DATE:
October 21, 2025
09
TO:
Board of Supervisors
SUBJECT
Title
RECEIVE UPDATE ON BEHAVIORAL HEALTH CAPITAL FACILITY PROJECT RECOMMENDED FOR PROPOSITION 1 INFRASTRUCTURE BOND ROUND 2 GRANT FUNDING, AUTHORIZE AND ADOPT A RESOLUTION TO APPLY FOR THE GRANT FUNDS, AND DIRECT THE DEPARTMENT OF GENERAL SERVICES TO EXPLORE THE FEASIBILITY OF A PUBLIC-PRIVATE PARTNERSHIP MODEL (DISTRICTS: ALL)
Body
OVERVIEW
In March 2024, California voters passed Proposition 1 that includes the Behavioral Health Services Act and the Behavioral Health Infrastructure Bond Act of 2023. This legislation authorized $6.38 billion in general obligation bonds to expand behavioral health treatment, residential care settings, and housing to support people with mental health conditions and substance use disorders. Funds from the bonds were allocated to competitive grants for facilities that provide behavioral health treatment and residential settings, including tribal entities and serving individuals who are homeless or at risk of homelessness with behavioral health needs.
As part of Proposition 1, in July 2024, the California Department of Health Care Services (DHCS) released a request for applications for the Bond Behavioral Health Continuum Infrastructure Program (Bond BHCIP) Round 1: Launch Ready grant program that provided $4.4 billion in competitive grant funds to counties, cities, tribal entities, and nonprofit and for-profit entities for behavioral health capital infrastructure. The County of San Diego (County) Behavioral Health Services (BHS) applied for Bond BHCIP Round 1 funds. On May 6, 2025, BHS received a notice of a grant award, totaling $29.8 million of funding, with $21.9 million for the Substance Use Residential and Treatment Services (SURTS) facility and $7.9 million for the Children's Crisis Residential Care facility.
In June 2025, DHCS released a second request for applications for the Bond BHCIP Round 2: Unmet Needs grant program, providing $800 million in co...
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