Committee approves DPH request to apply for Proposition 1 bond funds for behavioral health capital projects

The Budget and Finance Committee on Oct. 1 voted 2-0 to forward a resolution authorizing the Department of Public Health to apply to the California Department of Health Care Services for Bond Behavioral Health Continuum Infrastructure Program (Bond B CHIP) round 2 grants under the Behavioral Health Infrastructure Bond Act of 2024 (Proposition 1).

Kelly Kirkpatrick, director of new beds and facilities at the San Francisco Department of Public Health, told the committee round 2 allocates about $800 million statewide and is focused on unmet needs; award notifications are expected in 2026 and awards carry no new operating funding — they are one‑time capital grants that require state eligibility, site readiness and Medi‑Cal billable services. DPH plans to apply for approximately $26 million in round 2 for projects including $14 million for adult residential substance use disorder treatment beds on Treasure Island and $12 million to help build out a 24/7 recovery and connection center first-floor 24/7 access point linked to the recently purchased 1660 Mission building.

Kirkpatrick also said DPH will reapply jointly with UCSF for a large acute treatment bed expansion that previously sought state funds; the department indicated it may again request a much larger award in partnership with UCSF, while separately applying for the two $26 million requests.

Supervisor Matt Dorsey asked clarifying questions about what counts as new capacity under Proposition 1; DPH staff said reopening a previously closed facility that is not currently online can meet the requirement because it adds capacity back into the system. Dorsey asked to be added as a cosponsor of the application outreach.

The committee forwarded the authorization to apply and the item will return to the Board of Supervisors for appropriation and grant‑agreement approvals if DPH is awarded funds. Public comment was not submitted for this item.