An 11th-hour management transition at a Blackstone Avenue housing shelter kept nearly 200 people from being displaced Tuesday morning.

CalViva on Tuesday ended its contract with recuperative housing provider SOUL Housing, which operates a shelter at 4080 N. Blackstone Ave. The terminated contract could have meant 200 people out on the street, said Katie Wilbur, executive director of RH Community Builders, whom CalViva had contacted about transitioning care.

A representative from CalViva did not provide a reason why the contract with SOUL Housing was terminated.

A representative from SOUL Housing sent the following statement:

“While we wish that Health Net had informed us sooner that a continuity-of-care and transition plan would not be provided for their members, when it became clear that no such plan would materialize, Fresno’s community responded with extraordinary speed and collaboration,” the statement read. “SOUL Housing worked closely with (Fresno Mayor Jerry Dyer), RH Builders, and local partners to ensure that every participant could continue receiving the support and stability they need. This unified response from leadership and beyond reflects the commitment to compassion and care we share with Fresno.” 

Transition Plan Not Finalized Until Last Day of Contract

The representative from CalViva told GV Wire the managed care provider notified SOUL Housing about the termination of the contract 120 days prior — in accordance with state law.

The provider had contacted RH Community Builders, Universal Healthcare, Kings View Community Services, and Clinica Sierra Vista about creating a transition plan.

By as late as Tuesday, RH could not get SOUL Housing to agree to a plan, Wilbur said. About an hour after speaking with GV Wire, Wilbur said the for-profit housing provider agreed to let RH take over operations.

“When you’re closing a residential program, you’re actively trying to help people move on,” Wilbur said. “You don’t want to end up with 200 people in your beds on the day you need to be empty.”

CalViva had originally contacted RH in August to see if it could begin housing tenants. Wilbur said their 70-unit complex could only accept a few people.

“There’s just not 200 empty beds anywhere across Fresno no matter which way you shake the beds out,” Wilbur said.

Contract Termination Requires State Approval

When hospitals discharge homeless patients, California law requires they be sent somewhere safe. That’s where recuperative housing comes in.

Terminating a contract requires approval from the California Department of Health Care Services.

Wilbur did not know why the contract was terminated, but she said the reasoning has to be “significant documentation.”

“Either around poor quality of services, inappropriate billing, things like that,” she said.

The L.A. Times in August 2024 wrote of poor conditions at a SOUL Housing facility in South Los Angeles. SOUL Housing paid tenants who needed to be relocated after the L.A. Housing Department ordered resident to vacate because of those conditions.

GV Wire toured the SOUL Housing facility in July and did not witness poor conditions at the converted motel.