San Bernardino approves 200‑bed modular "SB Hope" navigation center; Helping Hearts named operator

San Bernardino city council approved a contract Wednesday to operate a planned 200‑bed modular low‑barrier navigation center called SB Hope, awarding the lead‑operator role to Helping Hearts Hulin and authorizing first‑year startup and contingency funding.

City staff and Helping Hearts representatives told the council the campus will open in phases — 100 beds in phase 1, then a second 100‑bed phase — and will combine shelter, recuperative care, case management and housing navigation. "This campus is going to enable us to begin to restore and stabilize the lives of our unhoused residents," a city staff member said during the presentation.

Why it matters: Council members and staff said SB Hope is intended to provide interim housing, on‑site behavioral‑health and substance‑use services, and housing navigation at lower net cost to the city by using Medi‑Cal CalAIM reimbursements. Staff estimated the city’s annual contribution could be as low as $300,000 under current CalAIM rules but warned that significant federal or Medi‑Cal changes could raise the city’s costs substantially. The council voted unanimously to award the contract and appropriate initial funds.

What the council approved: Staff recommended and the council authorized a contract with Helping Hearts Hulin (operating as Helping Hearts) as the lead operator and approved an appropriation for first‑year startup, equipment and contingency. Staff described the year‑one funding need as approximately $1.64 million in start‑up costs plus the city’s planned $300,000 annual contribution; the staff recommendation included extra contingency to bring the total appropriation to about $2.395 million for year one.

Operational and fiscal details: Helping Hearts said it operates similar low‑barrier facilities in the Inland Empire and has experience with CalAIM and Medi‑Cal billing. Staff explained that CalAIM reimbursements — the state’s Medi‑Cal reform — are expected to offset a large portion of operating costs, and presented a worst‑case contingency should CalAIM funding be reduced. Under staff estimates, the city contribution could rise to roughly $1.6 million for a 100‑bed operation in a worst‑case funding scenario; at full 200‑bed scale that worst‑case cost would increase accordingly.

Timeline and construction approach: Public Works Director Lynn Merrill said the navigation center will be modular construction and described the schedule: architectural submission to state review by June 3, 2025; release of the general‑contractor RFP on Aug. 4; a mandatory job walk on Aug. 19; bid opening Sept. 3; contract award targeted Sept. 17; notice to proceed targeted Oct. 15; and construction to begin in November with an estimated completion and opening window around fall 2026. Merrill noted site demolition and unknown subsurface conditions could create change orders and that staff will include contingencies.

Council discussion and conditions: Council members pressed staff on regional cost‑sharing and interim shelter access while construction continues. Councilmember Ortiz successfully added direction for staff to begin outreach to potential regional partners — cities and the county — to share operations and costs. Councilmembers emphasized prioritizing San Bernardino residents and vetting referrals through the city’s outreach and “peace” teams.

Contract and oversight: The approved operator agreement is a five‑year contract with up to five successive one‑year extensions; either party may give 90 days' notice not to renew. Staff said they will return to council if federal/state changes require an amended funding approach.

What’s next: Staff will continue design work, refine budget projections, begin regional partnership outreach at council direction and return with more detailed cost and funding plans as federal/state programs evolve.