Agenda Item   



                                                                                                                        ASR Control  22-000591




legal entity taking action:

Board of Supervisors

board of supervisors district(s):


SUBMITTING Agency/Department:

County Executive Office   (Approved)

Department contact person(s):

Doug Becht (714) 834-2323 



Lilly Simmering (714) 834-6234



Subject:  Approve Contract for Homekey Program Services


      ceo CONCUR

County Counsel Review

Clerk of the Board


Approved Agreement to Form




3 Votes Board Majority




    Budgeted: Yes

Current Year Cost:    $1,920,296

Annual Cost:               FY 2023-24 $1,784,784
FY 2024-25 $1,838,333
FY 2025-26 $1,893,482
FY 2026-27 $1,763,105




    Staffing Impact:


# of Positions:             

Sole Source:                 Yes

    Current Fiscal Year Revenue: N/A

  Funding Source:       See Financial Impact Section

County Audit in last 3 years: No



    Prior Board Action:                  12/14/2021 #S39G






Approve the Contract with American Family Housing for Huntington Beach Oasis Homekey Program Services, for the term of July 19, 2022, through June 30, 2027, for an amount not to exceed $9,200,000.



Pursuant to Contract Policy Manual Section 3.4-114, authorize the County Procurement Officer or Deputized designee to exercise a contingency contract cost increase, not to exceed a total of 10 percent of the Contract amount for the first year of the Contract, for the entire term of the Contract, including renewals and within the scope of work set forth in the Contract. The use of this contingency cost increase is subject to approval requirements established by the County Procurement Officer.



Authorize the County Procurement Officer or Deputized designee to execute the Contract with American Family Housing as referenced in the Recommended Action above.








Approval of the Contract with American Family Housing for the interim operations of the Homekey Program Services at the Huntington Beach Oasis site will support individuals experiencing homelessness within the Central Service Planning Area until the conversion of the site to Permanent Supportive Housing.





Building on the success of the first round of Homekey funds, the Homekey Program Round 2 (Homekey) is a State of California grant funding program administered by the California Department of Housing and Community Development (HCD). Approximately $1.45 billion in grant funding has been made available statewide as part of the Round 2 Notice of Funding Available (NOFA) to continue the State’s efforts to rapidly expand housing for persons experiencing homelessness or at risk of homelessness and who are inherently impacted by or at increased risk due to the COVID-19 pandemic. In Round 1 of Homekey, the County was awarded two Homekey projects for funding totaling over $25 million for the creation of 120 Permanent Supportive Housing (PSH) units. The Round 2 application opened on September 30, 2021, with a four-month priority application period for geographic region set-asides closing on January 31, 2022.


On December 1, 2021, the City of Huntington Beach held a special meeting where the City Council passed and adopted Resolution No. 2021-74, directing the collaboration with the County of Orange to submit an application for the Homekey Program grant funding. Additionally, the Huntington Beach City Council approved City allocated funding in the amount of $4.92 million, to support the required matching funds and the interim housing operations of the program.


On December 14, 2021, your Honorable Board of Supervisors (Board) passed a resolution authorizing the submission of a joint application to HCD in response to the NOFA, and to jointly apply for Homekey grant funds in a total amount not to exceed $34.5 million. The application for the Huntington Beach Oasis (HB Oasis) site located in the City of Huntington Beach was awarded $17 million in funding on February 16, 2022.


Scope of Service

HB Oasis, currently known as the Quality Inn and located at 17251 Beach Boulevard, will be operated by American Family Housing (AFH) as interim housing providing 62 units for a period of up to five years and will ultimately be converted into permanent supportive housing (PSH) for low-income residents. The program is proposing to serve persons experiencing literal homelessness, chronic homelessness and those fleeing domestic violence in the Central Service Planning Area in Orange County. Referrals into the program will be made through the Orange County Coordinated Entry System (CES).


AFH as the proposed contractor will provide trauma-informed supportive services with an emphasis on housing stabilization, self-sufficiency and supportive services to permanent housing. The aspects of property operations for the interim housing program will include: 24 hours a day, seven days per week onsite security and site supervision, support services, referral access line, daily meals and janitorial services. AFH will be responsible for direct service engagement in addition to mobilizing and leveraging community programs using co-location partnerships to meet the stabilization and housing goals for participants.


The HB Oasis Homekey Program will operate in accordance with the Orange County’s Standards of Care, a comprehensive set of administrative, operational, and facility-based standards designed to support the quality and consistency of program operations, evidence-based participant services, core organizational/administrative functions, and facility design/operations. The County, in collaboration with the County's Continuum of Care Board, The City of Huntington Beach and CalOptima will provide funding to support operating costs for the Homekey Program site. The proposed Contract MA-017-22011865 (Contract) for operations contains standard County language developed and approved by County Counsel.


Performance Measures

AFH will operate the HB Oasis project and provide 62 non-congregate units to persons experiencing homelessness in the Central SPA. The following performance measures will be a requirement of the Contract and ensure program flow that prioritizes participant housing goals and exits to permanent housing.


·         Bed occupancy of the program will remain at no less than 95 percent of full capacity

·         Individualized housing and service plans to be completed within 30 days of program                    enrollment for a minimum of 75 percent of participants.

·         100 percent of participants will be connected to the Coordinated Entry System

·         At minimum, 50 percent of the exits will be to permanent housing


See Attachment C for Sole Source Justification Form. In anticipation of the Round 2 Homekey NOFA, The County of Orange released two Requests for Information (RFI) to identify developers with experience for potential Homekey developments. An inter-agency team consisting of OC Health Care Agency, CEO Real Estate and Housing and Community Development staff reviewed RFI responses. During the RFI process, AFH and National CORE were able to demonstrate their control over the property as well as their experience in operating and converting sites as required within the Homekey Program NOFA. Upon selection of AFH and National CORE as the developer for this project, they became a co-applicant for the application submitted to the State. Based on their extensive experience operating the current Homekey Program 1 in the City of Stanton and past performance in housing development; this sole vendor was submitted as part of the County’s Project Homekey application to the State. The Orange County Preference Policy is not applicable to this contract award.


This Contract does not currently include subcontractors or pass through to other providers. See Attachment B for Contract Summary Form.


The County Procurement Office requests the Board approve the Contract with AFH for provision of interim operation services, as referenced in the Recommended Actions.





The appropriations of this Contract were included in Budget Control 017’s Adopted FY 2022-23 Budget for the Office of Care Coordination and will be included in the budgeting process for the future years.


Funding Source:

State: 80% (Homeless Housing Assistance & Prevention Grant [HHAP-CoC-Round 2 and HHAP-County-Round 2]; Cal-Optima Intergovernmental Transfers and State Housing; and Community Development Homekey Operating Funding)

Other: 20% (City of Huntington Beach)


The proposed Contract includes a provision stating the Contract is subject to and contingent upon, applicable budgetary appropriations approved by the Board for each fiscal year during the term of the Contract. If such appropriations are not approved, this Contract may be immediately terminated without penalty to the County.










Attachment A - Contract No. MA-017-22011865
Attachment B - Contract Summary Form
Attachment C - Sole Source Justification