Proposition 1 – Behavioral Health Continuum Infrastructure Program Round 2: Unmet Needs
This funding opportunity provides over $800 million to support the construction and rehabilitation of facilities that expand mental health services for vulnerable populations in California, including unhoused individuals, veterans, and children.
The California Department of Health Care Services (DHCS) has launched Round 2 of the Behavioral Health Continuum Infrastructure Program (BHCIP) under the Behavioral Health Infrastructure Bond Act of 2024. This initiative, authorized by Proposition 1 and Assembly Bill 531, aims to address persistent gaps in the behavioral health care system and expand access to services across California. The BHCIP Round 2: Unmet Needs funding opportunity builds upon the state’s ongoing investments to improve behavioral health infrastructure and outcomes for vulnerable populations. The purpose of this round of funding is to provide over $800 million to construct, acquire, and rehabilitate real estate assets to expand behavioral health treatment and service resources in California. The program targets unmet needs in the behavioral health continuum, prioritizing mental health community residential beds and crisis settings. The initiative seeks to serve Medi-Cal members and populations including unhoused people, veterans, older adults, adults with disabilities, and children and youth. It also emphasizes geographic equity, with a focus on rural and remote areas, as well as regions without prior BHCIP investments. Eligible applicants include counties, cities, Tribal entities, nonprofit organizations, and for-profit organizations. Specific eligibility requirements include demonstrating project readiness, site control, sustainable business planning, stakeholder support, and alignment with state priorities. Applicants must also commit to serving Medi-Cal members and adhering to a 30-year building use restriction through a deed restriction. The required matching funds vary by applicant type, ranging from 5 percent for Tribal entities to 25 percent for for-profit organizations. Both cash and in-kind contributions are accepted, subject to DHCS approval. The application process includes mandatory pre-application consultations (PAC) and optional technical assistance (TA). The PAC window runs from June 26, 2025, to October 1, 2025, with a registration deadline of August 29, 2025. Informational webinars will be held in June 2025. Applications are due electronically by October 28, 2025, at 5 p.m. PT, with awards anticipated in Spring 2026. The application requires a comprehensive set of documents, including a development budget, project readiness materials, and various certifications. Applications will be evaluated based on their ability to expand behavioral health service capacity, alignment with state priorities, sustainability, and compliance with relevant laws. Selected projects must complete construction and be operational within five years of award. Ongoing reporting and compliance monitoring will be required for up to 30 years post-completion. The program also mandates adherence to California’s prevailing wage laws and encourages the use of streamlined, ministerial review processes where applicable. For more information, applicants can contact DHCS at BHCIP@dhcs.ca.gov or call (323) 545-6202. Additional resources and FAQs will be available on the BHCIP website to assist prospective applicants.
Award Range
Not specified - Not specified
Total Program Funding
$800,000,000
Number of Awards
Not specified
Matching Requirement
Yes - 10 percent for local government and nonprofit organizations, 25 percent for for-profit organizations, and 5 percent for Tribal entities.
Additional Details
Funding supports the construction, acquisition, and rehabilitation of behavioral health treatment and service facilities. Funds cannot be used to preserve existing capacity or for operational costs. Matching funds are required and vary by applicant type. A 30-year building use restriction applies.
Eligible Applicants
Additional Requirements
Counties, cities, Tribal entities (“Tribal entity” shall mean a federally recognized Indian tribe, Tribal organization, or urban Indian organization, as defined in Section 1603 of Title 25 of the United States Code), nonprofit organizations, and for-profit organizations whose projects reflect the State priorities and align with facility types listed in Table 2 are eligible to apply for this funding, noting the following stipulations: • Projects must make a commitment to serve Medi-Cal members. • Recipients of BHCIP awards in prior rounds, including Bond BHCIP Round 1: Launch Ready, are eligible to apply. Any additional Bond BHCIP funding awarded must be used to further expand or create new facility capacity. To be considered, applications must clearly explain the funding request for additional behavioral health project expansion and how it meets the statewide continuum of care. Bond BHCIP funding will not fund budget shortfalls or cost overruns for any previously awarded BHCIP projects. • For joint applications, all co-applicants must be named in the grant application and must submit letters of commitment that are included with the application. Coapplicants share the legal and/or fiscal responsibilities associated with the grant. • For-profit organizations with no prior behavioral health experience must apply with a partner, such as a nonprofit organization, Tribal entity, city, or county, with the requirement that the partner organization have relevant experience with the target population reflected in the successful development, ownership, or operation of a comparable project. A memorandum of understanding (MOU) or other agreement with the nonprofit organization, Tribal entity, city, or county to confirm the organization’s role in the project, including that they are working on behalf of the service provider, is also required.
Geographic Eligibility
All
Application Opens
Not specified
Application Closes
October 28, 2025
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