title
RESOLUTION AUTHORIZING AN APPLICATION TO AND PARTICIPATION IN THE BEHAVIORAL HEALTH CONTINUUM INFRASTRUCTURE PROGRAM ("BHCIP")
recommended action
RECOMMENDATION
It is recommended that the City Council of the City of Stockton adopt a resolution:
1. Authorizing an application to and participation in the Behavioral Health Continuum Infrastructure Program ("BHCIP");
2. Authorizing the Teen Impact Center to be leveraged as match as part of the application for BHCIP funding; and
3. Authorizing the City Manager, or designee, to take whatever actions are deemed necessary and appropriate to carry out the purpose and intent of this resolution.
body
Summary
On May 30, 2025, the State of California released the Request for Applications for the Behavioral Health Continuum Infrastructure Program (BHCIP) Round 2: Unmet Needs funding opportunity. Through this process, over $800 million will be made available to construct, acquire, and rehabilitate real estate assets to expand the continuum of behavioral health treatment and service resources for Californians. Under Round 2: Unmet Needs, the state will focus on filling the remaining gaps in the statewide behavioral health continuum and prioritize mental health community residential beds and crisis settings.
City staff have identified an opportunity to pursue BHCIP funding for improvements to the Teen Impact Center site with the purpose of converting it to transition-aged youth housing and a peer respite center. As the fee-interest owner of the Teen Center property, the City is able to contribute in-kind property equity to meet the 10% match requirement of the grant application. According to the City's insurable property list, the approximate value of the Teen Center real property is $6,468,454.
As a requirement for applying, all applicants and co-applicants must receive approval from their governing board to participate in the application process.
Staff recommends Council adopt a resolution authorizing the City to participate as a co-applicant under the BHCIP Round 2: Unmet Needs process and to authorize the use of the in-kind property equity of the Teen Impact Center to meet the program match requirement.
DISCUSSION
Background
In 2024, California voters approved Proposition 1, providing up to $6.38 billion in bonds to fund housing for veterans and homeless individuals. Subsequently, the State of California created the Behavioral Health Continuum Infrastructure Program (BHCIP), with Round 1 awards recently being released, totaling approximately $3.3 billion. The State has issued a BHCIP Round 2: Unmet Needs Request for Applications, with applications due October 28, 2025.
In June 2025, staff from the Economic Development Department (EDD) released a Request for Qualifications (RFQ) to identify viable project concepts and potential partner organizations on one or more collaborative applications to the Request for Applications under the BHCIP Round 2: Unmet Needs program. Through this process, the City received responses from Friends Outside, Community Medical Centers, Main Street Youth & Family Services (formerly Parents by Choice), and Service First of Northern California.
Upon reviewing the submittals under the RFQ, it was determined that none of the prospective projects were feasible for the City to participate in due to the 10% match requirements and the lack of available funding for the City to contribute toward the match.
Subsequent to the closure of the RFQ process, City staff were contacted by Hollywood Cares regarding the potential pursuit of BHCIP Round 2 funding to rehabilitate the Teen Impact Center. Hollywood Cares has identified Main Street Youth & Family Services as a partner entity to provide services at the prospective facility, thereby creating a nexus to the City's RFQ process. The Teen Center is currently vacant and has been since the last operator agreement expired in 2021. Attempts have been made to rehabilitate the facility, with the City issuing a Request for Interest (RFI) in November 2023. By mid-2024, negotiations with an operator ended as the building was found to need over $4.2 million worth of infrastructural and systems improvements (assessment in 2017, using then current construction estimates). With no funding of the scale needed, the facility has remained unused. Given the operational obstacles that led to facility closure, the idea of re-programming the facility for a behavioral health benefit and potentially unlocking state funding for the rehabilitation is intriguing.
With applications due on October 28, 2025, staff are seeking Council's approval to participate in the application process and contribute the in-kind property equity to meet the match requirements.
Present Situation
The Teen Impact Center has been vacant and underutilized since mid-2021. As the fee-interest owner of the Teen Impact Center, the City can contribute the in-kind property equity of the Center as part of the BHCIP application process - estimated to be approximately $6,468,454. Participating in the BHCIP Round 2: Unmet Needs application process will provide an opportunity to re-envision the Teen Impact Center and transform it into a productive community asset serving vulnerable populations.
If awarded funding, BHCIP requires that a 30-year deed restriction be placed on the property's title, enabling the provision of behavioral health services and building use restrictions. In addition, a lease of not less than 30 years is required if the operation of the facility is undertaken by an entity other than the City of Stockton.
The Surplus Land Act requires local agencies to notify affordable housing developers when selling or leasing (greater than 15 years) surplus land. If the BHCIP award necessitates a lease greater than 15 years, the City will undergo the appropriate Surplus Land Act approvals and notifications prior to disposition. Both the surplus declaration and any prospective lease greater than 15 years would require future City Council approval.
If the BHCIP application is not successful, there are no remaining obligations of the City. If the application is successful, staff will bring future items to the Council for review and approval as necessary in the programs established process and to carry out the intent of the partnership regarding the Teen Impact Center facility.
FINANCIAL SUMMARY
There is no financial impact to the City's General Fund or any other unrestricted fund as a result of this action.