Program 780 Transition Coordination: Transition Costs and Flexible Funds

Dear Providers of DMH Program 780 Transition Coordination services:

We are pleased to inform you that your grant agreements with DHS/DMH for Program 780 Transition Coordination are being amended to add funding for Transition Costs and Flexible Funds in order to help facilitate the transition of Williams and Colbert Consent Decree Class Members from SMHRFs/NFs into community settings.

Transition Costs

This service was previously provided via transition cost card administrators who provided the transition cards with up to $2,800 per Williams Class Member and $4,000 per Colbert Class Member. The process of acquiring transition cards through a third party administrator for each Class Member transitioning into the community will no longer be necessary. This funding will now be included in the Transition Coordination grant agreement effective November 4th, 2019. The definition of Transition Costs remains the one-time payment of allowable expenses necessary to accomplish the transition of a Class Member from a Nursing Facility to a Community-Based Setting, limited to those expenses that are necessary to enable a person to establish a basic household that do not constitute room and board. Expenditures utilizing these funds include, but are not limited to, items such as security deposits, essential household furnishings, moving expenses, and utility deposits.

Flexible Funds

The purpose of Flexible Funds is to allow providers the additional flexibility in the use of funding to further Class Member transitions. The grant increase for Flexible Funds is calculated based on an average of $1,000 per Williams and Colbert Class Member transitioned to the community effective November 4, 2019. The funding can be tied to the use of supporting Class Members transitioning to the community or to help sustain Class Members already in the community. The funding must be used on an approved expense such as:

  1. Temporary housing assistance for those Class Members whose SSI/SSDI funding has been approved but is not yet in place;
  2. Landlord mitigation funds;
  3. Temporary income supplements for class members with approved SSI/SSDI funding;
  4. Costs for additional pre-transition needs not covered by the transition funds (i.e., personal items, etc.), and/or
  5. Transportation or other Service Plan related services otherwise not covered.

Program 780 Transition Coordination Payment Process

Payment for this grant will continue to be issued quarterly and reconciled quarterly utilizing monthly reported allowable expenses. Details are provided in the newly revised exhibit for these amendments that will be available for review in the CSA system when the amendments are entered. The October payments for Transition Coordination activities have already been made. The effective date of the new Transition Costs and Flexible Funds is November 4, 2019, and payments for November and December (remainder of Quarter 2) for these activities will be made on or shortly after November 4th. Expenses will be reconciled on a quarterly basis utilizing the monthly reports now due no later than the 30th day of the month following the end of the service month. If more transitions occur and higher costs are incurred for Transition Coordination, Transition Costs, and/or Flexible Funds during the quarter, the grantee will receive additional payment for each additional Transition Coordination effort, Transition Costs, and/or Flexible Funds expended. If fewer transitions occur resulting in less expenditures than the advanced amount during the quarter, reconciliation will occur against the advance payment amount.


  1. These amendments cannot be processed until ALL providers have completed their amendments for the 2.5% COLA.
  2. Colbert providers are also receiving adjusted target transition numbers and funding.
  3. Although total funding amounts represent full year funding, the effective date for Transition Costs and Flexible Funds usage is 11/4/19 so as not to overlap with the current transition cost card administration agreements.

Information on Programmatic changes (i.e. PSH packet edits and workflows) to complement this contractual change will be provided prior to November 4th, 2019.

If you have any questions or need further assistance, please reach out to your program contact.

Best Regards,

DHS/DMH Fiscal Office