Current through all regulations passed and filed through March 18, 2024
Each application for state funds
is to contain
documentation demonstrating compliance or assurances of compliance with all
applicable requirements of this rule. State funding participation in a project
will be
disapproved for failure to provide necessary assurances or documentation. State
funding participation already approved for a project may be withdrawn for
failure to comply with the applicable assurances or requirements stated in this
rule.
(A)
Except as provided in paragraph (B) of this rule,
an applicant or
the approved tax credit owner for which it is the approved tax credit
managerwill assure both of the following:
(1)
That it has or
will have fee simple title to the property on which the project is to be
located;
(2)
That it will, prior to the state funding of any project
costs, be in lawful possession of the property on which the project is to be
located, including any necessary easements or rights of way.
(B)
Paragraph (A) of this rule does not apply if the property is
being leased for at least a thirty-year term or the chief has granted a waiver
from the requirement in accordance with rule
5122:3-1-17 of the
Administrative Code.
(C)
The applicant will secure and submit to the chief an
appropriate resolution from the applicable boards stating approval of the
project by the boards and their intent to support and monitor the
programs.
(D)
An
applicant
will assure
all of the following:
(1)
That
sufficient funds will be available to meet its share of project costs
from project initiation through project completion.
(2)
That
sufficient funds
or income from sources made known to the
department will be available as of the proposed opening date to operate the
facility in accordance with the approved programs.
(3)
That it
will execute the project in compliance with the community capital assistance projects process
guidelines.
(4)
That the
department, and other state or federal agencies or their agents or designees, as appropriate,
shall have access to the project at any time while under construction and
before final acceptance.
(5)
That the
applicant will maintain adequate and separate accounting and fiscal
records and accounts for all funds provided from any source to pay the cost of
an individual project and permit
departmental audit of such records and accounts at any reasonable
time.
(6)
That all
buildings and their contents
are kept appropriately insured against loss by
fire and acts of God for such amounts which will assure sufficient funds to
restore or replace the buildings and contents. Such insurance
will
include the department as an additional insured to the extent of state
participation and
will provide that the department, through the
chief, be promptly notified by the insurer of any delinquency in insurance
premium payments or cancellation of the policy.
(E)
The applicant
will agree to use and maintain the project for a
period of years designated herein for the purposes stated in the application
unless otherwise agreed to in writing by the department ("project period"). If
the project is not so used for the entire project period, the applicant will do either
of the following:
(1)
Pay to the department, at a minimum, an amount equal to the
total of any state funds reimbursed to the applicant pursuant to the approval
of the project as stated in the application times a fraction where the
numerator is the number of months that the project has operated as approved and
the denominator is the total number of months in the period in the project;
or
(2)
Permit the department to operate or transfer the
operation of the project, including the assignment of any contracts or other
interests, to another approved organization for the balance of the project
period. Such agreements will be documented on such security instruments,
contracts, and other legal instruments as deemed necessary by the department to
secure state funds reimbursed by the department to the applicant for approved
project costs. The project period will be thirty years.
(F)
If the applicant or approved tax
credit manager is a nonprofit corporation, all of the following conditions
apply:
(1) The
nonprofit corporation's articles of incorporation
are to
contain the following provisions in addition to those otherwise required by
law:
(a) A specific statement of purpose that
the corporation will provide a mental health or addiction service
that
will serve a public purpose;
(b) A
provision stating that upon dissolution of the
corporation, if such dissolution occurs within the thirty-year project period,
the department or its successor
is to be a party to any judicial proceeding or
dissolution agreement and that the department or its successor may be a
distributee under such order or agreement to the extent of its participation
and to the extent provided by law or the participation agreement which
originally set forth disbursal of funds to the corporation;
(2) The
nonprofit corporation's code of regulations or
bylaws, as applicable,
is to contain the following provisions in
addition to those specifically provided by law,
including any applicable executive orders:
(a) A provision limiting the number of terms
and length of term of office for
trustee
or directors and officers and prohibiting an employee or officer of the
corporation from being a
trustee or directors except that in a general
hospital or other facility where the mental health or addiction service program
is not the major function of the facility, an employee of the corporation may
be a
trustee or directors but
will
abstain from any vote of the board of
trustee
or directors directly affecting the service program;
(b) A provision stating that the board of
trustee or directors will include representatives
of the geographic community to be served;
(c) A provision that no persons related by
consanguinity or marriage (to a degree of first cousin)
will
constitute a majority of the board of
trustee
or directors;
(d) A provision to require the abstention of
a
trustee or directors in a vote on a matter affecting
persons employed or to be employed by the corporation and related to the
trustee by consanguinity or marriage;
(e) A
nondiscrimination provision stating that services will neither be rendered nor
denied on the basis of race, color, religion, national origin,
disability, genetic information,
military status, sexual orientation, or, unless programmatically justifiable,
age or sex; and
(f) A provision
stating that the corporation will not discriminate or otherwise decide any
matter regarding employment on the basis of race, color,
religion, national origin,
disability, genetic information,
military status, sexual orientation, age, or gender.
(G) If
an applicant is an approved tax credit manager,
the applicant is to also submit the following
information:
(1) Appropriate
documentation of the limited partnership (partnership agreement) or limited
liability company (articles of incorporation; operating agreement) and the role
that the approved tax credit manager plays in the development and operation of
the project. The documentation is to contain the
following provisions:
(a)
A provision stating that upon dissolution of the
limited partnership or limited liability company
(if such
dissolution occurs within the thirty year project period and another entity
satisfactory to the department has not assumed the obligations under the
mortgage to the department), the partnership
agreement or operating agreement will provide that all proceeds on dissolution
be used to pay creditors of the limited partnership or limited liability
company, including any payment of amounts from the sale of the project to pay
the obligations secured by any mortgage to the department, prior to
distribution to any member or partner thereof.
(b) A provision stating that, if the approved tax credit manager
should default in any term of the partnership or operating agreement, upon
notice to the applicant and the department, the applicant and the department
will
have a sixty-day period to cure such default. Additionally, at the option of
the department, and in the case where the department determines that the
applicant has failed to provide the services as set forth in the application,
unless otherwise agreed to in writing by the department, the department may
cause the management and operation of the facility to be assigned to a party
eligible to be an applicant or to the department, provided such assignment is
agreeable to the approved tax credit owner, which agreement
is not
to be unreasonably withheld. Any such successor
manager or operator of the facility
will assume all of applicant's obligations under
the contract and note and
will comply with all federal or state obligations
and restrictions applicable to the facility.
(2)
Appropriate documentation that the limited partnership or limited liability
company is eligible to participate in the Ohio housing finance agency's housing
tax credit program.