SECTIONS 129225-129260 - California Statutes

HEALTH AND SAFETY CODE

SECTION 129225-129260

129225. This article shall be known as, and may be cited as, the
Community Mental Health Facilities Loan Insurance Law.

129230. It is the intent of the Legislature in enacting this
article to encourage the development of facilities for
community-based programs that assist mental health clients living in
any institutional setting, including state and local inpatient
hospitals, skilled nursing homes, intermediate care facilities, and
community care facilities to move to more independent living
arrangements. It is further the intent of the Legislature to
encourage local programs to seek funding for facility development
from private sources and with the assistance provided pursuant to
this chapter.
To achieve this purpose in determining eligibility for loan
insurance pursuant to this chapter, the following special provisions
apply to facilities approved in the county Short-Doyle plan and
meeting the intentions of this article:
(a) Facilities shall not require approval pursuant to Section
129295 by the statewide system of health facility planning, the area
health planning agency, or the Health Advisory Council, for the
issuance of loan insurance, unless specifically required for the
facilities by the facility category of licensure.
(b) Notwithstanding subdivision (i) of Section 129050, any loan of
under three hundred thousand dollars ($300,000) for a nonprofit
corporation as well as a political subdivision may be fully insured
equal to the total construction cost, except a loan to any
proprietary corporation that is insured pursuant to subdivision (d)
of this section.
(c) The State Department of Mental Health or the local mental
health program may provide all application fees, inspection fees,
premiums and other administrative payments required by this chapter,
except with respect to any loan to a proprietary corporation that is
insured pursuant to subdivision (d) of this section.
(d) The borrower may be a proprietary corporation, provided that
the facility is leased to the local mental health program for the
duration of the insurance agreement. In these instances, all
provisions in this chapter and this article that apply to a nonprofit
corporation shall apply to the proprietary corporation, except as
provided in subdivisions (b) and (c) of this section.
(e) For the purposes of this article, subdivision (c) of Section
129010 shall include the purchase of existing buildings.
(f) Facilities shall not require approval pursuant to Section
129020 by the statewide system of health facility planning, the area
health planning agency, or the Health Advisory Council, for the
issuance of loan insurance, until the director of the office and the
Director of the Department of Mental Health determine that the state
plan developed pursuant to Section 129020 adequately and
comprehensively addresses the need for community mental health
facilities and that finding is reported to the appropriate policy
committees of the Legislature.

129235. Loans of under three hundred thousand dollars ($300,000)
for any single facility shall have priority for obtaining loan
insurance under the special provisions established pursuant to
Section 129230.

129240. The total amount of loans that may be insured pursuant to
this article shall not exceed fifteen million dollars ($15,000,000).

129245. No loan insurance shall be provided pursuant to this
article for the purpose of providing psychiatric inpatient services
in an acute psychiatric hospital or a general acute care hospital.

129250. The Legislative Analyst shall review and comment on the
utilization and effectiveness of this article in the annual budget
analysis and in hearings.

129255. If, in construing Article 6 (commencing with Section
129225) of this chapter as applied to the other provisions of this
chapter, any conflict arises, this article shall prevail over the
other provisions of this chapter.

129260. If any provision of this article or the application thereof
to any person or circumstances is held invalid, that invalidity
shall not affect other provisions or applications of this article
that can be given effect without the invalid provision or
application, and to this end the provisions of this act are
severable.