May Sonoma County Homeless Coalition Board Meeting

HR1 and Medical Health Coverage Impacts

CMSP Eligibility & Coverage Reductions: The Coalition heard from the County Administrator’s Office that CMSP recently voted to reduce eligibility and service levels to control costs as more individuals fall off Medi-Cal.  No coverage for behavioral health, mental health, or dental. Worst-case scenario estimates up to 11,500 residents would fall off Medi-Cal and could qualify for CMSP.  Fiscal Year Impact: County expected to be charged $700k–$800k for participation; insurance coverage charges likely deferred until year two.  Medi-Cal Work Requirements: Rolling impact starting January 1, 2027 based on individual renewal dates.  “Truly Indigent” Population: Life and limb emergency care remains a county obligation; community clinics have requested $12.8M to meet this requirement.

The Department of Human Services reported on CalFresh & Food Security Work Requirements.  Effective June 1, 2026, there is a discrepancy between CalFresh and Medi-Cal rules creating administrative hurdles and resident confusion. Risk: 4,700 to 5,000 residents subject to new work requirements are at risk of losing benefits. Mitigation: A “Food Convening” event is scheduled for June 19 to coordinate with nonprofits and food banks regarding expected system strain. 

County Mitigation Strategies & Staffing

The Department continued on to indicate that they have submitted a Three-Year Funding Request asking the Board for $23.8M in one-time general funds for short-term mitigation rather than permanent cuts. New Positions (Pending Board Approval): 38 Eligibility Workers to manage doubled workload from semi-annual renewals. 7 Caseworkers to help residents navigate work requirements and volunteer placements. Outreach Efforts: Mobile services vans and social media campaigns are active, though board members expressed concern that many residents remain unaware of changes.

Behavioral Health Services Act (BHSA)

The Sonoma County Homeless Coalition (COC Board) heard a discussion on the Behavioral Health Services Act plan on the transition from MHSA: Part of Prop 1, the Plan attempts to report on the expenditure of $261-286 million each year for the next three years.  one of the new requirements is the expenditure of a $10M bucket for housing and homelessness. Key Updates: Funds target the seriously mentally ill and those with severe substance use disorders. Majority of services and housing referred through Coordinated Entry (CE) and tracked in HMIS. Includes funding for prevention and transitional rents through CalAim. Timeline: The Board of Supervisors will review the integrated plan on June 2, 2026.  The Plan highlighted the inclusion of  ‘lived experience’ gathered from focus groups in Sonoma Valley and West County.  Several Coalition members and the public expressed concern that the Coalition was not fully engaged in the development of the Plan.  The board encouraged attendees to participate in the upcoming Board of Supervisors meeting on June 2nd to address these meaty topics before the June deadline.

Lived Experience Board (LEAP) Updates

Presentations: The LEAP board reported that it was selected to present at the Lived Experience Conference in September, and is applying for the Threads conference. State Level: A LEAP board member was recently appointed to the California ICH Lived Experience Board.  They also reported that high gas prices are significantly impacting the unhoused and low-income residents, hindering their ability to meet new work requirements or maintain safety.

Lead Agency Operational Updates

Nolan Sullivan (DHS Director) and Hunter (Deputy Division Director) are officially onboarding the homeless team.  MRG Report Implementation: Hunter is tasked with operationalizing the MRG strategic plan; full report available to board members.  Lead Agency Evaluation: Susan Price (MRG Consultant) will assist the evaluation subcommittee as an independent evaluator; next meeting scheduled for June 18th.

Proposed Governance Model: Exploring a separate commission or JPA for elected officials to separate high-level governance from technical COC operations.

Departmental Merging: Merging homelessness and behavioral health divisions; relocating staff to the Lakes behavioral health campus. Facility Projects:

Arrowwood Shelter: Behavioral health-based shelter launched March 2025. Mickey Zane: Requires major infrastructure repairs (fire risers, sewer). The Department reported that their largest project is a locked Mental Health Recovery Center, funded by a grant from Prop one for $67M.  It funded four 16-bed facilities; project on life support as costs ballooned to $120M due to seismic/infrastructure requirements.

Legislative and Funding Challenges

SB 43 Impacts: Law change expanding conservatorship population causing significant cost burdens (100% county funded). Prop 1/BHSA Transition: Shift from Mental Health Services Act to Behavioral Health Services Act effective July 1st results in $10M gain for housing but $15M loss for behavioral health services. Mobile Crisis Funding: Systems in Santa Rosa, Petaluma, and Rohnert Park facing budget crashes due to state Medi-Cal cuts. 

NOFA Update

Local NOFA contracts finalized with an average 13% reduction; currently being executed. COC Program FY2026 Renewal Scores: Eight projects evaluated; all scored above 80% of the top project (78/100). Highest Score: CSN Sponsor-Based Rental Assistance (78). Lowest Score: Mill Street Supportive Housing (69.5). Corrective Action Status: St. Vincent de Paul and CSN (Stony Point) remain on corrective action plans but are in 100% compliance. Funding Outlook: 30% cuts expected for permanent housing in the upcoming national NOFO (expected in two days). Reallocation Issues: Buckaloo project reallocation to HMIS software and COTS is currently complicated by congressional automatic renewal mandates.