Title
[Contract] Rio Linda Senior Housing Homekey+ Project Lead Service Provider Professional Services Agreement [Two-Thirds Vote Required]
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FileID
File ID: 2026-01528
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Location
Location: 2809-2821 Rio Linda Boulevard, District 2
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Recommendation
Recommendation: Pass a Motion by two-thirds vote: 1) waiving the requirements of Sacramento City Code section 4.04.020.C and Council Rules of Procedure section 7.E.2.d relating to contracts greater than $1,000,000; and 2) authorizing the City Manager or designee to execute a Professional Services Agreement for supportive services at the Rio Linda Senior Housing Homekey+ Project with TLCS, Inc. dba Hope Cooperative for an initial five-year term and a total not-to-exceed amount of $3,885,000.
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Contact
Contact: Ya-yin Isle, City Housing Manager, (916) 808-1869, yisle@cityofsacramento.org; Axel Magallanes, Housing Analyst, (916) 808-1844, amagallanes@cityofsacramento.org; Economic Development Department
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Professional Services Agreement
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Description/Analysis
IssueDetail
Issue Detail: On May 13, 2025, the Sacramento City Council adopted Resolution No. 2025-0120, authorizing the City to jointly apply for State Homekey+ grant funds for the Rio Linda Senior Housing Project (Project) on behalf of the City of Sacramento and Urban Capital LLC, the developer and co-applicant for a 100-unit permanent supportive housing project on privately owned properties at 2809, 2811, and 2821 Rio Linda Boulevard. Subsequently, on December 2, 2025, the City Council approved Resolution No. 2025-0318 authorizing the City of Sacramento to re-submit a joint application with Urban Capital LLC to the State of California Department of Housing and Community Development (HCD) with an increased award amount of up to $40 million and formally committing $3 million of City HHAP funds to the Project for operational costs.
The Project is intended to serve homeless seniors and senior veterans and proposes using 240 square foot Boss Homes that include living space, bathroom and kitchenette, as a cost-containment strategy and a way to quickly bring housing online. The Project would also include some parking, park space, community garden, community rooms, laundry facilities, storage and private office spaces. Alta California Regional Center, an organization serving individuals with specific developmental disabilities and their families in accessing appropriate services, was brought in as a partner organization into the project for 15 units. Alta Regional will fund and provide supportive services for their clients at risk of or experiencing homelessness.
On July 23, 2026, the Governor announced the City’s conditional Homekey+ award for the Project, totaling $31,866,126 in Homekey+ funds for the Project. This award includes funding for capital costs and operating funds for both the veteran and non-veteran units. The selection of a Lead Service Provider (LSP) who meets the Homekey+ experience requirements was a condition of the award. On June 22, 2026, the City released a Request for Qualifications for Professional Services (RFQ # Q2602145103) seeking a LSP to provide on-site supportive services to the tenants of the Project, in accordance with HCD requirements. The City received five responses, and after the selection committee interviewed the top two providers, unanimously selected TLCS, Inc. dba Hope Cooperative (Hope Cooperative) as the LSP for the Project.
Hope Cooperative has provided behavioral health, housing, and homelessness services in the Sacramento region for more than 45 years, including owning and operating permanent supportive housing projects and Homekey projects. Their Rio Linda team will be supported by Hope Cooperative’s broader organizational infrastructure, including clinical leadership, training, compliance, quality improvement, human resources, fiscal, and administrative staff.
The Project is designed to provide permanent supportive housing, which necessitates comprehensive on-site supportive services to address the needs of its residents, including homeless seniors and senior veterans with suspected behavioral health issues. These services are crucial for the success of the permanent supportive housing model, helping residents transition from homelessness and maintain stable housing. The Homekey+ funding also requires minimum supportive services staff to client ratios. This Professional Services Agreement (PSA) includes funding for 6.2 FTEs, which includes:
• 5.0 FTE Residential Case Managers - work on-site with tenants on assessments, service planning, benefits and resource connections, health and behavioral health coordination, crisis response, housing stabilization, transitions of care, documentation, and regular resident contact.
• 1.0 FTE Resident Services Coordinator/Manager - handle duties such as daily operations, resident meetings, wellness and social activities, financial education, life-skills training and coordinate with the residential case managers.
• 0.2 FTE Program Manager - offsite position responsible for supervision, contract compliance, quality review, reporting, staff support and coordination with City and project partners.
In addition to other operational costs, the PSA budget includes $63,000 for client support, including costs to directly support residents including transportation, household supplies, activities/recreation, medications, sustenance/food, and other miscellaneous client needs. The estimated annual program cost is $731,715. Permanent supportive housing projects provide long-term housing and require a stable and consistent case management presence. As such, this PSA is for an initial five-year period, with Hope Cooperative anticipated to be the eventual long-term owner/operator of the Project. With a 3% cost adjustment applied each year, staff is recommending a total NTE contract amount of $3,885,000 for this five-year PSA.
Construction of the Project is anticipated to begin in the first quarter of 2027. While this PSA with Hope Cooperative will not begin until July 1, 2027, HCD is requiring the City contract with the LSP for the Project as a condition of the Homekey+ funding. Hope Cooperative will have an opportunity to coordinate with the developer during the design phase of the project and will also coordinate with the City’s Department of Community Response and the Veteran’s Administration on referrals into this project leading up to the construction completion and opening of the Project.
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PolicyConsiderations
Policy Considerations: City Council approval is required for agreements of $250,000 or more per City Code 3.56.090. In addition, the Sacramento City Code Section 4.04.020 and the City Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a two-thirds vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to City Council action. This item was published for 10-day review on October 8, 2026, in compliance with the City Code, but due to changes in the Council schedule the report now seeks to waive this requirement via two-thirds vote.
This Project advances the Council-adopted priorities of Economic Development and Homelessness identified at the September 30, 2025 Priority and Goal Setting Workshop and adopted by City Council on November 18, 2025. Specifically, this Project implements the following Strategic Initiatives in the City of Sacramento One City, One Future Priorities Strategic Workplan:
• Economic Development, Neighborhood and Commercial Development: Strategic Initiative 7: Activate Vacant and Underutilized Public and Private Properties
• Homelessness, Long-Term Housing Stability, Strategic Initiative 24: Compete for Homekey+ Permanent Supportive Housing Opportunities
In addition, this supportive services contract aligns with the City’s General Plan, specifically Policy H-36: Support Affordable Housing Development in the City of Sacramento Housing Element. Additionally, financing permanent supportive housing projects is consistent with the Sacramento Regionally Coordinated Homelessness Action Plan (RCHAP), adopted in March 2024 and updated in August 2025. The Project supports Solution 6 - Permanent Supportive Housing, which seeks to expand housing opportunities and capacity for people experiencing homelessness.
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EconomicImpacts
Economic Impacts: Not applicable.
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EnvironmentalConsiderations
Environmental Considerations: This professional services agreement for supportive services is an administrative action related to the operation of the housing project and does not involve physical changes to the environment. Therefore, it is not considered a project under CEQA Guidelines section 15378(b)(4) and is exempt from CEQA review under CEQA Guidelines section 15060(c)(3).
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: TLCS, Inc. dba Hope Cooperative has been selected as the LSP through a competitive RFQ process. As the LSP, they will be responsible for all on-site supportive services for the Project. This approval of this contract is required to meet the conditions of the Homekey+ funding award from HCD and will provide essential on-site supportive services for five years for the Project.
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FinancialConsiderations
Financial Considerations: The total not-to-exceed amount for the professional services agreement with TLCS, Inc. dba Hope Cooperative is $3,885,000 for an initial five-year term. The supportive services for this project are funded through the Homekey+ Program, which awarded a total of $11,116,126 for Operating Award and Veteran Units Additional Operating Award for 15 years. The City has also committed $3 million of Homeless Housing, Assistance and Prevention (HHAP) 4 and 5 funding to fund the supportive services and operations of the Project.
On September 29, 2026, the City Council adopted a Resolution accepting $31.8 million of Homekey+ funding and established the Rio Linda Homekey+ Project (G02610620). This Professional Services Agreement for $3,885,000 for supportive services will be covered by these Homekey+ funds for operating costs (Operating Grants, Fund 2702).
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LocalBusinessEnterprise
Local Business Enterprise (LBE): TLCS, Inc. dba Hope Cooperative is an LBE.
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