DATE: October 20, 2026
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, County Administrative Officer
Susan L. Holt, Director, Department of Behavioral Health
SUBJECT: Agreements with the California Department of Housing and Community Development and Sanger Homekey, LP, for Homekey+ and No Place Like Home funding to develop the Sendero Commons Permanent Supportive Housing site in Sanger, CA
RECOMMENDED ACTION(S):
TITLE
1. Approve and authorize the Chairman to execute Standard Agreement 25-HK+-18885 with the California Department of Housing and Community Development (HCD) for Homekey+ grant funds to develop the Sendero Commons Permanent Supportive Housing (PSH) site, effective upon execution by the State, not to exceed 20 years, total not to exceed $29,853,131;
2. Approve and authorize the Chairman to execute the Regulatory Agreement in substantially the same form as the one on file with the Clerk of the Board that places a 55-year affordability restriction on the Homekey+ funded Sendero Commons PSH site in Sanger, CA ($0);
3. Approve and authorize the Chairman to execute Standard Agreement 21-NPLH-17368 with HCD for No Place Like Home - Round Four grant funds to develop the Sendero Commons PSH site, effective upon execution by the State, not to exceed 30 years, total not to exceed $18,147,660; and
4. Approve and authorize the Chairman, or his designee, to sign associated documents, including the request for funds form, wire transfer request form, or other related documents, subject to review as to legal form by County Counsel, and to accounting form by the Auditor-Controller/Treasure-Tax Collector, to affect the transfer of grant funds.
REPORT
There is no additional Net County Cost associated with the recommended actions, which will approve the agreements with California Department of Housing and Community Development (HCD) for No Place Like Home (NPLH) and Homekey+ funds to develop the Sendero Commons - Permanent Supportive Housing (PSH) site in Sanger, CA. Approval of the first recommended action will execute the Standard Agreement with HCD for a term of 20 years, to accept the Homekey+ funds ($29,853,131) for development of the Sendero Commons PSH site. Approval of the second recommended action will execute a Regulatory Agreement that places a 55-year affordability limit on the Homekey+ funded Sendero Commons PSH site in Sanger, CA. Approval of the third recommended action will execute the Standard Agreement with HCD for a term of 30 years, to accept the NPLH Round 4 funds ($18,147,660) for the development of the Sendero Commons PSH site. This item pertains to a location in District 4.
ALTERNATIVE ACTION(S):
Should your Board not approve recommended actions 1 - 3, the County would lose an opportunity to secure funding for the development of a permanent supportive housing site which would serve 87 of the most vulnerable families in Fresno County. Your Board may elect not to approve recommended action 4, requiring that staff return to your Board to request authorization to sign forms related to the transfer of grant funds.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended actions. The Standard Agreement with HCD for Homekey+ authorizes the grant application for awarded funds, totaling $29,853,131. The Standard Agreement with HCD for NPLH funds authorizes the grant application for awarded funds, totaling $18,147,660.
DISCUSSION:
NPLH
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 January 4, 2022, the Board approved Resolution No. 22-004 which authorized the County’s participation in the NPLH Round Four funding opportunity for the “Libre Commons” project located at 63 West Shaw Avenue, Fresno, CA. The NPLH application was approved by the Board, submitted to HCD, and was subsequently tentatively awarded for the Libre Commons project.
On August 6, 2024, the Board approved Resolution No. 24-290 withdrawing its support from the “Libre Commons” project location due to funding concerns and the withdrawal of key project sponsors. At the August 6, 2024, meeting, the Board amended the proposed resolution, postponing their withdrawal of support to January 1, 2025 if the project was still unable to demonstrate that the project was fully funded by that date. The “Libre Commons” project was not fully funded by January 1, 2025, and support for that project has been withdrawn.
On June 10, 2025, your Board approved Resolution No. 25-182 to declare the County’s support for participation in the NPLH Round Four program for the Sendero Commons PSH project, formerly known as “Sanger Modular”, in Sanger, CA, delegate authority to the CAO and DBH Director to execute documents related to the NPLH Round Four program, and direct staff to take the necessary actions to affect the transition of tentatively awarded NPLH funds from the “Libre Commons” project, to the “Sanger Modular” Homekey+ project.
Homekey+
Proposition 1, passed by California voters in March 2024, includes the Behavioral Health Services Act and the Behavioral Health Infrastructure Bond Act (BHIBA). Homekey+ is the PSH component of BHIBA. Homekey+ will support the development of PSH for adults, older adults, veterans, and individuals with mental health or substance use disorder challenges who are at-risk of or experiencing homelessness. Homekey+ continues a statewide effort to sustain and rapidly expand PSH for persons experiencing homelessness.
On February 11, 2025, your Board approved two memoranda of understandings (MOU), with RH Community Builders (RHCB) and Housing Authority of the City of Fresno (Housing Authority), to formalize the County’s relationship as co-applicant with each selected vendor under the Homekey+ project. Your Board also authorized two resolutions (Authorizing Resolutions), to allow the County, through DBH, to submit Homekey+ applications as co-applicant with RHCB and Fresno Housing.
In March of 2025, HCD notified County staff that the prior Authorizing Resolutions, previously approved by your Board and submitted to HCD, would be accepted on a temporary basis. However, HCD requires that the County submit revised Authorizing Resolutions, in order to include the names of all special purpose entities that were not yet established at the time the prior Authorizing Resolutions were executed by your Board.
On May 20, 2025, your Board approved an updated Resolution No. 25-155, authorizing the County to submit a joint grant application with RHCB and UPholdings to HCD for participation in the Homekey+ Program; a Memorandum of Understanding with RHCB and UPholdings to identify, apply for, and develop a supportive housing project for the Homekey+ Program in Sanger, Ca., effective upon execution through June 30, 2030; and authorized the Director of the Department of Behavioral Health (DBH) to be the signatory on behalf of the Board of Supervisors on associated grant applications and all grant documents.
On February 10, 2026, your Board approved an updated Resolution No. 26-032 authorizing and designating the Chairman as the individual to sign the Homekey+ Application and associated documents, and the Vice Chairman as the signatory on the Resolution, as the individual who certifies the resolution cannot also be authorized to execute the Homekey+ documents on behalf of the grant applicant.
On March 20, 2026, HCD provided a notice of Homekey+ award to the County.
The following is a brief description of the proposed Sendero Commons Homekey+ project:
RHCB Development, LP and UP Holdings California, LLC (Sendero Commons, formerly known as Sanger Modular - Sanger, CA)
Located near SW corner Cherry Ave. & De Witt Ave. Sanger, CA 93657 (APN 322-132-05)
The total estimated development and construction cost for the proposed project is $54,007,788, which includes $26,295,016 in Homekey+ capital funding and $3,558,115 in Homekey+ operational funding, $10,000,038 in NPLH capital funding and $8,147,660 in NPLH operational funding, $530,000 in Housing and Homelessness Incentive Program funds, and $5,476,959 in local contributions. The project proposes new construction to develop an 88-unit Homekey+ and NPLH funded facility, to include 56 one-bedroom units, 23 two-bedroom units, eight three-bedroom units, and one two-bedroom on-site manager’s unit. 45 of the units will be reserved for veterans with mental health or substance use disorder challenges who are at-risk of or experiencing homelessness. All tenants’ units shall be limited to populations with income at or below 30 percent of the Area Median Income (AMI) and will be referred through the Coordinated Entry System (CES).
Under the Standard Agreements, the County has committed to providing supportive services to the Sendero Commons PSH site for a period of 20-years (valued at $10,241,756), and to providing a rental subsidy to the 42 Homekey+ funded units that are further layered with NPLH funding for a 20-year period, which will be funded through Transitional Rent and the Behavioral Health Services Act (BHSA) (valued at $15,314,934). The Homekey+ award includes a combined $3,558,115 in operating funds to support the project. DBH intends to bring a Memorandum of Understanding (MOU) to your board at a later date for approval which will establish the roles and responsibilities of Sanger Homekey+, LP as the site owner and property manager and the County as the specialty mental health services provider and the rental subsidy provider to the 42 units that are further layered with NPLH funds.
The Standard Agreement varies from the standard County template as it includes one-way indemnification for the State. DBH has determined the benefits of these agreements as written outweigh any potential risks and recommends approval of the agreements.
Approval of first and third recommended actions will allow the County to accept Homekey+ and NPLH funds from HCD for the construction and development of the Sendero Commons PSH project.
Approval of the second recommended action will allow the Chairman to execute the Regulatory Agreement in substantially the same form as the one on file with the clerk of the board at a later date. Following the close of the construction loan, the Chairman will sign the agreement which will be notarized and recorded against the project site.
OTHER REVIEWING AGENCIES:
The Behavioral Health Board will be notified of these agreements at their October 2026 meeting.
REFERENCE MATERIAL:
BAI # 36, February 10, 2026
BAI #7, June 10, 2025
BAI # 12, May 20, 2025
BAI # 8, February 11, 2025
BAI# 22, August 6, 2024
BAI# 20, January 4, 2022
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Standard Agreement w/ HCD for Homekey+
On file with Clerk - Homekey+ Regulatory Agreement
On file with Clerk - Standard Agreement w/ HCD for NPLH
CAO ANALYST:
Dylan McCully