Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Louise F. Rogers, Chief, San Mateo County Health
Jei Africa, Director, Behavioral Health, and Recovery Services
Subject: Agreement with Hopkins Manor Corporation for Expansion of Residential Care Facility Beds in San Mateo County
RECOMMENDATION:
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Adopt a resolution approving agreement with the co-owners of the real property located at 1235 Hopkins Avenue, Redwood City, California to secure a 20-year deed restriction encumbering the real property for use as a board and care facility for a term of January 1, 2025 through December 31, 2045, in exchange for the County funding improvements to the property that will add 46 beds for use by County clients at a County cost not to exceed $1,720,084, and authorizing and directing the Chief of San Mateo County Health, or designee(s), in consultation with the County Attorney’s Office, to negotiate and enter into the deed restriction and any and all other agreements necessary and appropriate to accomplish the purposes of the deed restriction and agreement with the co-owners.
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BACKGROUND:
The County has historically relied on Adult Residential Facilities (“ARF”) and Residential Care Facilities for the Elderly (“RCFE”) to serve dependent adults who are subject to either probate or Lanterman-Petris-Short Act conservatorships. However, many of these facilities in San Mateo County are closing, primarily due to the high costs of operating such a business in the Bay Area.
According to a 2019 report, the number of licensed residential care beds in the Bay Area declined from 8,879 in 2006 to 6,044 in 2019. Shortly thereafter, the San Mateo County Behavioral Health Commission studied the issue of declining beds and included in their recommendations that Behavioral Health and Recovery Services (“BHRS”) establish measures to preserve existing facilities in San Mateo County and to encourage new facilities through incentives and other strategies.
The number of facilities that are willing to care for individuals with behavioral health issues is also declining. In 2016, there were fourteen contracted ARFs and nine RCFEs in San Mateo County that were willing to care for adults with behavioral health issues. In 2022, there were only five RCFEs accepting such clients and today there are only four. The County has only 65 contracted RCFE beds in all of San Mateo County.
In 2023, there were 26 County clients referred for placement, but only six open beds among the existing facilities. As a result, referred clients are held at higher levels of care than necessary or in homeless shelters until a bed opens. If a county client needs sooner placement, they are referred to facilities outside San Mateo County. Indeed, there are currently 189 County clients placed in an ARF or RCFE outside San Mateo County and, of those 189 clients, 29 are over the age of 60.
DISCUSSION:
Staff is proposing to expand RCFE beds for County conservatorship clients at Hopkins Manor, an RCFE located at 1235 Hopkins Avenue in Redwood City, California (the “Property”), co-owned by Wendy Wong and Olive Manalastas (“Co-Owners”). The County currently contracts with Hopkins Manor Corporation for placement of County conservatorship clients at Hopkins Manor, located in a residential neighborhood near downtown Redwood City.
The proposed expansion of Hopkins Manor includes renovation of the third floor to accommodate 46 additional beds (“Expansion Project”), all of which will serve County clients on Supplemental Security Income/State Supplementary Payment or Cash Assistance Program for Immigrants who are at risk of or experiencing homelessness and who are in need of assistance and monitoring in their daily living activities (“Target Population”). The Expansion Project serves a public purpose, as it will expand the availability of critical RCFE beds in San Mateo County for some of the County’s most vulnerable conservatorship clients.
The total cost of the Expansion Project is $2,692,906, but where improvements also benefit the remaining residents at Hopkins Manor who are not part of the Target Population, the costs will be split using an allocation plan developed in coordination with the Department of Public Works that results in the Co-Owners contributing $972,822 and the balance of $1,720,084 paid by the County.
Staff has negotiated an agreement with Co-Owners regarding the County’s share of costs for the Expansion Project, in an amount not to exceed $1,720,084, (the “Agreement”), a copy of which signed by the Co-Owners is included as an attachment to this Memorandum and incorporated by this reference. Staff requests authority for the Chief of San Mateo County Health, or designee(s), in consultation with the County Attorney’s Office, to negotiate and enter into any and all additional documents necessary and appropriate to accomplish the purposes of the Expansion Project.
In exchange for the County’s contribution toward the Expansion Project, Co-Owners would agree to a 20-year deed restriction, for a term of January 1, 2025, through December 31, 2045, encumbering the Property for use as a board and care facility (the “Deed Restriction”). The Property is currently encumbered by an existing deed of trust in the principal amount of $4,488,000. The County has notified the lender of the potential Deed Restriction and has requested that the deed of trust be subordinated in favor of the Deed Restriction.
Staff further requests authority for the Chief of San Mateo County Health, or designee(s), in consultation with the County Attorney’s Office, to negotiate and enter into the Deed Restriction as well as any and all additional documents necessary and appropriate to accomplish the purposes of the Deed Restriction, including a potential subordination agreement with the holder of the existing deed of trust encumbering the Property.
The resolution contains the County’s standard provision allowing amendment of the County’s fiscal obligations under the Agreement by a maximum of $25,000 (in aggregate).
County Attorney has reviewed and approved the resolution as to form.
It is anticipated that 100% of the beds will be occupied by the Target Population within one year of when the site improvements are completed.
PERFORMANCE MEASURE:
|
Measure |
FY 2024-25 Estimated |
FY 2025-26 Projected |
|
Percentage of beds occupied by target population |
50% 23 Individuals |
100% 46 Individuals |
EQUITY IMPACT:
This Expansion Project will positively impact a critically underserved community of older adult County conservatorship clients (25% LatinX, 25% Asian/Pacific Islander, 5% Black, 3% Mixed Race) in need of residential placement. RCFEs, such as Hopkins Manor, are a vital resource for housing such individuals, and the Expansion Project will provide an additional 46 beds in San Mateo County to care for these vulnerable County clients.
FISCAL IMPACT:
The term of the agreement is January 1, 2025, through December 31, 2045. The amount of the agreement is not to exceed $1,720,084 for the 240-month term. The County’s share of costs for the Expansion Project is $1,720,084, $860,042 (50%) of which will be funded by Realignment funds and $860,042 (50%) of which will be funded by Mental Health Services Act funds. There is no Net County Cost.