DATE: August 11, 2026
TO: Board of Supervisors
SUBMITTED BY: Susan L. Holt, Director, Department of Behavioral Health
SUBJECT: Memorandum of Understanding with Crossroads Village Fresno, LP for Permanent Supportive Housing
RECOMMENDED ACTION(S):
TITLE
1. Under Administrative Policy No. 34 for competitive bids or requests for proposals (AP 34), determine that an exception to the competitive bidding requirement under AP 34 is satisfied and a suspension of competition is warranted due to unusual or extraordinary circumstances as Crossroads Village Fresno, LP is the entity with direct control over the Crossroads Village permanent supportive housing site and County has previously committed to providing on-site supportive services for a period of 20 years; and
2. Approve and authorize the Chairman to execute a Memorandum of Understanding with Crossroads Village Fresno, LP for property management services at the No Place Like Home funded “Crossroads Village” permanent supportive housing site, effective upon execution through June 30, 2031, which includes a three-year base contract and two optional one-year extensions ($0).
REPORT
There is no additional Net County Cost associated with the recommended action, which will authorize a Memorandum of Understanding (MOU) with Crossroads Village Fresno, LP (Crossroads LP), for the No Place Like Home (NPLH) funded “Crossroads Village” permanent supportive housing (PSH) site (Crossroads PSH Site) located in District 2. The MOU delineates the roles and responsibilities of the Department of Behavioral Health (Department) as the supportive service provider, and Crossroads LP as the project owner. Under this arrangement, the Department is responsible for delivering onsite supportive services to tenants connected to Department services, while Crossroads LP is responsible for ownership, property management, and provision of the designated units for all tenants. The delineation of roles ensures clarity of responsibilities and compliance with NPLH, County of Fresno (County), and Department requirements.
ALTERNATIVE ACTION(S):
There are no viable alternative actions. Through the California Department of Housing and Community Development (HCD) Standard Agreements for NPLH funded housing sites, the County is required to provide supportive services for a minimum of 20 years.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
It is requested that the County find under AP 34 that an exception to the competitive bidding requirement is satisfied, and a suspension of competition is warranted due to unusual or extraordinary circumstances as Crossroads LP is the only entity with direct control over the property and authority to manage operations and deliver on-site property management services. This exclusive position ensures the NPLH-required integration of property management within the housing development, compliance with NPLH requirements, and coordination with the Department, which cannot be replicated by an outside vendor. As a condition of accepting the NPLH grant funds to support the development of the Crossroads PSH site, the County committed to providing supportive services to the site for a term of 20 years through execution of a Standard Agreement with HCD. The General Services Department - Purchasing concurs with the Department’s assessment that this satisfies the exception to the competitive bidding process required by AP 34.
FISCAL IMPACT:
There is no Net County Cost associated with the recommended action.
DISCUSSION:
On July 1, 2016, Governor Brown signed legislation enacting the NPLH Program (Assembly Bill 1618, Chapter 43, Statutes of 2016), dedicating $2 billion to invest in the development of PSH for persons in need of mental health services and experiencing homelessness, chronic homelessness, or at-risk of chronic homelessness. The program provides capital financing for acquisition, design, construction, rehabilitation, and capitalized operating subsidies, which allows California counties to increase capacity of PSH.
On April 11, 2023, the Board approved the execution of Standard Agreement 20-NPLH-16215 ($18,534,905) and 22-ACC-17427 ($38,338,375) with HCD for the construction of the Crossroads Village site development, not to exceed 30 years from the effective date and not to exceed a total of $18,534,905.
On April 11, 2023, the Board approved the execution of Agreement No. 23-163 with Crossroads LP, that committed to the County to make available supportive services for a minimum of 20 years beginning on April 11, 2023, at the Crossroads PSH site located at 3737 N Blackstone, Fresno, CA. The services committed by County are valued at $667,430 per year, or $13,348,600 over the 20 years.
In accordance with NPLH regulations and the Standard Agreement with HCD, the Department, is committed to offering onsite supportive services at the NPLH-funded Crossroads PSH site for a minimum of 20 years. Approval of the recommended actions will memorialize the commitments of each party, including the Department’s role in delivering supportive services to eligible tenants placed in designated NPLH units, and the developer’s role in maintaining and making 50 units at the Crossroads PSH site available for Department-served individuals.
This agreement differs from the County’s standard contract in that it does not include an Automobile Insurance requirement. The Department has determined that no driving will be carried out under this MOU, and the insurance requirements have been reviewed by Risk Management and deemed acceptable. The Department has determined the benefits of this agreement as written outweigh any potential risks and recommends approval of the MOU.
The Department has notified and received approval from the Department of Human Resources of execution of the recommended MOU to comply with AB 339. AB 339 requires that the County provide recognized employee organizations no less than 45 days’ written notice before issuing a request for proposals, request for quotes, or renewing or extending an existing contract, to perform services that are within the scope of work of the job classifications represented by the recognized employee organization.
OTHER REVIEWING AGENCIES:
The Behavioral Health Board was notified of this agreement at their June 2026 meeting.
REFERENCE MATERIAL:
BAI #27, April 11, 2023
BAI #30, April 11, 2023
BAI #34, December 10, 2019
ATTACHMENTS INCLUDED AND/OR ON FILE:
Suspension of Competition Acquisition Request
On file with Clerk - MOU with Crossroads Village Fresno, LP
CAO ANALYST:
Dylan McCully