Operating Subsidy Payment (OSP) Program - Community Care Expansion (CCE) Preservation Program

Post Information
Posted At:
Mon, Aug 14, 2023 11:47 AM
Sealed Bid Process:
No
Private Bid:
No

1. Overview/Timeline
   1.1. Summary

California has a shortage of licensed Adult Residential Facilities (ARFs) and Residential Care Facilities for the Elderly (RCFEs) that accept individuals receiving or applying for Supplemental Security Income/State Supplementary Payment (SSI/SSP) or Cash Assistance Program for Immigrants (CAPI).  Many adult and senior care facilities that accept SSI/SSP or CAPI residents in Sacramento County and across the state are closing or reducing the number of these recipients that they can serve, as benefit amounts have not kept up with the rising cost of housing.

The Sacramento County Department of Child, Family and Adult Services (DCFAS), Senior and Adult Services (SAS) Division, is seeking all eligible ARFs, RCFEs, and Residential Care Facilities for the Chronically Ill (RCFCIs) that serve SSI/SSP or CAPI residents, also known as Qualified Residents, that are in need of operational subsidies. Sacramento County DCFAS can provide Operating Subsidy Payments (OSP) to eligible residential adult and senior care facilities for costs associated with the day-to-day cost of physical operations.  The intent of OSP is to provide operating subsidies to existing eligible residential adult and senior care facilities to preserve and avoid their closure and/or reduction in the number of beds for qualified residents and resident exits to homelessness.

1.2. Background

The Community Care Expansion (CCE) Preservation Program was established by Assembly Bill 172 (Chapter 696, Statues 2021) to respond to the shortage of residential adult and senior care facilities that accept individuals receiving or applying for SSI/SSP or CAPI.  The California Department of Social Service (CDSS) oversees the program with Sacramento County DCFAS as the local administrator. The CCE Preservation Program provides funding for operations and deferred capital projects to ARFs, RCFEs, and RCFCIs that serve qualified residents that are at risk of closure or at risk of reducing the number of beds for these residents.

1.3. Contact Information
Thomas Hannon
ASO 2
Email: hannonth@saccounty.gov
Phone: (916) 875-7131

Department:
Child, Family and Adult Services

Department Head:
Michelle Callejas
Director

1.4. Timeline
Release Date:
August 14, 2023
Please Respond By:
December 31, 2027, 5:00pm
2. Funding Priorities
2.1. Funding for OSP will be prioritized as follows:

1st - Facilities at the highest risk of closure that can be prevented through OSP funds.

2nd - Facilities with the highest number/percentage of qualified residents.

3rd - Facilities that accept and serve qualified residents placed by Sacramento County programs.

3. OSP Eligible Recipient
   3.1. At minimum, the OSP applicant must meet all the following eligibility criteria (Eligible Recipient):

A. Be an existing licensed ARF as defined in Title 22, section 80001(a)(5) of the California Code of Regulations; RCFE, as defined tin Title 22, section 87101(r) (5) of the California Code of Regulations; or a Residential Care Facility for the Chronically Ill as defined in Title 22, section 87801(r)(5) of the California Code of Regulations.

B. Currently serve at least one Qualified Resident (recipients of Supplemental Security Income/State Supplementary Payment and Cash Assistance Program for Immigrants).

C. Be in good standing with Community Care Licensing (CCL) Division or, if the facility is not in good standing, provide a certification that the program funds will bring the facility into good standing.

D. Have a critical monthly or annual operating and cash flow gap that places the facility at risk of closure or risk of reducing the number of beds for Qualified Residents.

3.2 The Eligible Recipient must also agree to meet the following conditions throughout implementation:

A. Agree to continue serving Qualified Residents. 

B. Agree to prioritize applications from Qualified Residents who are part of the Prioritized Population (individuals experiencing or at risk of homelessness).

C. Agree to remain in good standing with CCL Division.

D. Have recorded a deed restriction on the facility or property requiring that the facility continue to provide licensed adult and senior residential care for the duration of the agreement between Sacramento County and the Eligible Recipient.

E. Agree to use the Program Funds to cover operating costs associated with the day-to-day physical operation of the facility, including covering costs of utilities, maintenance and repair, staff and payroll costs, marketing, leasing, taxes and insurance, office supplies, accounting, and strategic planning. Program Funds used for OSP may not supplant other funding available from existing local, state, or federal programs and grants supporting Qualified Residents and may not supplant the Qualified Residents' payments to the Eligible Recipient. Program Funds cannot be used for costs unrelated to operations, distributions to the facility owners, to pay tort claim liabilities, or pay costs associated with a change of ownership.

4. OSP Agreements
   4.1. Prior to disbursement of OSP, Eligible Recipients must enter into a written agreement with Sacramento DCFAS. Recipients of OSP funds at minimum shall agree to:

Reporting obligations

Permit Sacramento County, California Department of Social Services (CDSS) and HORNE (CDSS' third-party administrator) to have access to, examine or audit any pertinent books, documents, papers and records related to this funding and to allow interviews of any employees who might reasonably have information related to such records.

Cooperate with any desk reviews or site inspections. 

Respond to requests for information from Sacramento County DCFAS, CDSS, and HORNE.

Recipients will be required to record a deed restriction or regulatory agreement on the funded facility requiring that the facility continue to provide licensed residential adult and senior care for a minimum duration equal to the term of the agreement. The deed restriction must be recorded on the title to the property upon which the facility is located before the disbursement of any funds. If the Recipient leases the facility or property, the deed restriction must be signed by both the Recipient and the owner of the fee interest in the property and recorded against both the fee interest in the property and the leaseholder. 

Provide an annual audit within ninety (90) days of the end of the fiscal year, if applicable.

Report material changes, such as changes in key staff or litigation against the Recipient or the facility, within thirty (30) days of such occurrence; and

Such other provisions required by Sacramento County DCFAS, CDSS, and HORNE.

5. Administrative Requirements
   5.1. Sacramento County DCFAS reserves the right to:

A. Reject any or all applications, if a respondent does not meet the submission criteria.

B.  Determine which applications shall be accepted as meeting the criteria stated.

C. Require information in addition to the application for further evaluation, verification or clarification, if necessary.

D. Conduct an informational meeting if necessary and/or request a Letter of Intent regarding further interest in the selection process.

E.  Determine the amount of resources allocated to respondent(s) and/or make awards for all or any portion thereof.

F.   Issue addenda and/or supplements to this DOI if deemed necessary at any time.

G.  Cancel this DOI for any reason.

6. Eligibility Assessment/Funding Distribution
   6.1. After identifying eligible recipients through this DOI, Sacramento County DCFAS will assess the recipient's:

Priorities and goals;

Financial feasibility, and financial resource capacity to manage the facility

Ability to adhere to program guidelines; and

Staff capacity

7. Application Instructions
   7.1. Complete and submit the Application in accordance with all instructions in this notice.

A. Submit a complete Application and meet the minimum qualifications as stated in this document. All others will be rejected.

B. Submit the Application via OpenGov.com only. Responses received by fax, mail, email, hand delivery, or other method will not be accepted.

8. Application
9. Facility Name*
   *Response required
10. Address*
    *Response required
11. License Number*
    *Response required
12. Facility Type*
    Adult Residential Facility (ARF)
    Residential Facility for the Elderly (RCFE)
    Residential Care Facility for the Chronically Ill (RCFCI)
    *Response required
13. Number of beds*
    *Response required
14. Number of Qualified Residents currently serving *
    *Response required
15. Point of contact name*
    *Response required
16. Phone number*
    *Response required
17. Email address*
    *Response required
18. I attest to meeting the qualifications of this Application*
    Yes
    No
    *Response required
19. Estimated amount of OSP requested per year:*
    *Response required
20. OSP funds would be used for (select all that apply):*

Select all that apply

Staff and payroll costs
Utilities
Maintenance and repairs
Taxes and Insurance
Other
*Response required

Attached documents:
• Operating_Subsidy_Payment_(OSP)Program-Community_Care_Expansion(CCE)_Preservation_Program.pdf