. Under the Agreement, Turning Point provides PSH services between two service sites: Family Villa and Falcon Court.
Due to changes in HUD’s homeless services priorities which resulted in reallocation of local CoC permanent housing funds, Turning Point has closed down the Falcon Court PSH site as of January 31, 2026, resulting in the loss of 6 beds. Residents were successfully transferred to other housing options prior to the closure of the program.
The current Turning Point program still includes the Family Villa PSH site and offers 18 priority units to individuals and their families currently connected or previously connected to the Department. Approval of the recommended action will update the scope of work to reflect the closure of the Falcon Court PSH site and reduce the maximum compensation amount.
The County reserves the right to transition funding to Behavioral Health Services Act (BHSA) funds at a later date, which may necessitate compliance with additional or revised reporting requirements.
The Department has notified and received approval from Human Resources of execution of the recommended agreement to comply with AB 339.
OTHER REVIEWING AGENCIES
The Behavioral Health Board will be notified of this amendment at the October 2026 meeting.
REFERENCE MATERIAL:
BAI #32, October 8, 2024
BAI #44, June 18, 2024
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment No. 2 with Turning Point of Central California, Inc.
CAO ANALYST:
Dylan McCully