California Code of Regulations
Title 22 - Social Security
Division 7 - Health Planning and Facility Construction
Chapter 5 - Health Facility Construction Loan Insurance
Article 2 - General Provisions
Section 91550 - Fee for the Performance of Feasibility Studies for Federal Loan Insurance Programs

(a) For the purposes of this section, "study" means a study of market need and feasibility for any federal mortgage insurance program for health-related facilities, including the HUD 242 loan insurance program.

(b) The administrative cost of commissioning a study is a fee of five thousandths of one per cent (.005%) of the principal amount of the loan applied for by the health-related facility applying for the study; except that the minimum fee is $1,000 and the maximum fee is $5,000.

(c) At the time of requesting a study, the applicant shall pay to the Office one-half ( 1/2) of the fee owed to the Office, calculated pursuant to subsection (b) above. This amount is non refundable.

(d) After the Office selects a consultant, and before the Office executes a contract with the consultant for the performance of the study, the applicant:

(e) After the consultant and the Office sign the contract for the study, no part of the fee paid to the Office to cover the administrative costs of the Office shall be refundable, even if the applicant cancels or terminates its request for the study prior to the completion of the study.

(f) If for any reason the study is not completed after the consultant and the Office sign the contract for the study, no part of the deposit for use by the Office to pay the consultant shall be refundable to the applicant until after the applicant requests the Office in writing to stop the study and the consultant agrees that no additional fees are owed to the consultant.

(g) If, after the study is completed, the final cost of the study by the consultant is less than the amount deposited by the applicant with the Office for that purpose, the Office shall refund the balance to the applicant.