Resolution approving an agreement between the City and County of San Francisco, acting by and through its Department of Public Health (DPH), and the California Department of Social Services and its third-party administrator BDO Government Services, LLC, having anticipated revenue of $7,431,615 for a performance base period commencing on execution of the Grant Agreement through June 30, 2029; and authorizing DPH to enter into amendments or modifications to the agreement that do not materially increase the obligations or liabilities to the City and are necessary to effectuate the purposes of the agreement or this Resolution.

This resolution approves a grant agreement for $7,431,615 from the California Department of Social Services (CDSS) to the San Francisco Department of Public Health (DPH) for Community Care Expansion (CCE) Preservation Projects. The primary goal is to prevent the closure of licensed residential adult and senior care facilities in San Francisco that serve "Qualified Residents" – individuals receiving Supplemental Security Income/State Supplementary Payment (SSI/SSP) and Cash Assistance Program for Immigrants (CAPI), with a special focus on those experiencing or at risk of homelessness.## Funding Breakdown & TimelineThe total grant includes $3,198,797 for Operating Subsidy Payments (OSP) and $4,232,818 for Capital Projects (CP). The overall performance period for the agreement runs from its execution through June 30, 2029. Specifically, OSP funds are available through June 30, 2029, while CP funds are available through December 31, 2026.## Program Administration & RequirementsBDO Government Services, LLC acts as CDSS's third-party administrator, and DPH plans to engage the California Mental Health Services Authority (CalMHSA) as its own third-party administrator to manage fund disbursement and provide technical assistance to selected facilities. A 10% match is required for Capital Projects; however, there is a conflict as the resolution states this match will come from the City's General Fund, while the grant agreement specifies that state general funds cannot be used for the match. Facilities receiving OSP funds must record a deed restriction to ensure continued licensed residential care for the agreement's term. Construction projects exceeding $1,000,000 will require payment and performance bonds, and administrative costs for San Francisco are capped at 10% of the Program Funds.## Non-Standard ClausesThe agreement incorporates several non-standard clauses, including mandatory binding arbitration for disputes, the City's obligation to indemnify and hold harmless CDSS and BDO GS, and a waiver of the City's right to seek special, consequential, or punitive damages from these entities.

This agreement directly impacts San Francisco residents by preserving essential adult and senior care facilities, preventing their closure and ensuring continued housing and support for vulnerable populations. It provides crucial operating subsidies and funding for facility repairs and upgrades, benefiting low-income seniors, adults with disabilities, and immigrants, particularly those experiencing or at risk of homelessness. This initiative helps maintain a vital part of the city's care continuum, offering stability and improved living conditions for those most in need.

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