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CC - CONSENT ITEM: Approval of an Amendment to Existing Professional Services Agreement with Exodus Recovery Inc., as Lead Supportive Service Provider, Operator and Property Manager of the 73 Unit (Plus Two Manager Units) Service-Enriched Culver City Project Homekey Interim and Permanent Supportive Housing Program for Fiscal Year 26/27 in an Amount Not-to-Exceed $4,180,500.
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Meeting Date: June 22, 2026
Contact Person/Dept.: Christina Stoffers-Himmelman, Housing and Human Services
Robert Parga, Housing and Human Services
Phone Number: (310) 253-5789
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - Advisory Committee on Housing and Homelessness (05/11/2026); City Council (06/17/2026)
Department Approval Name, Title Date: Diane Glauber, Housing and Human Services Director (05/11/2026) _____________________________________________________________________
RECOMMENDATION
Staff recommends the City Council approve an amendment to extend by one year the existing professional services agreement with Exodus Recovery Inc. (Exodus), as the lead supportive service provider, operator, and property manager of the 73 unit (plus two manager units) service-enriched Culver City Project Homekey Interim Housing and Permanent Supportive Housing Program for Fiscal Year (FY) 26/27 in an amount not-to-exceed $4,180,500.
BACKGROUND
In response to the growing homelessness crisis in Los Angeles County and its local impacts, the City Council adopted a Resolution ratifying a Proclamation of Local Emergency on Homelessness on January 9, 2023.
To address this crisis, Culver City has implemented a localized Continuum of Care (CoC) approach that focuses on providing housing and supportive services for residents experiencing chronic homelessness. As part of this effort, the City Council has established several key programs and resources, including the:
• Project Homekey Interim and Permanent Supportive Housing Program
• Wellness Village
• Motel Master Leasing and Nutrition Program
• Mobile Crisis Team
DISCUSSION
In 2022, Culver City was awarded $26.6 million through the State of California’s Project Homekey Round 2 program to develop the City’s Project Homekey Interim Housing (IH) and Permanent Supportive Housing (PSH) Program (Program), located at 3868-3900 Sepulveda Boulevard.
Opened in October 2023, the Program operates as a two-component model. Two former motel properties were converted into a co-located, service-enriched housing community designed to address chronic homelessness through interim, or short-term, housing and long-term housing solutions. The Program provides a total of 73 units, including 38 interim housing units or short-term housing and 35 permanent supportive housing units for long-term, apartment-style living with wraparound supportive services. While both components include 24/7 property management, on-site case management, and coordination with service providers under a Housing First, low-barrier approach, IH is designed to provide more intensive, day-to-day support, such as meals, health monitoring, and transportation, to stabilize participants and prepare them for permanent housing. In contrast, PSH focuses on long-term housing stability and tenant independence, with ongoing supportive services to help residents maintain permanent housing.
Since 2023, the City has contracted with Exodus to serve as lead service provider, property manager, and operator of the Program. Exodus has over 35 years of experience providing behavioral health and substance use disorder services across multiple California counties. Their integrated, field-based model delivers outreach, case management, housing support, and care coordination to individuals with complex needs, promoting housing stability and improved health outcomes. At the Program, Exodus provides 24/7 on-site oversight and a range of supportive services, including case management, medical and medication support, life skills development, mental health services and group therapy, substance use support, housing placement services, and linkages to community-based resources. Since the Program’s opening, Exodus supported ongoing operations and resident stability.
As recipients and operators of the Program, both the City and Exodus are required to comply with all applicable terms, conditions, and performance obligations set forth in the Memorandum of Understanding (MOU) with the California Department of Housing and Community Development (HCD).
Program Implementation & Performance
As defined by HCD, the City and Exodus must evaluate the Program implementation based on the following performance measures:
• Residential Stability: Tenant maintains permanent housing
• Increase Skills and/or Income: Tenants gain job related skills, gain job-related training or education, gain stipend part-time or full-time employment, gain access to mainstream services/income support programs for which they are eligible
• Greater Self-Determination: Tenants gain daily living skills and ability to plan and for themselves to maximize independence and self-sufficiency
Permanent Supportive Housing’s Scope of Work includes but is not limited to the following:
• Provide housing to chronically unhoused individuals referred through the Coordinated Entry System (CES), prioritizing those with ties to Culver City
• Oversee day-to-day property operations, including maintenance, janitorial services, landscaping, and IT
• Deliver on-site case management and 24-hour property management
• Provide security services and access to laundry facilities
• Coordinate with healthcare providers, public agencies, and community partners
• Support tenants transitioning into permanent housing using a Housing First, low-barrier, trauma-informed approach
• Participate in Advisory Committee on Housing and Homelessness meetings and community engagement efforts
Interim Housing’s Scope of Work includes but is not limited to the following:
• Provide short-term housing and intensive case management for chronically unhoused individuals referred through CES
• Prioritize high-acuity individuals, including those with mental health and substance use challenges
• Deliver 24/7 health monitoring and on-site support services
• Provide daily meals, transportation, and front desk/reception services
• Maintain the property, including janitorial, landscaping, and routine maintenance
• Provide security, laundry services, and basic needs support
• Coordinate with healthcare providers and community partners to support transitions to permanent housing
• Participate in Advisory Committee on Housing and Homelessness meetings and community engagement efforts
To ensure the performance measures set out by HCD are met, Exodus has staffed the following positions to provide support to program participants:
• Program Director (LMFT/LCSW) - 1 Full Time Employee (FTE) - Oversees staff; facility operations; referrals & intake, contract compliance, client escalation support, reporting, etc. Responsible for the day-to-day housing, including the intake and exit processes. Minimum Qualifications: Bachelor's degree preferable or 2 years’ experience providing direct service for people experiencing homelessness.
• Team Lead - 1 FTE - Assist the Program Director in overseeing staff, managing census, conducting clinical documentation audits, creating and maintaining RA schedule, supporting staff with training and client care.
• Admission Coordinator - 1 FTE - Tracks referrals and admissions, ensures smooth process and coordinates logistics for client's arrival, supports facility operations (including data entry with Homeless Management Information System (HMIS), etc. Provides administrative support to program.
• Mental Health Clinicians/Substance Abuse Counselor (MSW) - 2 FTE - Provides mental and behavioral health support to participants
• Case Manager/CD Coordinator - 3 FTE - case management to participants, including care coordination, skills building, and support around substance use issues. Participant in staff ratio around 25:1.
• Licensed Vocational Nurses (LVN) (Days) - 2 FTE - Provides medication support and education, and infection control screening to participants. LVN shifts can be 12 hour shifts 4 days per week. 1 LVN on day shift-7 days a week.
• Residential Aid - (Days/Nights) - 6 FTE - Perform housekeeping duties, assist with food service, assist clients with laundry, etc. 3 staff per day shift, 7 days a week.
Since the launch of the PSH component in October 2023, the Program has served 50 participants. Of the 35 originally placed into the PSH Program, 23 have remained housed, representing an ongoing housing retention rate of 66% and demonstrating the Program’s effectiveness in supporting long-term housing stability for residents with high needs.
Enrollment into the Program was staggered, with the IH component beginning in February 2024. Since that time, 80 individuals have been served through IH, with a total of 19 participants successfully exiting into permanent housing with 14 of those successfully transitioning into the Program’s PSH units and 5 participants securing other permanent housing opportunities.
FISCAL ANALYSIS
Exodus has consistently operated within its approved annual budget and has not exceeded allocated funding. As a result, between 10-20% of the contract amount has remained unexpended each fiscal year. Staff proposes using this unexpended funding to enhance on-site services at the Project Homekey (PHK) Program through the addition of targeted personnel:
• Clinical Supervisor - 1 FTE - to provide licensed clinical oversight, support program operations, and supervise Board of Behavioral Sciences (BBS)-registered staff, including approval of clinical hours
• Occupational Therapist - 1 FTE - to address participants’ physical and functional health needs, support activities of daily living, and help remove barriers to housing stability, while also supporting the development of an intern program
• Licensed Vocational Nurse (LVN) - per diem - to provide on-site medical support, including medication assistance, health education, and infection control screening.
Using the unexpended contract capacity in this manner would enhance service delivery without increasing the overall contract amount, resulting in expanded clinical support, improved client care and outcomes, and increased staff capacity at the Program.
The proposed extension to the agreement with Exodus establishes an annual not-to-exceed amount for the contract term of $4,180,500 for Fiscal Year 2026/2027. The FY 2026/2027 funding level is consistent with the FY 2025/2026 adopted budget of $4,180,500, which supports staffing, operations, and services for all 73 units across both the interim housing and permanent supportive housing components.
Sufficient funding for the agreement has been included in the Proposed Budget for FY 2026/2027 in Accounts 10135400.619830 (Homekey Interim Housing - Other Contractual Services) and 10135500.619830 (Homekey Permanent Housing - Other Contractual Services).
Since the Program’s inception, operations, supportive services, and property management have been funded through a combination of the City’s General Fund and external grant sources, including the following:
• California Department of Housing and Community Development Homekey Round 2 Grant - $3,751,814 (one-time funding awarded in FY 2022/2023)
• Cities of Councils of Government Interim Housing Services Grant - $1,109,600 (one-time funding awarded in FY 2024/2025)
• Intensive Case Management Services (ICMS) Grant - $588,000 (funding awarded across FY 2023/2024 through FY 2027/2028)
• Los Angeles County Homeless Initiative New Framework Grant - $1,220,560 (one-time funding awarded in FY 2025/2026)
ATTACHMENTS
None.
recommended action
MOTION(S)
That the City Council:
1. Approve a one-year extension to the professional services agreement with Exodus Recovery Inc., as lead supportive service provider, operator, and property manager of the 73 unit (plus two manager units) service-enriched Culver City Project Homekey Interim Housing and Permanent Supportive Housing Program for Fiscal Year (FY) 26/27 in an aggregate amount not-to-exceed $4,180,500; and
2. Authorize the City Attorney to prepare/review the necessary documents; and
3. Authorize the City Manager to execute such documents on behalf of the City.