​​Bond BHCIP Rounds 1 and 2 FAQ​​

No. Prospective applicants must register and complete a PAC for each proposed project with Advocates for Human Potential, Inc. (AHP), the BHCIP administrative entity. PACs will provide an opportunity to discuss the proposed project(s) and how project addresses local/regional behavioral health needs, match requirements and other related project considerations and bond funding requirements. AHP will provide PACs in coordination with experts in real estate, finance, Tribal relations, and behavioral health, as needed. Please refer to the Bond BHCIP Round 2 RFA for critical PAC deadlines, eligibility considerations, all requirements. 
 

No. Applicants interested in applying for Bond BHCIP Round 2: Unmet Needs competitive funding do not need to be prior recipients of a BHCIP funding award to be eligible to apply. Recipients of awards in prior BHCIP rounds, including Bond BHCIP Round 1: Launch Ready, and interested parties that either did not apply for or did not receive a BHCIP award, are eligible to apply for the current funding opportunity.                                   
 

DHCS and AHP, the BHCIP administrative entity, are not able to provide tax or legal advice to Bond BHCIP Round 2: Unmet Needs applicants. Applicants are encouraged to solicit the advice of a tax professional or attorney, as needed.     

Please submit all questions related to applications and the PAC process to the Submit a ticket : BHCIP R3-5 Access Request Form. Please note, based on the volume of questions received, DHCS and AHP cannot guarantee responses to questions received after 5:00 p.m. on October 20, 2025.
 

Letters of support are an important part of the application process. All applicants are expected to share relevant letters of support from local stakeholders, internal boards of directors, Tribal councils or advisory boards, and professional and community partners. City, nonprofit, and for-profit organizations are required to provide a letter from their county Behavioral Health (BH) agency acknowledging the project proposal and how the project supports the continuum of care. In instances where applicants document their reasonable attempts to obtain the required BH agency letter, which were unsuccessful, DHCS will attempt to contact the BH agency administrator for follow-up. 
 

Project proposals can be modified at any time prior to application submission. However, once an application has been submitted, applicants will not be able to make modifications to their proposed project or application. Additionally, upon conditional award, applicants requesting project amendments that differ from application information will forfeit their conditional award.                   
 

No. Costs associated with completing a Bond BHCIP Round 2 application are not an allowable budget line item. Additionally, reimbursement of BHCIP costs incurred prior to receipt of an offer of conditional award are not allowed. It is possible for allowable sunk costs to be proposed as a match source. Until BHCIP funding awards are final, all costs incurred are at the risk of the applicant.                   
 

Funded facilities may not be re-purposed for non-BHCIP uses during the construction phase or 30-year encumbrance. Any requests for BHCIP project changes at any point during the life of the project require DHCS review/approval. Failure to meet the requirements outlined in the Program Funding Agreement/Facility Access Agreement/Declaration of Restrictions, including repurposing the facility, would be considered a breach of contract. Any remedy pursuant to a breach of contract is fact-dependent and will be determined on a case-by-case basis.           
 

Per the applicable Request for Application, one of the State’s BHCIP priorities includes the expectation to leverage county and Medi-Cal investments to support ongoing sustainability. Additionally, awarded projects must make a commitment to serve Medi-Cal members. In some instances, eligible Medi-Cal members may receive services covered by funding sources other than Medi-Cal, and applicants should describe how this scenario would be applicable to the proposed project. The Medi-Cal members served percentages identified in the application are an important component in application review. The Medi-Cal percentage identified in applications that receive an offer of conditional award will be the defined percentage expected across the life of the project. This identified percentage will continue to be an outcome measure monitored by DHCS. Requests to change Medi-Cal percentages post-award will be declined.           
 

As referenced in Bond BHCIP Round 2: Unmet Needs Request for Applications section 2.2, a regional model is described as counties partnering to create established networks of organized systems of car           
 

All Bond BHCIP Round 2 (BBR2): Unmet Needs applications detailing project proposals are due by 5p.m. on October 28, 2025. To remain informed on relevant information relating to BBR2 and other BHCIP information, please visit the Behavioral Health Infrastructure Bond Act of 2024/BHCIP Webpage. From this webpage, please sign up for the BHCIP Listserv to receive timely information regarding Bond BHCIP announcements and updates.           
 

The passage of Proposition 1 includes the Behavioral Health Services Act (Senate Bill 326) and the Behavioral Health Infrastructure Bond Act (BHIBA) of 2024 (Assembly Bill 531). The Department of Health Care Services Behavioral Health Continuum Infrastructure Program (BHCIP) portion of the bond is $4.393 billion to construct, acquire, and rehabilitate real estate assets or invest in needed infrastructure to expand the continuum of behavioral health treatment resources in residential and outpatient settings. The Department of Housing and Community Development (HCD) will oversee the BHIBA available funding for housing-related projects under the BHIBA portion of Proposition 1 – up to $2 billion in total. Additionally, under the Behavioral Health Services Act (BHSA), there is housing opportunities. More information can be found on the DHCS website: BHSA Opportunities for Housing.           
 

DHCS held a webinar series in November 2024 that guides prospective applicants through the licensing and certification application process based on facility types. Recordings of all 7 webinars are accessible on the BHCIP Resources page.           
 

No. DHCS will administer up to $4.4 billion in BHCIP competitive grants to expand behavioral health treatment settings. The California Department of Housing and Community Development (HCD) will administer up to $2 billion specific for permanent supportive housing. Please refer to HCD website for more information and updates.           
 

As stated in part in section 2.1 of the Request for Applications (RFA), “Awarded applicants that offer Medi-Cal reimbursable behavioral health services will be expected to have a contract in place with their county to ensure the provision of funded Medi-Cal services once the awarded BHCIP facility’s expansion or construction is complete and required licenses/certifications are secured. BHCIP funded facilities providing Medi-Cal reimbursable services will need to specify on their application what percent of the services they provide will be Medi-Cal funded. Additionally, if the BHCIP funded facility will also operate utilizing alternate funding sources, the application must specify the source of the alternate funding and the percentage of services that will be covered by the alternate funding. Community wellness centers and youth behavioral health prevention centers, which are only eligible facility types for tribal entities, do not provide Medi-Cal reimbursable behavioral health treatment services and thus are not required to have a contract to provide Medi-Cal behavioral health services; however, they must provide services to Medi-Cal beneficiaries a​nd describe how their services will be sustainably funded.” A letter of support from the county behavioral health agency supporting the project and describing how the entity type would work into the county’s continuum of behavioral health care would be a beneficial addition to the application.           
 

For purposes of the Bond BHCIP Round 2 RFA, Tribe and Tribal entity is defined as a “federally recognized Indian tribe, Tribal organization, or urban Indian organization, as defined in Section 1603 of Title 25 of the United States Code” (see RFA section 2.1).           

Tribal lands can satisfy the required match source, provided the BHCIP project is located on the identified land proposed as a match source. For more information about the match, see RFA section 2.7.            

Other forms of site control proof for Tribes and Tribal entities include a deed or title showing the Tribe or Tribal entity owns the land, a ground lease or long-term agreement, which is an agreement between the landowner and the applicant, or a resolution of letter from the Tribal council which authorizes use of a site for a specific project.            

Tribal entities with projects that are not on Tribal land have the same letter of support requirements as counties/cities. In addition, they have the option to include one or more letters of support from their Tribal council, chairperson, or Tribal authorizing entity showing support for the proposed project. Applicants whose projects are on Tribal land do not need to include a letter of support from the county behavioral health director, but are encouraged to submit one along with their application as an indication of community support. Applicants whose proposed projects will be on non-Tribal land are required to submit a letter of support from the county behavioral health director.            

Yes. Welfare and Institutions Code requires all BHCIP awarded entities to operate services in the financed facility for the intended purpose for a minimum of 30 years. DHCS will require all awarded entities to execute Program Funding Agreements and relevant security instruments to ensure compliance with this required provision.            

DHCS fully acknowledges Tribal sovereignty and Tribes’ right to self-govern. Tribal applicants with proposed projects on Tribal lands will not be required to attest that the project will meet federal, state, and local laws, as noted in RFA section 4.1. In the context of Bond BHCIP grant funding, DHCS asks that applicants consent to agree to referenced laws and accept adapted Tribal versions.            

Sponsors must provide projected funding needs electronically on a monthly basis by submitting a completed draw projection survey via the online portal. Funding may be contingent upon the provision of data submitted and consistency in timely reporting.            

Based on the process for identifying and receiving bond funds from the State Treasurer’s Office, submission of a late draw projection survey may result in delayed distribution of funding for a BHCIP Sponsor. In such instances where this occurs, Sponsors will be responsible for covering incurred project costs that cannot be deferred, until the next submitted draw projection. Please note that Bond BHCIP funds cannot be used to pay interest on loans that may be in use for project purposes.       

In general, Sponsors will receive the associated funds approximately 45 days after DHCS approval of a draw request. DHCS will communicate with Sponsors in the event of any unforeseen delays, or if there are any changes to the payment process. Funds are contingent on the availability of Bond Funding.     

Sponsors can incur costs from the date of the conditional award letter and must submit a draw request for those expenditures no more than 45 days from the date the expense was incurred. This is a critical step to ensure the accuracy of fund tracking. DHCS nor AHP will be responsible for incurred costs that are not submitted for draw requests within the 45 day timeframe. Sponsors will need to provide supporting documentation for all such costs.            

In general, construction costs that are not essential for the delivery of behavioral health services in the BHCIP funded facility are not permitted. Examples include facility upgrades such as electronic vehicle charging stations, swimming pools, and commercial-grade multi-purpose sports courts. For additional information, refer to Attachment B: Allowable and Non-Allowable Equipment.                        

Applicants must ensure that records are retained for a minimum of 35 years from the date of expenditure, in compliance with the California Department of Finance (DOF) Office of State Audits and Evaluations (OSAE) Bond Accountability and Audits Guide (see Appendix V – page 63: Bond_Accountability_and_Audits.pdf). Please note that the list of documents is the minimum required. DHCS retains the right to require Sponsors to retain additional documents related to Bond BHCIP-funded projects.            

All applicants and co-applicants must be named in the grant application, and the details of the partnership, the roles and responsibilities, and the description and nature of the relationship must be clearly outlined. Applicants must be eligible entity types (county, city, Tribal entity, nonprofit organization, or for-profit organization) whose projects reflect the State priorities and align with the eligible facility types listed in the Request for Applications (RFA).            

Applicants should consult with their legal counsel and applicable local agencies regarding the California Welfare and Institutions Code section 5960.3(a)(b)(c). DHCS is not responsible for determining whether an awardee qualifies for CEQA exemption. As per the Bond BHCIP Program Funding Agreement (PFA), applicants will be responsible for filing and providing copies of all appropriate building permits and Notice of Exemption for the Project, pursuant to the CEQA Guidelines section 15062            

DHCS will not accept any modifications, negotiations, or redlining to the Bond BHCIP PFA. Relevant Program Funding Agreements (PFA) and subsequent documents to ensure the required 30-year use restriction must be executed by project applicants and co-applicants, for the BHCIP funding award to become final, and to be eligible to receive any BHCIP funding for allowable project costs.            

Bond BHCIP Round 2: Unmet Needs conditional awardees and any subsequent entities named as co-applicants together bear certain fiscal responsibilities for project success and the required 30-year commitment for the BHCIP-financed property. Authorized representatives of both the conditional awardee and any co-applicant entities are required to sign and execute the Bond BHCIP PFA. In instances where parties who are required to sign the PFA refuse to do so, the applicant can decline the funding award, or DHCS may rescind an award on this basis.                        

DHCS conditionally awards projects based on the application information submitted. Requests to modify components of the project as submitted in the application are not acceptable and will result in DHCS rescinding the offer of conditional award. Additionally, any significant scope change requests post-award are not permitted. Projects that proceed with incurring costs outside the scope of their approved project are at risk of forfeiting reimbursement of Bond BHCIP funding for incurred costs.