Loan programs for facilities for persons with developmental disabilities.

Under existing law, the California Health Facilities Financing Authority Act, the California Health Facilities Financing Authority administers various provisions relating to the financing of health facility projects, including construction and renovation projects. Existing law includes within the definition of a health facility, for purposes of the act, a residential facility, which is defined to include a residential facility for persons with developmental disabilities, as provided for under the provisions permitting proposals for housing for these persons to be approved by the department. Existing law specifically exempts from this definition a residential facility for persons with special health care needs, as defined. This bill would delete this exemption. The California Health Facilities Financing Authority Act also defines "participating health institution" to mean a city, city and county, or county, a district hospital, or a private nonprofit corporation or association authorized by the laws of this state to provide or operate a health facility and that undertakes the financing or refinancing of the construction or acquisition of a project or of working capital. This bill would add to this definition a limited liability company whose sole member is a nonprofit corporation or association to which the above-described conditions apply. Existing law, the Small Facility Loan Guarantee for Developmental Disability Programs, creates a program to provide loan insurance to nonprofit corporations that provide community-based programs that assist clients with developmental disabilities that live in institutional settings to move to more independent living arrangements. This bill would rename those provisions as the Small Facility Loan Guarantee for Programs Serving People with Developmental Disabilities. Under existing law, facilities approved by area developmental disabilities boards are eligible for loan insurance pursuant to the program if they meet specified criteria. Existing law provides, with respect to loan eligibility, that facilities shall not require prescribed approval for the issuance of loan insurance until a specified determination is made. This bill would delete this provision. Existing law, known as the Bay Area Housing Program, permits the State Department of Developmental Services to approve a proposal by Golden Gate Regional Center, Regional Center of the East Bay, and San Andreas Regional Center to provide for, secure, and ensure the full payment of a lease or leases on housing for persons with developmental disabilities, if prescribed conditions are met. This bill would require, under the loan insurance program, that these regional centers provide for, secure, and ensure the full payment of a lease or leases developed pursuant to these housing proposal provisions. Existing law creates the California Housing Finance Fund, which is continuously appropriated to the California Housing Finance Agency for the purpose of making housing construction loans. The bill would allow, upon the order of the Director of Finance, a loan from the General Fund to the California Housing Finance Fund in an amount not to exceed the unpaid principal balance of loans for the above-described housing, but not more than $88,000,000, in a specified situation and to be repaid from proceeds of the California Health Facilities Financing Authority's issuance of bonds for the program prior to June 30, 2011. Existing law requires that the total amount of loans insured pursuant to this program not exceed $15,000,000 and gives preference for loans under $300,000 to single facilities that will serve 6 or fewer persons. Under existing law, loans up to $300,000 may be insured for the total construction amount. This bill would allow loans to be insured for the cost of construction, improvement, and expansion, which may exceed the current value of the health facility when supported by other security for, or guaranty of, the debt. The bill would increase the total amount of loans that may be insured pursuant to the program to $100,000,000. Existing law also provides for a pilot program, not to exceed 30 facilities, to insure loans to nonprofit borrowers that are not licensed to operate the facilities, as specified, and limits the aggregate amount of the loans insured through this pilot program to $6,000,000. This bill would eliminate the designation of this program as a pilot program. It would limit eligible borrowers to those that have a long-term residency lease, as defined, with a service provider selected by the applicable regional center. It would provide that the number of facilities that could be insured would be increased from 30 to 100 and the total aggregate amount of these loans insured would be increased to $100,000,000. Existing law establishes the Health Facility Construction Loan Insurance Fund in the State Treasury, to be continuously appropriated to carry out the provisions and administrative costs of the California Health Facility Construction Loan Insurance Law, including the program for insuring loans relating to facilities for people with developmental disabilities described above. By increasing the aggregate amount of the loans that may be insured through this program and by expanding program eligibility, this bill would constitute an appropriation. This bill would declare that it is to take effect immediately as an urgency statute.