CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: DECEMBER 9, 2025
FROM: HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: APPROVAL OF RESIDENTIAL TREATMENT SUBRECIPIENT AGREEMENTS WITH HOPE HOUSE INC. AND HEALTHCARE
SERVICES, INC. FOR THE EXPANSION OF THE ANAHEIM
COLLABORATIVE COURT EVALUATING STRATEGIES AND
SOLUTIONS (ACCESS) PROGRAM
ATTACHMENT (Y/N): YES ITEM # 14
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the Anaheim City Council, by motion:
1. Approve a subrecipient agreement with Hope House, Inc., in substantial form, for residential treatment services for an initial one-year term in the amount of $365,000, with an additional one-year option, for a maximum compensation amount not to exceed $730,000; and
2. Approve a subrecipient agreement with Healthcare Services, Inc., dba Anaheim Lighthouse, in substantial form, for residential treatment services for an initial one- year term in the amount of $500,000, with an additional one-year option, for a maximum compensation amount not to exceed $1,000,000; and
3. Authorize the Housing and Community Development Director, or her designee, to execute all agreements and other documents necessary to implement and administer the subrecipient agreements as long as the maximum compensation does not increase and authorize de minimis changes that do not substantially change the terms and conditions of the agreements, so long as the changes are determined to be de minimis by the City Attorney’s Office.
BACKGROUND:
On November 19, 2024, the City Council ratified the submission and funding acceptance of the Proposition 47 grant application to the California Board of State and Community Corrections and the Justice and Mental Health Collaboration Program (JMHCP) grant application to the Department of Justice in the amount of $8,000,000 and $550,000, 201 S. Anaheim Blvd.
Tenth Floor
Anaheim, CA 92805
Tel: (714) 765-4300
Fax: (714) 765-4360
www.anaheim.net
Proposition 47 MOU and Opioid Settlement Fund Agreement for the Expansion of the ACCESS Program December 9, 2025
respectively. The two grant applications facilitate the expansion of the Anaheim Collaborative Court Evaluating Strategies and Solutions (ACCESS) program, expanding treatment, housing, and supportive services for justice-involved individuals struggling with mental health and substance use disorders. Additionally, the City of Anaheim is one of over 3,000 jurisdictions nationwide receiving funding from the National Opioid Settlement Funds (OSF). Anaheim is projected to receive $13.7 million over 18 years, with $4.7 million received to date, to support opioid abatement activities.
ACCESS, led by the City Attorney’s Office Prosecution Division (CAO) in collaboration with the Orange County Superior Court and the Orange County Public Defender’s Office, focuses on misdemeanor offenders with acute drug addictions and mental health issues, most of whom are chronically homeless and have been resistant to services. The goal of the program is to reduce or possibly eliminate repeat offenses by providing the services necessary for participants to fully reintegrate into the community through the provision of individual wellness plans. As of October 2025, the ACCESS program evaluated 627 participants and accepted 449 individuals into diversion plans. Of engaged individuals, 79 have graduated, and most have earned case dismissals, further reducing barriers to housing and stability.
The Anaheim Housing and Community Development Department (HCD) has acted as a key partner in the pilot phase of ACCESS by leveraging existing HCD homelessness and public services contracts to support early efforts. On November 19, 2024, action by City Council authorized the entirety of the $8,550,000 in grants to be added to the HCD budget while waiving Council Policy 4.1 with the intent of entering into service contracts with named organizations and nonprofits that have been instrumental to the initial success of the ACCESS program.
On June 17, 2025, City Council approved five agreements and an MOU totaling $5,574,043 under Proposition 47 and the Justice and Mental Health Collaboration Program (JMHCP) for the expansion of the ACCESS program:
Mariposa Women and Family Center
Anaheim Community Hospital, LLC
JMh–Anaheim Foundation, Inc. dba Love Anaheim
Strength and Resilience Family Counseling Inc. Going Forward Justice Innovation, Inc.
City Attorney’s Office
Subsequently, on August 26, 2025, City Council approved an additional MOU totaling $385,826 with the Orange County Public Defender’s Office for a Public Defender Social Worker position.
The residential treatment agreements with Hope House and Healthcare Services represent the final phase of the ACCESS program expansion funded through Proposition 47, with supplemental funding from the National Opioid Settlement. While the initial group of agreements and the Public Defender’s Office Memorandum of Understanding were approved by City Council on June 17, 2025, and August 26, 2025, respectively, the residential treatment contracts were still under development.
These agreements are now being brought forward in finalized form to complete the network of treatment and recovery services needed to bring about the ACCESS program’s intended expansion.
Proposition 47 MOU and Opioid Settlement Fund Agreement for the Expansion of the ACCESS Program December 9, 2025
DISCUSSION:
On September 5, 2025, HCD released a Request for Proposals (RFP) through OpenGov to solicit qualified providers for residential treatment beds. The city was specifically seeking beds that provide a 3.1 to 3.5 American Society of Addiction Medicine (ASAM) level of care. The specific offerings of each level include:
ASAM 3.1 represents a low-intensity residential level of care, where individuals receive 24-hour support and supervision from trained staff, but do not require medical monitoring or detoxification services. The facility offers individual and group therapy, relapse prevention, life-skills development, and culturally responsive, trauma-informed care.
ASAM Level 3.2, Withdrawal Management (Detoxification) provides 24-hour, clinically managed and medically monitored care for individuals experiencing acute withdrawal from alcohol, opioids, or other substances. Services include round-the- clock nursing oversight, daily evaluations by a physician or nurse practitioner, and medication-assisted treatment when indicated to safely manage withdrawal symptoms. The goal at this level is medical stabilization, helping individuals safely transition from active withdrawal to a state where they can fully participate in residential treatment. Clients typically remain at this level for five to seven days, depending on medical necessity.
ASAM Level 3.5 (Clinically Managed High-Intensity Residential Services) delivers a highly structured, 24-hour therapeutic environment with intensive clinical programming for individuals who require close supervision and support to prevent relapse. Participants engage in daily group therapy, individual counseling, and evidence-based behavioral interventions such as cognitive behavioral therapy (CBT), dialectical behavioral therapy (DBT), and trauma-focused modalities. This level is appropriate for participants with co-occurring mental health conditions or those transitioning directly from detox who still need intensive stabilization and behavior modification.
An information session was held on September 10, 2025, and the solicitation closed on September 19, 2025. One qualified proposal was received from Healthcare Services, Inc.
Healthcare Services, Inc., doing business as Anaheim Lighthouse for ASAM 3.2 (Detoxification) and ASAM 3.1 and 3.5 (Residential Treatment) services. This includes medically monitored residential withdrawal management (detoxification) and clinically managed high- and low-intensity residential treatment. Anaheim Lighthouse has been a longstanding partner within the City’s system of care, consistently collaborating to support individuals impacted by substance use disorder. For several years, the provider has also extended sponsorship (free) beds to Anaheim residents, allowing one or two individuals each month to access treatment at no cost. This continued partnership demonstrates their strong commitment to recovery and community impact. By offering ASAM 3.1 through 3.5 levels of care under one roof, Healthcare Services allows participants to move fluidly between detoxification, high-intensity treatment, and lower-intensity residential services without disruption or transfer to another facility. This integrated model ensures continuity of care, reduces treatment gaps, and supports sustained recovery outcomes, particularly beneficial for ACCESS participants with complex behavioral health and substance use needs.
Proposition 47 MOU and Opioid Settlement Fund Agreement for the Expansion of the ACCESS Program December 9, 2025
Hope House was one of the community-based organizations identified in the City’s Proposition 47 grant application and subsequently authorized by City Council on November 19, 2024, to be included in the Housing and Community Development Department budget while waiving Council Policy 4.1 for contract execution. The agency operates a 40-bed, licensed American Society of Addiction Medicine (ASAM) Level 3.1 Residential Treatment Program in Anaheim, offering a structured, home-like environment that focuses on recovery, personal accountability, and skill-building for adults with substance use disorders. Through this agreement, Hope House will dedicate five beds for ACCESS participants for 30- to 90- day stays (not to exceed 90 days), creating consistent local placement capacity for participants referred through the City Attorney’s Office, HCD staff, or partner agencies.
Organization Funding Source Daily
Rate
Service
Participants
Housed per
Month (Beds)
Hope House Proposition 47 $200 3.1 ASAM 5*
$600 3.2 ASAM 3*Healthcare Services, Inc. Proposition 47 & OSF $500 3.1 or 3.5 ASAM 3*
*Actual number of persons served depends on the length of stay.
While Healthcare Services’ proposed daily rates of $600 for detoxification and $500 for Residential Treatment are higher than the average costs at Hope House, they remain consistent with the higher level of clinical intensity and medical oversight required at ASAM
3.2 and 3.5 levels of care. In contrast, Hope House’s ASAM 3.1 program does not include detoxification or medical services. Participants requiring detoxification prior to admission at Hope House would typically receive those services through Anaheim Community Hospital (ACH), which is contracted with the City under Proposition 47 to provide medically supervised detoxification in a hospital setting at an average rate of up to $1,400 per day.
When considering the combined cost of detoxification and residential treatment across separate providers, the overall expense is comparable to Healthcare Services’ integrated model, which delivers both levels of care within a single, continuous treatment setting.
The following table outlines the total grant funding and allocations over time by organization. All proposed agreements under the ACCESS program expansion have been finalized and are being presented for City Council consideration.
Organization Funding Source Amount Service Status
Hope House Proposition 47 $730,000 Residential Treatment Pending Approval
Healthcare Services,
Inc.
Proposition 47 &
Opioid Settlement Fund 1,000,000 Residential Treatment Pending Approval
Subtotal of Finalized Grants $1,730,000
Strength and
Resilience
Family Counseling
Inc.
Going Forward
Proposition 47 &
JMHCP $700,000
Mental Health Clinician
Services and
Assessment
Fully Executed
Mariposa Women and
Family Center Proposition 47 $2,100,000 Case Management and Housing Navigation Fully Executed
Proposition 47 MOU and Opioid Settlement Fund Agreement for the Expansion of the ACCESS Program December 9, 2025
Anaheim Community
Hospital, LLC Proposition 47 $1,500,000
Acute Care and
Intensive
Outpatient Treatment
Fully Executed
Love Anaheim Proposition 47 $288,750 Workforce
Opportunities
Fully Executed
Justice Innovation, Inc. Proposition 47 &
JMHCP $640,000
Technical Evaluation
and
Project Monitoring
Fully Executed
City Attorney’s Office
Proposition 47 &
Opioid
Settlement Funds
$345,293 Court Coordination and
Program Administration Fully Executed
OC Public Defender’s
Office Proposition 47 $385,826 Social Worker Court
Administration
Fully Executed
Subtotal of Subcontracts $5,959,869
Subtotal of Software Costs $425,000
Subtotal of Equipment Costs $75,000
Subtotal of Training Costs $221,000
Subtotal of Administrative Costs $468,724
Grand Total $8,879,593
These requests directly support the City’s Strategic Plan Goal B: Enhance Livability, Strategy 9: Maintain and expand services to address homelessness and its impacts.
IMPACT ON BUDGET:
The Housing and Community Development Department’s FY2025/26 budget already includes funds for the proposed activities.
Respectfully submitted, Concurred by,
Grace Ruiz-Stepter Robert Fabela
Housing and Community City Attorney
Development Director
Attachments:
1. Proposition 47 Subrecipient Agreement with Hope House
2. Proposition 47 and Opioid Settlement Funds with Healthcare Services, Inc.