$319,000 more to New Life for a new recovery residence for adults

In plain English

The county would amend its existing pay-per-service contract with New Life Community Services, adding $319,000 for a new total of $5,286,509 in Fiscal Year 2026-27. The extra money funds a new "Recovery Residence" — sober housing where residents must also attend outpatient substance use treatment from a county Drug Medi-Cal provider. Beds would serve adults with substance use disorders who have low-level criminal charges and are referred through the county's RENEWPath program. A yes vote approves the amendment and lets the Health Services Agency Director or a designee sign it.

It adds housing tied to treatment for adults in Santa Cruz County who have substance use disorders, are unsheltered or unstably housed, and have low-level justice involvement — a group the Health Services Agency says current resources do not fully serve.

Key facts

Increase of $319,000 to Contract No. 27H2537 with New Life Community Services, for a new estimated total encumbrance of $5,286,509 in Fiscal Year 2026-27.
Paid for with California Board of State and Community Corrections money under Proposition 47 and Assembly Bill 109 Public Safety Realignment allocations; the report states no new County General Funds are needed or requested.
Money is budgeted in Health Services Agency Behavioral Health's Fiscal Year 2026-27 budget under account 364042/62367.
Referrals come through RENEWPath, started in Fall 2024 with Probation, the Sheriff's Office, Public Defender, District Attorney and treatment providers, funded by a Proposition 47 Cohort IV grant.
Participants must be 18 or older, have a substance use or co-occurring diagnosis, be unsheltered or unstably housed, be county residents enrolled in Santa Cruz County Medi-Cal if eligible, and not be Assembly Bill 109 eligible.
Listed on the consent agenda, meaning it can be approved together with other items unless a supervisor pulls it for separate discussion.

Reasons to support

The county says pairing sober housing with required outpatient treatment helps people sustain recovery, reduces criminal legal system involvement, and opens paths to jobs and school.
Staff say current resources do not meet demand for safe, supportive housing combined with treatment for justice-involved residents, and the new residence fills that gap.
The expansion also strengthens the county's residential continuum of care and improves Medi-Cal network adequacy, and is covered by state corrections funding rather than county general funds.

Reasons to oppose or change it

The funding comes from Proposition 47 and Assembly Bill 109 state allocations, including a Proposition 47 Cohort IV grant — so the service depends on grant money continuing rather than a stable county source.
Beds are reserved for RENEWPath referrals, meaning people with substance use disorders who have no criminal justice involvement, or who are Assembly Bill 109 eligible, would not qualify for this residence.
The amendment raises the total encumbrance to $5,286,509 with a single provider, New Life Community Services, deepening the county's reliance on one contractor for residential substance use treatment.

Official wording

Approve first amendment to rate/fee-for-service agreement with New Life Community Services, increasing the encumbrance by $319,000 for a total amount of $5,286,509, to fund new Recovery Residence for adults with substance use disorders, and take related actions (Health Services Agency)

Official agenda Staff Report Amendment 27H2537 New Life Community Services (eSign)

Summary written by claude-opus-5 from the agenda and the Staff Report. It can contain mistakes. The official documents govern.