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Commission approves $20 million peer‑respite pilot to expand peer‑run crisis supports

Mental Health Services Oversight and Accountability Commission · January 26, 2026
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Summary

The commission approved a $20 million two‑phase plan under the Mental Health Wellness Act to pilot and scale peer‑run respites statewide, pairing peer‑run organizations with counties and launching a learning collaborative and technical assistance.

The Mental Health Services Oversight and Accountability Commission voted Jan. 22 to move forward with a $20 million plan to support peer‑run respites — home‑style, 24/7 peer‑staffed places where people in crisis can rest and access peer support — funded through the Mental Health Wellness Act (MHWA). The outline divides the funding into two phases: $10 million for an initial pilot and learning collaborative and $10 million later for tailored funding to expand new and existing respites.

Courtney Ackerman, research scientist for the commission, summarized site visits to operating peer respites across the state and said homes staffed entirely by peers can reduce hospitalization and link guests to housing and other services. "A peer respite is a temporary residence offering peer support services provided 24‑seven in a home‑like setting that is staffed and operated entirely by peers," she said.

Staff emphasized barriers to scale: lack of sustainable long‑term funding, expensive real estate for home‑style settings, and limited capacity among some peer‑run organizations to bill Medi‑Cal or otherwise secure long‑term reimbursement. Commissioners asked whether peer respites can braid county, Medi‑Cal community‑support, commercial payer and philanthropy dollars and whether the evaluation plan would capture housing linkages, service trajectories and outcomes for guests.

The approved two‑phase approach requires partnerships between county behavioral‑health departments and peer‑run organizations for pilot awards, provides technical assistance in business planning and billing, and incorporates an evaluator to measure outcomes. Staff said the RFA for pilot county/PRO partnerships is expected in March, with a summer RFP for a TA and evaluation provider; phase‑1 funds must be encumbered by June 30, 2027.

Public commenters and several commissioners urged that peer‑run programs receive sustained investments and cautioned that Medi‑Cal billing alone will not guarantee sustainability. Staff said the TA and learning collaborative will help build billing capacity and linkages to housing and county services.

Next steps: Commission staff will release the pilot RFA and a separate RFP for TA/evaluation services and report back on evaluation design and early performance metrics.