California Code of Regulations
Title 4 - Business Regulations
Division 10 - California Health Facilities Financing Authority
Chapter 7 - Investment in Mental Health Wellness Grant Program for Children and Youth
Section 7325 - Release of Grant Funds

Universal Citation: 4 CA Code of Regs 7325

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) Grant funds shall not be released until the following requirements have been met:

(1) A Grant Agreement has been executed by the Authority and Grantee.

(2) The Grantee has submitted to the Authority the following documentation, if available. If not available, Grantee has submitted a detailed statement concerning the status of obtaining any or all of this documentation to enable Authority Staff to determine readiness, feasibility and sustainability.
(A) For construction or renovation:
(i) Detail of building plans, costs, and timelines.

(ii) Executed construction contract.

(iii) Architect, design and engineering contracts, if applicable.

(iv) Building permits and conditional use permits, if applicable.

(v) Evidence of compliance with the CEQA.

(vi) Evidence of compliance with prevailing wage law under Labor Code Section 1720 et. seq.

(vii) Evidence of property ownership, such as a grant deed, title report, or lease agreement and title report as required under Section 7326.

(viii) In addition to subdivisions (a)(2)(A)(i-vii), prior to the release of Grant funds to a private nonprofit corporation or public agency designated by a county or Counties Applying Jointly for construction or renovation on real property acquired with Grant funds by the designated private nonprofit corporation or public agency, the designated private nonprofit corporation or public agency shall execute a Grant Agreement and agree to comply with Section 7325.1. The Lead Grantee may request the Authority to release the Grant funds to the designated private nonprofit corporation or public agency or to the Lead Grantee for disbursement to the designated private nonprofit corporation or public agency. The designated private nonprofit corporation or public agency shall return the Grant funds to the Authority if the designated private nonprofit corporation or public agency fails to comply with Section 7325.1.

(B) For real property acquisitions:
(i) An appraisal completed within the previous six months by a state certified appraiser.

(ii) Evidence of or execution plan to obtain legally required zoning for the Program(s).

(iii) In addition to subdivision (a)(2)(B)(i), prior to the release of Grant funds to a private nonprofit corporation or public agency designated by a county or Counties Applying Jointly to acquire real property, the designated private nonprofit corporation or public agency shall execute a Grant Agreement and agree to comply with Section 7325.1. The Lead Grantee may request the Authority to release the Grant funds to the designated private nonprofit corporation or public agency, or to the Lead Grantee for disbursement to the designated private nonprofit corporation or public agency. The designated private nonprofit corporation or public agency shall return the Grant funds to the Authority if the designated private nonprofit corporation or public agency fails to comply with Section 7325.1.

(C) For acquisition of furniture and equipment including vehicles: A list of items to be purchased and a copy of related purchase orders.

(D) For other eligible costs: Contracts and/or purchase orders.

(3) The Authority Staff has determined the Project is Ready, Feasible, and Sustainable. This determination will be made by evaluating the Grantee's documentation addressing the evaluation criteria listed in Section 7319, subdivision (a)(4) and in Section 7319.1, subdivision (a)(4).
(A) The determination that the Project is Ready, Feasible, and Sustainable may occur at the time of Initial Allocation or within the timeframes specified in Section 7319, subdivision (a)(4)(H), and Section 7319.1, subdivision (a)(4)(F).

(B) If the determination is made after Final Allocation, the determination shall be based on updated information provided to the Authority by Grantee in accordance with Section 7324, subdivision (a)(14).

(C) Limited extensions beyond the timeframes specified in Section 7319, subdivision (a)(4)(H), and Section 7319.1, subdivision (a)(4)(F), shall be made on a case-by-case basis at the discretion of the Executive Director for good cause, including but not limited to reasonable delays associated with obtaining building and conditional use permits, obtaining CEQA compliance documentation, or identifying a qualified provider.

(D) Failure to demonstrate readiness, feasibility, and sustainability within the timeframes dictated by the Authority shall cancel the Grant and the Grant funds shall be made available to other Applicants.

(4) The Grantee has submitted to the Authority a completed Request for Disbursement Form No. CHFFA 7 CY-02 (09/2018), which is hereby incorporated by reference. Except for the initial submission of the Request for Disbursement Form No. CHFFA 7 CY-02 (09/2018), an Actual Expenditures Report Form No. CHFFA 7 CY-03, (09/2018), which is hereby incorporated by reference, as required by Section 7328, subdivision (b), shall accompany all Requests for Disbursement Form No. CHFFA 7 CY-02 (09/2018).

1. New section filed 11-26-2018 as an emergency; operative 11-26-2018 (Register 2018, No. 48). A Certificate of Compliance must be transmitted to OAL by 5-28-2019 or emergency language will be repealed by operation of law on the following day.
2. Certificate of Compliance as to 11-26-2018 order transmitted to OAL 4-22-2019 and filed 5-20-2019 (Register 2019, No. 21).

Note: Authority cited: Sections 5848.5 and 5848.6, Welfare and Institutions Code. Reference: Section 5848.5, Welfare and Institutions Code.

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