Item Number: 13
City Council / Board of Directors
Written Communications
Meeting of: May 19, 2026
Submitted By:
Alex Jauregui, City Planner
Subject:
Housing and Homelessness Incentive Program 2026 - Agreement with San Bernardino County
Recommendation:
That the honorable City Council:
(1) Adopt Resolution No. 26-045 accepting the Housing and Homelessness Incentive Program (HHIP) 2026 grant funding in the amount of $500,000 to support the fiscal sustainability of the Victorville Wellness Center, supportive case management, and assist with homelessness prevention;
(2) Authorize the City Manager or his designee to finalize all documents needed to execute the HHIP 2026 contract and administer the overall project; (3) Authorize the City Manager or his designee to make any necessary amendments to the contract in as deemed necessary by San Bernardino County or the City Attorney; and
(4) Adopt Resolution No. 26-046 amending the annual budget for fiscal year 2025- 2026 to appropriate and authorize expenditure of an additional $500,000.
Fiscal Impact:
The proposed action will result in an increase of $500,000 in the City's annual budget for fiscal year 2025-2026 to support the ongoing operation of the Wellness Center, case management, and homelessness prevention. To administer the grant, the City's Homelessness Solutions staff, utilizing the existing client management system and local Homeless Management Information System (HMIS), will oversee its implementation. The following budget table provides a summary of the revenue and expenditure accounts related to this item.
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Account Code Account Description Amount
2657500E-43100-20597
(Revenue) HHIP 2026 Grant $500,000
2657500E-52300-20597
(Expenditure)
HHIP 2026 Grant - Contract
Services $500,000
Strategic Plan Goal:
This subject funding opportunity aligns with Goal D, Strategy 5 of the 2023-2026 Strategic Plan, which states that in order to achieve the goal of reducing homelessness, the City should strengthen collaboration with the County and other entities to identify new funding opportunities and expand partnerships for homelessness services.
Inasmuch as the proposed funding source directly implements the strategy noted above by partnering with San Bernardino County to receive HHIP funding, acceptance of the subject funds is compliant with the City's 2023-2026 Strategic Plan.
Background:
Grant History/Purpose
In alignment with Section 9817 of the American Rescue Plan Act of 2021, the California Department of Health Care Services (DHCS) established the Medi-Cal Home and Community-Based Services (HCBS) Spending Plan to expand and strengthen services for vulnerable populations. A key component of this plan is the Housing and Homelessness Incentive Program (HHIP), a $1.288 billion statewide initiative aimed at improving health outcomes by addressing homelessness and housing instability as critical social drivers of health.
HHIP provides one-time incentive funding to Medi-Cal Managed Care Plans (MCPs), which partner with local Continuums of Care (CoCs) and jurisdictions to build capacity, strengthen cross-sector partnerships, and connect Medi-Cal members to housing and supportive services. Through this initiative, the Inland Empire Health Plan (IEHP), in partnership with the San Bernardino County Continuum of Care, made up to $10 million in HHIP funding available to support regional housing and homelessness efforts. HHIP funds are intended to support housing-focused interventions for IEHP members who are experiencing or at risk of homelessness, with an emphasis on transitioning individuals from unsheltered conditions into safe, stable, and permanent housing. Funded programs are expected to demonstrate measurable improvements in both housing stability and health outcomes.
On October 31, 2024, the County of San Bernardino released a competitive Request for Proposals (RFP) for HHIP funding. The City submitted an application on December 19, 2024, seeking to expand its homelessness response efforts through integrated housing and supportive services, consistent with local, regional, and state priorities.
The Continuum of Care (CoC) Board initially reviewed funding recommendations on June 26, 2025, and deferred action until its August 27, 2025, meeting. As part of the process, 4 7
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applicants were required to attend the August 27 th meeting with a representative to respond to project-specific questions and to submit a one-page program summary outlining the organization, scope of work, target population, and service area. City of Victorville Homelessness Solutions staff attended the meeting and presented the City’s proposal.
On October 14, 2025, the County notified the City that the CoC approved awarding the City of Victorville funding in the amount of $500,000. These funds are designated to support Wellness Center operations, with a focus on serving seniors, including the provision of rental and utility assistance.
On April 3, 2026, the County provided the City with a final draft agreement for review and execution, which has been reviewed by the City Attorney’s office.
Discussion:
Proposed Grant Uses
The recommended action will support the fiscal sustainability of the Victorville Wellness Center, supportive case management, and assist with homelessness prevention. The awarded $500,000.00 is proposed to be distributed as follows:
Wellness Center Operating Subsidies: $446,400
Rental and Utility Subsidies: $25,000
Case Management: $28,600
With this additional $500,000 in funding, the City will continue to address unsheltered homelessness by leveraging expanded resources and County partnership support, while also supporting operating costs at the Wellness Center.
Grant Requirements
If accepted, the funding period of performance is December 16, 2025, to December 31, 2027. Further, no less than fifty percent (50%) of HHIP funds must be expended by December 31, 2026, and one hundred percent (100%) of HHIP funds by December 31, 2027. As part of the grant requirements, the City will be responsible for reporting on target populations served. These reporting obligations can be met by Homelessness Solutions staff through existing intake procedures and data collection systems. Additionally, the terms of the proposed grant agreement stipulate that the grant funds will be reimbursed to the City for eligible services provided.
Given the City’s established role as an administrator within a functioning Continuum of Care, staff does not anticipate any difficulty expending the funds within the required timeframe. Guided by the Homelessness Solutions Task Force Strategic Action Plan and the Citywide Strategic Plan, the City continues to address homelessness within the community while actively pursuing external funding sources to minimize impacts on the Local Funds.
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Staff Recommendation
In alignment with the City’s Strategic Plan goals and the City’s continued collaboration with San Bernardino County, staff recommends that the Honorable City Council adopt Resolution Nos. 26-045 and 26-046, amending the Fiscal Year 2025-2026 budget and authorizing the City Manager to formally accept the $500,000 in HHIP funding. Staff further recommend authorizing the City Manager to make any necessary amendments to the contract in as deemed necessary by San Bernardino County or the City Attorney.
Staff remains available for any questions or comments you may have.
Prepared By:
William Lamas, Homelessness Solutions Manager
Attachments: A. City Council Resolution No. 26-045 - City/County HHIP Agreement
B. City Council Resolution No. 26-046 - Budget Amendment