San Bernardino approves Helping Hearts to run SB Hope navigation center; council directs staff to seek regional partners

San Bernardino officials on May 21 approved a professional services agreement with Helping Hearts Hulin LLC to operate the city’s planned SB Hope navigation campus, a modular, low‑barrier site designed to provide interim housing, recuperative care and on‑site supportive services for people experiencing homelessness.

The council voted unanimously to award the contract and to direct staff to pursue regional partners and county funding to reduce San Bernardino’s share of ongoing operating costs. Councilmember Yuri Ortiz made the motion; Councilmember Ted Sanchez seconded.

Staff said the campus will be constructed as a single project but operated in two phases: an initial 100‑bed phase followed by a second 100‑bed expansion. Interim public‑works and homelessness staff briefed the council on the construction timeline and operational model. Public‑works director Lynn Merrill said modular components and off‑site fabrication should shorten build time, but site preparation and utility work remain on the critical path. Merrill said the RFP for general construction is targeted for release August 4, 2025, with award in mid‑September and construction expected to start in November 2025; staff estimated substantial completion and ability to receive residents in late 2026.

Staff recommended a contract not to exceed $2,395,075 for phase 1 and a separate $300,000 annual contribution for phase 2 operations. Cassandra (city staff) described a startup package for year one that included one‑time equipment and set‑up costs; she said “the city would contribute $300,000 a year” in the base scenario. Staff also presented a contingency analysis: if federal Medi‑Cal/CalAIM reimbursements were cut substantially, city costs could rise — staff estimated a worst‑case municipal obligation of roughly $1.6 million annually for a 100‑bed phase and about $3.2 million annually at full 200‑bed capacity, absent other funding sources.

Helping Hearts representatives told the council the organization has local experience operating low‑barrier shelters and recuperative‑care programs and is familiar with CalAIM billing and Medi‑Cal invoicing. CEO Inez Cross said Helping Hearts maintains “well established relationships” with managed‑care plans active in the region and has operated multi‑service campuses that combine shelter, case management and supportive services.

Under the agreement staff described, Helping Hearts would provide case management, housing navigation, recuperative care (including short‑term post‑hospitalization stays), on‑site mental‑health and substance‑use counseling, vocational services, and security. The facility is planned to be pet‑friendly for cats and dogs and will include kitchen capacity to provide three meals per day.

Staff proposed a five‑year base contract with automatic extensions of up to five additional one‑year terms; either party could decline renewal with 90 days’ written notice. Councilmembers pressed staff on budget assumptions and requested that staff pursue county and neighboring‑city funding partnerships. Ortiz specifically asked staff to begin outreach to other Inland Empire jurisdictions and the county for cost‑sharing; staff said it would do so and return to council with any formal proposals.

The council’s action authorizes staff to complete and execute the operator agreement and to appropriate initial startup and contingency funding tied to the contract. Staff said the city will continue pursuing state, federal and private grants to offset operating costs and that, in the event of major state or federal Medi‑Cal policy changes, staff would return to council with amended financial figures and recommendations.

Construction, procurement and operational steps remain: architectural and engineering documents are being finalized for state review (required for modular construction), staff plans to release a general‑contractor RFP in August, and site demolition and preparation are expected in coming weeks. The council asked staff to report back at key milestones and to prioritize any opportunities to accelerate delivery through legitimate incentives to contractors.