Capital for Expanding CPEPs Round 2

The New York State Office of Mental Health (OMH) has released the second round of its Capital for Expanding Comprehensive Psychiatric Emergency Programs (CPEPs) initiative, offering up to $20 million in capital funding and $3 million in startup funds to expand or establish new CPEP sites throughout New York State. This program responds to an urgent and ongoing need for accessible, high-quality emergency psychiatric services. CPEPs play a critical role in offering triage, observation, evaluation, and treatment for individuals in behavioral health crises, including those with co-occurring substance use disorders, intellectual and developmental disabilities, or medical issues. The current solicitation, designated as MH253019, builds on OMH’s commitment to expanding equitable access to emergency mental health care. The funding is structured to support both new CPEP developments and renovations to existing facilities. Awards of up to $5 million in capital funds are available per new CPEP, with an additional $1 million per project available for renovation and expansion to improve facility milieu. Projects may include the construction of new facilities, acquisition of real estate, or rehabilitation of existing spaces. Specific funding is set aside to encourage the expansion of adult-serving CPEPs to include services for children, particularly through modifications such as family-friendly waiting areas and distinct evaluation zones for younger populations. Milieu improvement grants are aimed at increasing physical space, improving treatment environments, and ensuring safety without reducing the number or area of Extended Observation Beds (EOBs). Eligible applicants include New York State Public Health Law Article 28 licensed general hospitals that are structured as public benefit corporations, county-operated programs, government entities, or not-for-profit organizations exempt from federal income tax under section 501(c). Applicants must be in good standing with OMH and operate OMH-licensed, certified, or authorized programs. Prequalification through the Statewide Financial System (SFS) is required for all not-for-profit entities. A notification of intent to apply must be submitted to the relevant Local Governmental Unit (LGU), and proof of such notification must be uploaded as part of the application submission in SFS. No paper or email submissions are permitted. Proposals must include a comprehensive capital budget submitted through SFS, and for new CPEPs, a two-year startup budget is also required. Applications must address evaluation criteria including population needs, program description, implementation, organizational capacity, and diversity, equity, and inclusion planning. Evaluation is based on a 100-point scale. Applicants are encouraged to demonstrate plans for quality assurance, staff qualifications, culturally and linguistically competent care, family and peer involvement, and sustainability post-grant. CPEPs must operate 24/7 and provide mobile crisis outreach services. Key dates include a proposal deadline of March 24, 2026, by 2:00 PM EST, with an anticipated award announcement on May 5, 2026. The program encourages early engagement due to the complexity of registration and prequalification requirements. A bidders’ conference is scheduled for January 27, 2026. Proposals must be submitted exclusively through the SFS platform, with all documentation combined and formatted as specified. All awards are subject to approval by the NYS Attorney General and the Office of the State Comptroller. The contract term for awarded projects will be five years, during which OMH will monitor adherence to all licensing and reporting requirements under 14 NYCRR Part 590.

Submit early to avoid SFS issues; Prequalify in SFS in advance; Label attachments clearly; No late submissions accepted.