Resolution authorizing the Department of Public Health to enter into a Grant Agreement for a term commencing on the execution of the Grant Agreement, through June 30, 2030, between the City and County of San Francisco (“City”), acting by and through its Department of Public Health (“DPH”), and the California Department of Health Care Services and its third-party administrator Advocates for Human Potential, Inc., having anticipated revenue to the City of $21,347,760; including a provision allowing for the recapture of allowable project expenses incurred retroactive to May 6, 2025; including a Permitted and Restricted Use at 887 Potrero Avenue; retroactively authorizing DPH to accept and expend grant funds for the period of May 6, 2025, through June 30, 2030; authorizing the Grantor to apply for a Receiver in the event of the City’s default; and authorizing DPH to enter into amendments or modifications to the Grant Agreement that do not materially increase the obligations or liabilities of the City and are necessary to effectuate the purpose of the Grant.

This resolution authorizes the Department of Public Health (DPH) to enter into a Grant Agreement with the California Department of Health Care Services (DHCS) and its administrator, Advocates for Human Potential, Inc. (AHP). The agreement, effective from its execution through June 30, 2030, provides an anticipated revenue of $21,347,760 to the City. This funding is for the expansion of the Mental Health Rehabilitation Center (MHRC) at 887 Potrero Avenue, addressing the critical need for locked subacute mental health treatment beds. The agreement allows for the recapture of expenses incurred retroactively to May 6, 2025. It also includes provisions for DHCS to apply for a Receiver in case of City default and permits DPH to enter into necessary amendments that do not materially increase the City's obligations. The grant funding is part of the Behavioral Health Continuum Infrastructure Program (BHCIP) Round 1, utilizing state bond funding approved by voters.

This grant will fund the expansion of critical mental health treatment services at 887 Potrero Avenue, aiming to increase the availability of locked subacute treatment beds. This is expected to improve access to care for individuals with severe behavioral health needs, potentially reducing homelessness, incarceration, and unnecessary hospitalizations.

high