Santa Clara County has launched a $2 million grant program designed to improve living conditions in independent living homes across the region. The initiative seeks to address long-standing issues within these residences, which house some of the county's most vulnerable populations, including individuals managing mental health challenges.

Created last year, the grant will fund essential property improvements such as roofing and plumbing repairs, appliance replacements, and bathroom and kitchen remodels. District 4 Supervisor Susan Ellenberg highlighted the importance of these homes in housing residents with behavioral health and other life challenges, acknowledging that many operate without licensing or oversight. She described the county’s investment in Behavioral Health Bridge Housing as an important step toward ensuring residents live in a safe, stable, and dignified environment.

Applications for the grants, which range from $10,000 to $450,000 per property, are being accepted on a rolling basis until June 30, 2027, or until all funds are distributed. As part of the award process, the county plans to conduct inspections both before and after funds are disbursed. Staff will also evaluate how the money is used and its benefits to residents.

However, concerns have been raised regarding the oversight of grant recipients. Lorraine Zeller, coalition lead with the Community Living Coalition, emphasized the need for more safeguards to ensure that only suitable operators receive funds, particularly given some operators' past histories. She suggested that researching properties and conducting background checks on applicants before decisions are made could provide necessary protections for residents. Zeller stressed the importance of ensuring that homes receiving money meet, or even exceed, certain living standards.

Despite these concerns, a spokesperson for Santa Clara County Behavioral Health Services stated that the county does not plan to conduct background checks, explaining that funding decisions will be made through a competitive solicitation process. Supervisor Ellenberg, however, expressed that including background research in the grant application process is an appropriate and necessary safeguard.

Matt Jacobsen, who operates independent living homes with UPL Enterprises LLC, noted the significant impact even a $25,000 grant could have, citing potential improvements like fixing leaking roofs, upgrading bathrooms, and installing air conditioning. He believes that enhancing the quality of the home itself directly improves the quality of living for tenants. Jacobsen also suggested that the county could make a more concerted effort to inform operators about the availability of these funds, including through word-of-mouth outreach. Currently, six operators have applied for funds.

Previous investigations into independent living homes have documented severe issues, including bed bugs, plumbing failures, broken appliances, drug use, and verbal harassment. For example, one operator in San Jose illegally converted a property on 659 N. 13th Street into an independent living home, reportedly overcrowding tenants and creating makeshift living spaces, while allegedly mismanaging rent payments.

Advocates argue that while property repairs offer some relief, addressing habitability alone is not enough to solve the deeper, systemic issues. Unlike licensed residential care homes, which are monitored by the state Department of Social Services for cleanliness and standards of care, independent living homes are largely unregulated and unmonitored by the state.

This lack of oversight comes amid a growing shortage of beds in licensed facilities. A 2020 county audit revealed that over 30 licensed residential care facilities closed between 2014 and 2018, resulting in the loss of 262 beds. This decline has left people with mental illness with limited options after hospital discharge or residential care, often leading to homelessness, incarceration, or re-hospitalization.

Zeller recently learned that five independent living homes were at risk of closing due to code violations and overcrowding. She advocates for an emergency response group to assist residents in finding alternative housing in such situations. Ellenberg confirmed that the county is reviewing independent living homes and intends to address habitability where public funds are involved, particularly for behavioral health clients under county care placed in these homes. The county’s objective is to incentivize responsible operators and improve living conditions.