City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2026-00080 1/13/2026
Authorization to Receive State Capacity and Infrastructure, Transition, Expansion and Development Program - Intergovernmental Transfer (CITED-IGT) Funding File ID: 2026-00080
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or designee to: 1) accept the State of California's ("State") Department of Health Care Services (“DHCS”) Capacity and Infrastructure, Transition, Expansion, and Development (“CITED”) Intergovernmental Transfer (“IGT”) funding award and execute the attached Terms and Conditions with the State and any other documents required by DHCS to secure the CITED-IGT funding, for an amount not to exceed $336,142; 2) establish the CITED-IGT Grant Project (G23000300); and 3) establish the revenue and expenditure budgets in the amount of $336,142 (Operating Grants, Fund 2702) in the CITED-IGT Grant Project (G23000300).
Contact: Brian Pedro, Director, (916) 808-7816, [email protected], Department of Community Response
Attachments:
1-Description/Analysis
2-Resolution
3-DHCS Terms and Conditions
Description/Analysis
Issue Detail: Homelessness is an issue that impacts communities without regard to geographic or political boundaries and for which there is no single answer or solution. The Department of Community Response (“DCR”) deploys a multifaceted approach to address this complex problem. In an effort to better serve people experiencing homelessness in Sacramento, DCR is seeking City Council authority to accept funding for DCR’s award of CITED-IGT funding, which will assist DCR’s efforts to launch a new California Advancing and Innovating Medi-Cal (“CalAIM”) Community Supports Program, enabling the department to enhance the work it is already doing to support the City’s unhoused community.
Launched in 2022, Providing Access and Transforming Health (“PATH”) is a five-year $1.85 billion California Department of Health Care Services (“DHCS”) funded initiative to build up the capacity and
File ID: 2026-00080 1/13/2026
infrastructure of on-the-ground entities to successfully participate in the Medi-Cal delivery system.
Serving Medi-Cal members, CalAIM supports high-needs enrollees by coupling health services with a range of crucial non-medical services, including housing support. Under the specific PATH Capacity and Infrastructure Transition, Expansion and Development (“CITED”) Initiative, funding is provided to awardees to support the delivery of CalAIM services, which fall into two primary categories: Enhanced Care Management and Community Supports.
In January 2025, DHCS opened the application period for the last round of funding for the CITED Initiative, and in May 2025, DCR applied for funding to develop and implement the City’s new CalAIM Community Supports Program. In November 2025, DCR was notified that though its application was not approved for the originally applied for PATH CITED funding, DHCS was awarding DCR a related funding opportunity, CITED Intergovernmental Transfer (“IGT”) funding, in the amount of $336,142.
CITED-IGT funding includes 50% federal funding and a 50% non-federal share contributed by the awardee with a funding period through December 31, 2026. As such, the total award amount is $336,142, which includes federal funds in the amount of $168,071 and $168,071 in non-federal shares, or a DCR awardee match.
The CITED-IGT funding will support DCR’s work to develop the infrastructure and systems for the department’s CalAIM Community Supports Program. The CalAIM program will standardize and enhance access to several Community Supports services, including Housing Transition Navigation Services, Housing Deposits, Housing Tenancy and Sustaining Services, Day Habilitation Programs and Transitional Rent. Dedicated DCR staff will oversee the provision of these Community Supports services across the City’s shelter locations, as well as within the street outreach program. DCR plans to contract with Housing for Health California, a nonprofit organization that provides administrative and billing services to CalAIM providers.
This staff report seeks City Council authority to accept funding for DCR’s award of CITED-IGT funds, enter into an agreement with the State in the form of DHCS’ “Terms and Conditions,” and establish the grant projects necessary to process the CITED-IGT funding.
Policy Considerations: Per the City’s Fiscal Year 2025/26 Budget Resolution (Resolution No. 2025- 0162), City Council approval is required for any grant involving the matching of funds from City resources.
Economic Impacts: None.
Environmental Considerations: This report concerns administrative activities and government fiscal activities that do not constitute a “project” and are not subject to the provisions of California Environmental Quality Act (CEQA) (CEQA Section 15378(b)(2)). Additionally, pursuant to CEQA Guidelines section 15061(b)(3), these activities are exempt from the California Environmental Quality Act (CEQA) because they do not have the potential for causing a significant effect on the environment.
File ID: 2026-00080 1/13/2026
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Services provided under this agreement address the ongoing need for supportive services for individuals experiencing homelessness in the City.
Financial Considerations: Sufficient funding is available (Measure U Fund, Fund 2401) in DCR’s Office of Community Outreach (23001021) operating budget for the required 50% match of City funds ($168,071) to receive the total CITED-IGT grant award of $336,142.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO. 2026-XXXX
Adopted by the Sacramento City Council
January 13, 2026
Accepting the State CITED Intergovernmental Transfer Funding and Establishing the CITED-IGT Grant Project (G23000300) and the Revenue and Expenditure Budgets
BACKGROUND
A. In January 2025, the State of California’s (“State”) Department of Health Care Services (“DHCS”) opened the application period for the last round of funding for the Providing Access and Transforming Health (“PATH”) Capacity and Infrastructure Transition, Expansion, and Development (“CITED”) Initiative.
B. Launched in 2022, PATH is a five-year $1.85 billion DHCS funded initiative to build the capacity and infrastructure of on-the-ground entities to successfully participate in the Medi -Cal delivery system as California implements Enhanced Care Management (“ECM”) and Community Supports (“CS”) under California Advancing and Innovating Medi -Cal (“CalAIM”). Under the specific PATH CITED Initiative, funding is provided to awardees to support the service delivery of ECM and CS.
C. In May 2025, DCR submitted an application requesting funding to develop and implement the City’s new CalAIM Community Supports Program. The CalAIM program will standardize and enhance access to several CS services, including Housing Transition Navigation Services, Housing Deposits, Housing Tenancy and Sustaining Services, Day Habilitation Programs, and Transitional Rent.
D. In November 2025 , DHCS notified DCR that though its application was not approved for the originally applied for PATH CITED funding, DCR was selected to receive a related funding opportunity, CITED Intergovernmental Transfer (“IGT”) funding, in the amount of $336,14 2. CITED-IGT funding includes 50% federal funding and a 50% non -federal share contributed by the awardee. As such, the total award amount is $336,142, which includes federal funds in the amount of $168,071 and $168,071 in non-federal shares, or a DCR awardee match.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1.
The City Manager or designee is authorized to accept the DHCS CITED-IGT funding award and execute the DHCS Terms and Conditions for an amount not to exceed $336,142.
SECTION 2.
The City Manager or designee is authorized to establish the CITED-IGT Grant Project (G23000300).
SECTION 3.
The City Manager or designee is authorized to establish revenue and expenditure budgets in the amount of $336,142 (Operating Grants, Fund 2702) in the CITED-IGT Grant Project (G23000300).
1 California Providing Access and Transforming Health
Capacity and Infrastructure, Transition, Expansion and Development Program – Intergovernmental Transfer
Acknowledgement of Grant Terms and Conditions
As an express condition of receiving grant funds from the California Department of Health Care Services (DHCS) under the Capacity and Infrastructure, Transition, Expansion and Development (CITED) Program – Intergovernmental Transfer (IGT), which is part of the California Providing Access and Transforming Health (“PATH”) Initiative, __________________________________________________________________________ (Awardee), whose business address is ___________________________________________________________________ and whose Federal Tax Identification number is _________________________, hereby warrants and guarantees that it will comply with all applicable federal, state, and local laws and regulations, as well as with as the following terms and conditions:
I. Role of Third-Party Administrator. DHCS has designated Public Consulting Group LLC (PCG) as the Third-Party Administrator (TPA), to administer the grant program and to communicate with Awardee with respect to grant administration in connection with the CITED Program. Awardee understands that the TPA is acting solely as a third-party administrator on behalf of DHCS and is not liable or responsible for DHCS decisions or actions. Awardee hereby releases and holds harmless the TPA and its officers, agents, employees, representatives, and/or designees from and against any liability, actions, claims, demands, or suits, and all related costs, attorney fees, and expenses arising out of, or relating to the receipt of grant funds. DHCS shall not be liable to Awardee for any incidental, indirect, special, punitive, or consequential damages, including, but not limited to, such damages arising from any type or manner of commercial, business, or financial loss, even if PCG or DHCS had actual or constructive knowledge of the possibility of such damages and regardless of whether such damages were foreseeable. Awardee hereby releases and holds harmless DHCS and its officers, agents, employees, representatives, and/or designees from and against any liability, actions, claims, demands, or suits, and all related costs, attorney fees, and expenses arising out of, or relating to receipt of grant funds and associated activities in connection with CITED.
2 II. Eligibility. To receive grant funds under this program, the Awardee must be actively contracted with a Medi-Cal Managed Care Plan (MCP) or an MCP’s authorized subcontractor or other entity authorized to contract with for the provision of Enhanced Care Management (ECM) and/or Community Supports, or have a signed attestation letter from an MCP or an MCP’s authorized subcontractor or other entity authorized to contract with that they strongly intend to contract with Awardee to provide ECM and/or Community Supports within the timeframe of these Terms and Conditions. If the intent or ability to contract with an MCP has changed, ended, or been altered, Awardee must contact the TPA within twenty-four (24) hours to advise of this change. If there is no longer a contract as enumerated above or documented intent to contract, the grant may be terminated pursuant to Section VI, below. To receive grant funds through CITED-IGT, the Awardee must contribute the non- federal share through IGT. Entities eligible to apply for CITED-IGT include:
cities, counties, other local government agencies and public hospitals.
III. Use of Funding.
a. Awardee Project Plan. The awardee shall use grant funds exclusively to implement the project plan as outlined in the awardee’s submitted and approved grant application, unless otherwise approved by the TPA and DHCS.
b. Program Guidance and Conditions. In using the funds to implement the project plan, Awardee must follow all terms, conditions, and guidelines provided in the CITED Program guidance, found at www.ca-path.com., and in these Terms and Conditions.
c. Changes and Modifications. Changes and modifications made to the submitted and approved grant application or to the program guidelines may be proposed by Awardee in writing and are subject to the approval of DHCS. No change or modification will be valid without the approval of DHCS.
d. Expiration of Funds. It is agreed that all funds awarded must be completely expended by the last progress report available. Failure to comply with this requirement will result in the recoupment of available funds. e. Discontinued Services. It is agreed that all funds awarded must be used on services that have not been discontinued by the MCP. Funds must be
3 used on eligible services that are offered by the MCP in the service area where CITED funds will be used.
IV. Grant Amount and Method of Payment.
a. Grant Amount. The total grant amount awarded to Awardee shall not exceed ___________________. Awardee acknowledges that the grant amount has been determined by DHCS and will not be negotiated. Awardee shall certify that the funds transferred qualify for federal financial participation pursuant to 42 Code of Federal Regulations (CFR) part 433, subpart B, and not derived from impermissible sources.
i. The IGT funds will qualify for federal financial participation per 42 CFR part 433, subpart B, and will not be derived from impermissible sources, such as recycled Medicaid payments, federal money excluded from use as a state match, impermissible taxes, and non- bona fide provider-related donations, per STC 126.a. Sources of non-federal funding shall not include provider taxes or donations impermissible under section 1903(w) of the Social Security Act, impermissible IGT from providers, or federal funds received from federal programs other than Medicaid (unless expressly authorized by federal statute to be used for claiming purposes, and the federal Medicaid funding is credited to the other federal funding source).
For this purpose, federal funds do not include Public Hospital Redesign and Incentives in Medi-Cal (PRIME) payments, patient care revenue received as payment for services rendered under programs such as the Designated State Health Programs, Medicare, or Medicaid.
Total Fund
(Award Amount)
State Share IGT
(Awardee
Contribution)
Federal Share
b. Method of Payment. Following the receipt and approval of Awardee’s CITED-IGT Progress Report, DHCS will issue requests to Awardee for the necessary IGT amounts, provided Awardee has submitted all required information, forms, and documentation, including Awardee’s signature on this Acknowledgement, required to facilitate payment. Awardee shall make IGT of funds to DHCS in the amount specified within seven (7) days of
4 receiving the State’s request. If the IGTs are made within the requested timeframe, DHCS will issue the payment within fourteen (14) days after the transfers are made.
c. Reliance on Provided Information. DHCS and the TPA are entitled to rely on the accuracy and completeness of information provided by Awardee in the disbursement of grant funds.
V. Reporting Requirements.
a. Quarterly Reports. Awardee is required to submit semi-annual progress reports to the TPA through secured data portal specified by DHCS and PCG every six (6) months until the final project milestones described in the submitted and approved grant application are met. Each progress report must include a detailed description of completed milestones, status of activities for that quarter, and any deviations from the agreed-upon milestones. Awardee should expect to include documentation providing proof that expenditures were made for permissible items and activities as described in the approved application.
b. Reporting Schedule. The reporting schedule is as follows:
CITED Round 4 IGT Awardees
Progress
Report
Report
Measurement
Period
Open Date Due Date
Month of
Funds
Disbursement
(Estimate)
Midway January 1, 2026 –
June 30, 2026
June 23,
2026 July 15, 2026 October 2026
Final July 1, 2026 –
December 31, 2026
December
21, 2026
January 15,
2027 April 2027
c. Failure to Report. If Awardee fails to submit any semi-annual report within five (5) calendar days of the report becoming due, DHCS may terminate the grant pursuant to Section VII, below.
5 VI. Additional DHCS Terms and Conditions.
a. Funding received through the CITED Program will not duplicate or supplant1 funds received through previous CITED funding rounds; other programs or initiatives; or by other federal, state, or local funding sources. b. DHCS may, in its reasonable discretion, modify payment dates or amounts and will notify Awardee of any such changes in writing. c. DHCS or the TPA may conduct outreach to any Awardee to request additional information, ask questions, or seek clarification on information provided in a CITED Application or CITED Progress Report. If outreach is conducted by DHCS or the TPA, Awardee must respond within three (3) business days, unless an alternative timeline is approved by DHCS or the TPA. Failure to respond within this timeframe may result in delay or deferred fund disbursement.
d. Awardee may be subject to audit or inquiry with respect to the receipt and use of grant funds at any time. Awardee must respond to inquiries, communications, and reasonable requests for additional information or documentation from DHCS or the TPA within one (1) business day of receipt and must provide any requested information within three (3) business days, unless an alternative timeline is approved by DHCS or the TPA.
e. Awardee must alert DHCS and the TPA within twenty-four (24) hours of identifying any circumstances that prevent carrying out any of the activities described in the submitted and approved grant application or of identifying any circumstances that prevent provision of the non-federal share via IGT. In such cases, Awardee may be required to return unused funds to DHCS if an alternative solution cannot be reached.
1 Other federal, state, or local funding sources and programs that are complementary to or enhance PATH funds will not be considered supplanted by PATH funds or duplicate reimbursement. If applicable, Awardee must describe how similar or related services and activities supported by other federal, state or local funding sources are complemented or enhanced by efforts funded by PATH. For example, if other funding 1) may allow additional/different populations to be served or 2) may allow additional/different services to be provided beyond those funded by PATH. To the extent otherwise allowable PATH activities are reimbursed by other federal, state, or local programs, PATH funding must not duplicate such reimbursement.
6 f. All inquiries and notices relating to this Agreement should be directed to the representatives listed below:
Department of Health Care
Services, Managed Care
Quality & Monitoring
Division
Organization’s Name:
Branch Chief, Managed Care
Programs Oversight Branch
Title:
Attention: Michel Huizar Attention:
Email:
[email protected]
Email:
General CITED Program questions may be directed to [email protected] [email protected]
g. DHCS and the TPA may rely on the authority of the above-named individual to speak and act on behalf of Awardee. Either party may make changes to the information above by providing written notice to the other party within twenty-four (24) hours. Said changes shall not require an amendment to this Agreement.
h. The awardee will retain all records and documentation related to the receipt and use of PATH grant funds for no less than three (3) years beyond the date of final payment and will make such records available for complete inspection by DHCS upon request.
i. DHCS reserves the right to receive, use, and reproduce all reports and data produced, delivered, or generated by or about Awardee and its activities pursuant to this grant and may authorize others to do so without limitation, except as restricted by applicable law.
j. Awardee will not unlawfully discriminate against any person because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status in the conduct of any activity funded by DHCS. k. Awardee expressly agrees and acknowledges that DHCS is a direct beneficiary of the Terms and Conditions with respect to all obligations and
7 functions undertaken pursuant to the Terms and Conditions, and DHCS may directly enforce all provisions of the Terms and Conditions. l. Awardee is required to provide a signed contract with an MCP or an MCP’s authorized subcontractor or other entity authorized to contract with to provide ECM and/or Community Supports services. Alternatively, Awardee may submit a signed agreement indicating that the MCP or the MCP’s authorized subcontractor or other entity authorized to contract with intends to contract with Awardee for the provision of ECM and/or Community Supports.
i. If the awardee does not provide a signed contract by the last progress report, then the TPA will be withholding 5% or $5,000, whichever is lower.
m. If the Awardee’s above documentation is terminated and the awardee does not have another qualifying document that meets the above criteria, the awardee is precluded from receiving additional CITED funding until they provide the TPA and / or DHCS proof of a qualifying document as outlined above.
n. If Awardee's existing ECM/Community Supports contract with an MCP or an MCP’s authorized subcontractor or other entity authorized to contract with is terminated and Awardee does have an approved contract or intent- to-contract with another MCP or an MCP’s authorized subcontractor or other entity authorized to contract with, Awardee is precluded from receiving additional CITED funding until they provide the TPA and/or DHCS proof of an existing ECM/Community Supports contract or intent to contract with an MCP or an MCP’s authorized subcontractor or other entity authorized to contract with.
VII. Termination. Upon written notice to Awardee, DHCS may terminate the grant award in any of the following circumstances:
a. If Awardee fails to perform any one or more of the requirements set forth in these Terms and Conditions;
b. If any of the information provided by Awardee to DHCS or to the TPA is untruthful, incomplete, or inaccurate;
c. Upon Awardee’s debarment or suspension by competent authority, if such debarment or suspension precludes any activity funded by the grant;
8 d. Upon Awardee’s indictment in any criminal proceeding;
e. If Awardee is reasonably suspected of fraud, forgery, embezzlement, theft, or any other misuse of public funds;
f. If DHCS does not receive or maintain sufficient funds to administer the program;
g. If any restriction, limitation, or condition is enacted by Congress or by any other governing body or agency that impedes the funding or administration of the grant; or
h. For any other purpose deemed necessary or advisable by DHCS.
In the case of early termination, Awardee may be subject to audit, recoupment by DHCS of unused or misused funds, and/or preclusion from receiving additional funding, dependent upon the circumstances of the termination.
IN WITNESS THEREOF, APPLICANT has executed this Acknowledgment as of the date set forth below.
APPLICANT
______________________________________
(Signature)
______________________________________
(Printed Name and Title)
______________________________________
Date