HomeMy WebLinkAboutAgreement A-24-189 with HORNE LLP.PDF PROGRAM FUNDING AGREEMENT
COMMUNITY CARE EXPANSION PRESERVATION PROJECTS
SUMMARY COVER SHEET
Program Funding
Agreement ID
Program Agreement April 23 12024
Effective Date:
Program Funding HORNE LLP (Horne)
Agreement Manager: 661 Sunnybrook Rd., Suite 100, Ridgeland, MS 39157
Tel: 916.398.4797
Horne Contracting Officer: Anna Stroble
Anna.Stroble(a�horne.com
Horne Project Director: Geoffrey Ross
Geoffrey.Rossghorne.com
Horne Direct Staff Contact: Dania Khan
Dania.Khanghorne.com
County: County of Fresno ("County")
ATTN: Susan Holt, Director, Department of Behavioral Health
Address: 1925 E. Dakota Avenue, Fresno, CA 93726
Email Address: sholt@fresnocountyca.gov
Prime Contract California Department of Social Services
Identification: Agreement No.: 22-3100
Contract Title: Community Care Expansion Preservation Program
Contract Type: Deliverable Based Type Contract
Base Period of Operating Subsidy Payment funds: Effective Date of Agreement
Performance: through June 30, 2029
Capital Project Funds: Effective Date of Agreement through
December 31, 2026
Consideration/Budget: Facility Preservation and Renovation Not to Exceed: $2,351,591.00
for Operating Subsidy Payment funds; $3,111,750.00 for Capital
Project funds
Program Funding Agreement Cover Sheet
(This Page is not part of the Program Funding Agreement
and is for Summary/Reference Purposes Only)
4138-4495-8536.2
Agreement No. 24-189
This Program Funding Agreement (the "Agreement") is entered into April 23 , 2024 (the
"Effective Date"), by and between HORNE LLP, a Delaware limited liability company, with
offices located at 661 Sunnybrook Rd., Suite 100,Ridgeland,MS 39157 ("Horne"), and
County of Fresno, a political subdivision of the State acting through its Department of
Behavioral Health(Designated Department for Administration of Program) with offices at 1925
E.Dakota Avenue, Fresno, CA 93726 ("Fresno" or"County"). Horne and County may be
referred to separately as a"Parry" or collectively as "Parties."
RECITALS
1. Horne entered into an agreement with the State of California (the "State") through
the California Department of Social Services ("CDSS") to facilitate program
funding awards and provide services to CDSS as the third-party administrator of
the CDSS Community Care Expansion Preservation Program("Program"). The
agreement between CDSS and Horne shall hereinafter be referred to as the "Prime
Contract" or"CDSS Contract";
2. The purpose of the Program is to preserve and avoid the closure of licensed
residential adult and senior care facilities that serve applicants and recipients of
Supplemental Security Income/State Supplementary Payment and Cash
Assistance Program for Immigrants ("Qualified Residents"), with a priority for
individuals experiencing or at risk of homelessness ("Prioritized Population");
3. Pursuant to the requirements of the Program and CDSS guidelines, counties are to
use their allocation of program funds to preserve the capacity of eligible
residential adult and senior care settings as well as increase the acceptance of new
Qualified Residents by providing operating subsidy payments ("Operating
Subsidy Payments" or"OSP") and funding capital projects addressing critical
repairs, required upgrades, and ensuring that facilities are compliant with
licensing standards ("Capital Projects"), with the goal of preventing closures and
preserving beds in existing licensed facilities;
4. In response to that certain Notice of Funding Availability issued by Horne on
behalf of CDSS on or about June 10, 2022 (the "NOFA") for the Program, and the
All County Welfare Directors Letter("ACWDL") dated December 14, 2022
(collectively referred to as "Funding Letters"), County elected to receive its
noncompetitive allocation of$5,463,341.00 for the purpose of funding Operating
Subsidy Payments and/or Capital Projects ("Program Funds") and has submitted
to Horne an Implementation Plan ("Implementation Plan") for the administration
and disbursement of the Program Funds to existing licensed adult and senior care
facilities serving Qualified Residents; and;
5. This Agreement sets forth the terms and conditions of Home's administration and
management of the Program Funds and County's duties and obligations related to
its receipt of Program Funds. Capitalized terms not defined herein shall have the
meanings ascribed thereto in the California Welfare and Institutions Code
sections 18999.97— 18999.98.
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NOW, THEREFORE, based upon the foregoing, and in consideration of the mutual
covenants and agreements herein set forth, the Parties agree as follows:
ARTICLE 1.
AUTHORITY
California Assembly Bill 172 (Chapter 696, Statutes of 2021) ("AB 172") added
sections 18999.97-18999.98 to the Welfare and Institutions Code, providing the statutory basis
for the Program and California Senate Bill 129 (Chapter 69, Statutes of 2021), the Budget Act of
2021, and California Assembly Bill 178 (Chapter 45, Statutes of 2022), Budget Act of 2022,
provide the funding for the Program. CDSS issued the Funding Letters and Horne publishes
Funding Letters on behalf of CDSS and provides technical assistance, general training and
support to counties on administration, disbursement and monitoring of the Program Funds, as
well as administration and fund management to CDSS.
This Agreement is entered under the authority of and in furtherance of the Program. This
Agreement is the result of the County's election to accept its allocation of Program Funds and
County's submission of an Implementation Plan which is subject to Horne and CDSS review and
approval.
This Agreement hereby incorporates by reference County's approved Implementation Plan, as
well as any report prepared by Horne in reliance on the representations and descriptions included
in that Implementation Plan. This Agreement is governed by the following(collectively, the
"Program Requirements"), and each of the following, as amended and in effect from time to
time, is hereby incorporated by this reference as if set forth herein in full:
1.1 AB 172 (Chapter 696, Statutes of 2021), including any subsequent amendments to
the statutes contained therein;
1.2 California Welfare and Institutions Code sections 18999.97— 18999.98;
1.3 The NOFA, in the form attached to this Agreement as Attachment D issued on
our about June 10, 2022; and the ACWDL dated December 14, 2022;
1.4 Guidance issued by CDSS regarding the Program;
1.5 Program Guidelines, or Program Manuals, as adopted by CDSS, and as may be
amended from time to time;
1.6 The award letter(s) issued by Horne to County ("Award Letter") attached to this
Agreement as Attachment E; and
1.7 All other applicable law, including, but not limited to, California Labor Code
statutes applicable to public works projects.
County is solely responsible and liable for County and County's subcontractors' performance
and compliance with this Agreement, the above-referenced Program Requirements, and all other
local, state, and federal laws applicable to the Project. For any provision within the Agreement
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where a County uses a subcontractor to meet or partially meet the requirements, duties, or
obligations of the provision, the term"County," if used in the provision, includes the
subcontractor, as applicable.
ARTICLE 2.
TERM
2.1 This Agreement shall commence on the Effective Date and shall expire
automatically on June 30, 2029 (the "Expiration Date"), which Expiration Date
may be extended by Horne or CDSS. The period from the Effective Date through
the Expiration Date shall be referred to herein as the "Term", unless earlier
terminated by Horne or CDSS or assigned to CDSS pursuant to Section 2.3
below.
2.2 Upon the expiration of the Term, there shall be no extension or renewal of the
Term of this Agreement, unless the Parties and CDSS otherwise agree in writing.
2.3 In the event that the Term of this Agreement is not extended, renewed, or
terminated early, and either Party hereto shall have a material obligation to the
other Party by the terms of this Agreement, which shall not be satisfied on or
before the Expiration Date, all of Home's rights and obligations under this
Agreement shall be assigned to CDSS, if directed by CDSS, effective June 29,
2029, at 11:59 p.m Pacific time. Each of the Parties hereto acknowledges and
agrees that upon the occurrence of an assignment pursuant to this Section 2.3,
such an assignment shall be effective without any further action by either Party
hereto, or CDSS, and from and after the date of such an assignment: (i) CDSS
shall be a Party to this Agreement and shall have all rights and obligations of
Horne hereunder, and(ii) Horne shall cease to be a Party to this Agreement and
shall be released from its obligations hereunder. Upon the occurrence of such
assignment, the Term of this Agreement shall be extended automatically for a
period of one (1) year and shall expire without any further action by either County
or CDSS, unless County and CDSS otherwise agree in writing.
2.4 In the event that the Prime Contract is terminated or amended in a manner
removing Horne from responsibility as a Party to this Agreement, and either Party
hereto shall have a remaining obligation to the other Party by the terms of this
Agreement, which shall not be satisfied on or before the Expiration Date, all of
Home's right and obligations under this Agreement shall be assigned
automatically to CDSS effective upon the date of the termination or amendment.
2.5 Notwithstanding the foregoing or anything to the contrary contained herein,
Horne and/or CDSS shall have the termination rights as set forth in Article 7, and
Article 8, of this Agreement.
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ARTICLE 3.
PROGRAM FUNDS AND DISBURSEMENT
3.1 Purpose. The County has been awarded the Program Funds in the amount set
forth in this Agreement to be used solely for the purposes set forth in this
Agreement and as detailed in the Implementation Plan and for no other purposes.
The County shall be responsible for administering and disbursing the Program
Funds for purposes that are consistent with the Program Requirements. The
County may disburse Program Funds to Eligible Recipients (as defined below) for
OSP and/or for Capital Projects. Program Funds awarded for OSP may not be
commingled with Program Funds awarded for Capital Projects, and vice versa.
The County is obligated to develop an application, allocation methodology and
award process for Eligible Recipients consistent with the terms of this Agreement.
Program Funds shall be disbursed only upon satisfaction of the requirements of
this section.
3.2 Conditions of Disbursement. Within thirty(30) calendar days of the delivery to
Horne of a fully executed Agreement, Horne shall disburse to the County twenty-
five percent(25%) of the total amount of Program Funds awarded to the County
("Advance Disbursement"), which funds are to be used by the County in
accordance with this Agreement. County shall submit proof of expenditures
applied against the Advance Disbursement no later than(30) days after the end of
each calendar quarter. In no event shall further Program Fund disbursements be
made by Horne to County until after the Advance Disbursement has been
exhausted and County has provided proof of expenditures applied against the
Advance Disbursement. Such proof of expenditures shall be in a form approved
by Horne and shall include any documentation requested by Horne to evidence
the County's expenditures of funds, consistent with the terms of this Agreement.
After the Advance Disbursement has been exhausted, disbursements shall be
made by written request in a form approved by Horne and shall include any
documentation requested by Horne to evidence the County's expenditures of
funds, including Match Funds as described in Section 5.6, consistent with the
terms of this Agreement("Disbursement Request").
Disbursements are subject to the following:
3.2.1 County shall submit Disbursement Requests no more than once per
calendar quarter, unless additional Disbursement Requests are permitted
pursuant to section 3.2.4.
3.2.2 Disbursement Requests shall be submitted no earlier than the last day of
each calendar quarter and no later than thirty(30) days following the last
day of each calendar quarter.
3.2.3 Program Funds will be disbursed to the County for costs incurred for the
Project within thirty(30) days of receipt of a complete Disbursement
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Request for Program Funds,provided such Disbursement Request is
approved by Horne or its designee.
3.2.4 Other than the Advance Disbursement, all disbursements shall be based on
actual expenditures incurred by the County. The County may submit
requests for additional advance disbursements upon providing to Horne
evidence of good cause for the additional advance disbursement, and
Horne shall provide said request to CDSS for approval. Any approval or
disapproval of a disbursement request for an advance disbursement is
within the sole discretion of CDSS. In no event shall the balance of
advance disbursements exceed 25% of the total Program Fund amount.
3.2.5 Disbursement Requests shall identify the purpose of the use of funds,
whether for OSP or Capital Projects or both, and shall delineate items
allocated to OSP or Capital Projects, if applicable.
3.2.6 Within ninety(90) days of the final Disbursement Request, the County
shall provide Horne with(i) a reconciliation showing all expenditures
made with Program Funds, including those made with the Advance
Disbursement, (ii) documentation of the expenditure of all Match Funds,
and(iii) any documentation or evidence requested by Horne to support
such expenditures.
3.3 Documentation of Match Funds. Match Funds contributed pursuant to Article 5,
Section 5.6 of this Agreement shall be reported with each Disbursement Request.
In the event the Match Funds are an in-kind contribution in lieu of cash, including
Project expenses incurred prior to the Effective Date (the "Sunk Costs"), the value
of such in-kind contribution must be approved by Horne. All Match Funds must
be expended prior to submitting the final Disbursement Request.
3.4 Disbursement of Program Funds to Eligible Recipients. The County shall be
responsible for disbursement of Program Funds to Eligible Recipients. The
County shall follow its standard procurement, invoicing, and reimbursement
processes for the disbursement of Program Funds, consistent with the terms and
conditions of this Agreement.
3.5 Additional Considerations for Program Funds Used For Capital Projects. The
County shall be responsible for ensuring that Eligible Recipients comply with all
construction requirements, including that Eligible Recipients comply with
California Prevailing Wage laws (California Labor Code section 1720 et seq.), all
permitting requirements of the local jurisdiction and any other governmental or
Program Requirements. The County shall require that all facilities receiving
Program Funds for Capital Projects undertaking a construction project costing
more than One Million Dollars ($1,000,0000) shall obtain payment and
performance bonds. Any exception to the requirement to obtain payment and
performance bonds must be approved by Horne or CDSS.
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ARTICLE 4.
ELIGIBLE RECIPIENTS AND EXPENDITURES
The County shall disburse Program Funds to Eligible Recipients for the uses set forth below. In
awarding Program Funds, the County shall prioritize facilities with the highest risk of closure
and facilities with the highest percentage of Qualified Residents.
4.1 Eligible Recipients. Program Funds shall only be disbursed by the County to
facilities meeting all of the following eligibility criteria("Eligible Recipients"):
4.1.1 An existing licensed Adult Residential Facility as defined in Title 22,
section 80001(a)(5) of the California Code of Regulations; Residential
Care Facility for the Elderly, as defined in 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.
4.1.2 Currently serving at least one Qualified Resident.
4.1.3 In good standing with the Community Care Licensing Division or, if the
facility is not in good standing, providing a certification that the Program
Funds will bring the facility into good standing.
4.1.4 Has agreed to continue to serve Qualified Residents.
4.1.5 Has agreed to prioritize applications from Qualified Residents who are
part of the Prioritized Population.
4.1.6 Has agreed to remain in good standing with Community Care Licensing
Division.
4.1.7 Has agreed to use the Program Funds disbursed for the uses set forth
below in Section 4.3 if Program Funds are used for OSP or Section 4.5 if
the Program Funds are used for Capital Projects.
4.2 Additional Criteria for Eligible Recipients of OSP. In addition to the criteria for
Eligible Recipients set forth in Section 4.1, recipients of Program Funds for OSP
must also meet the following criteria:
4.2.1 Have a monthly or annual operating cash flow gap that places the facility
at risk of closure or risk of reducing the number of beds for Qualified
Residents.
4.2.2 Have recorded a deed restriction on the facility or property requiring that
the facility continue to provide licensed adult and senior residential care
for a minimum duration equal to at least the term of the agreement
between the County and Eligible Recipients to fund the OSP.
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4.2.3 The duration of the agreement between the County and Eligible Recipients
to fund the OSP is the period of time in which the County will be
providing Program Funds for OSP to any Eligible Recipients within the
County.
4.3 Eligible and Ineligible Uses of Program Funds for OSP. Program Funds used for
OSP may be used to cover operating costs associated with the day-to-day physical
operation of the Eligible Recipient's facility related to the Qualified Residents,
including covering costs of utilities, maintenance and repair, staff and payroll
costs, marketing, leasing, taxes and insurance, office supplies, accounting, and
strategic planning. Examples of eligible uses are set forth in section 205 of the
NOFA. Program Funds used for OSP may not supplant other funding awarded or
otherwise dedicated 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 that
are not related to operations, distributions to the facility owners, to pay tort claim
liabilities, or to pay costs associated with a change of ownership. The County
shall be responsible for ensuring that Program Funds are used for eligible
purposes consistent with the Program Requirements and this Agreement.
4.4 Additional Criteria for Capital Project Eligible Recipients. In addition to the
criteria for Eligible Recipients set forth in Section 4.1, recipients of Program
Funds for Capital Projects must also meet the following criteria:
4.4.1 Have a gap in their financial ability to make needed repairs or upgrades,
placing the facility at risk of closure or reducing the number of beds
available for Qualified Residents.
4.5 Eligible and Ineligible Uses of Program Funds for Capital Projects. Program
Funds used for Capital Projects are to be used for physical repairs and upgrades to
an Eligible Recipient's facility, inside or outside the facility within the property
line of the facility. Examples of eligible uses are set forth in section 205 of the
NOFA. Program Funds used for Capital Projects may not supplant any existing
funds used to support the prioritized population. Program Funds for Capital
Projects shall not be used for repairs to foundations of leased facilities, projects
that would expand or create new usable space, the provision of services, or for
operating costs.
ARTICLE 5.
PROGRAM IMPLEMENTATION REQUIREMENTS
5.1 The County is responsible for the administration, disbursement, and monitoring of
the Program Funds in accordance with the terms of this Agreement and the
Program Requirements. Implementation requirements include the requirements in
Sections 5.2-5.7.
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5.2 Application Process. The County shall establish an application process for
Eligible Recipients that addresses the Program priorities and goals. The
application and funding selection process shall assess Eligible Recipients'
financial capacity, and ability to adhere to the Program Guidelines, including
ensuring that Eligible Recipients have sufficient staff capacity and financial
resources to manage the facility. The County funding shall be distributed
geographically throughout the County to the extent feasible.
5.3 Monitoring. The County is responsible for monitoring use of Program Funds to
ensure that Program Funds are only used for eligible uses in a manner consistent
with the Program Guidelines. The County procedures must include a corrective
action plan for assessing the risk of activities,projects, and for monitoring
facilities to ensure that Program Requirements are met. The County is
responsible for taking appropriate action in the event that Eligible Recipients fail
to use the Program Funds for eligible uses or fail to perform. The County may
subcontract any of its obligations to a third party, but the County remains
responsible for the obligations in this Agreement.
5.4 OSP Agreements. The County shall enter into written agreements with Eligible
Recipients of Program Funds used for OSP, which at a minimum shall include
(i)the Eligible Recipient's reporting obligations; (ii) the requirement that the
Eligible Recipient respond to requests for information from Horne and CDSS;
(iii)the eligible uses of the Program Funds; (iv) the conditions under which
Program Funds will be disbursed; (v) the method of disbursement; (vi) a
requirement that the facility be deed restricted to provide licensed adult and senior
residential care for a minimum duration equal to the term of the agreement
between the County and the Eligible Recipient for the use of Program Funds for
OSP; (vii) conditions for the repayment of Program Funds or cancellation of
future disbursement of Program Funds; (viii) a requirement that the Eligible
Recipient provide an annual audit within ninety(90) days of the end of the fiscal
year, if applicable; (ix) a requirement to report material changes, such as changes
in key staff or litigation against the Eligible Recipient or the facility, within thirty
(30) days of such occurrence; (x) a requirement that the Eligible Recipient
indemnify the County; and(xi) such other provisions required by Horne or CDSS.
County may include other requirements in its the agreement with Eligible
Recipients of Program Funds used for OSP.
5.5 Capital Project Agreements. The County shall enter into written agreements with
Eligible Recipients of Program Funds for Capital Projects which at a minimum
shall include (i)the Eligible Recipients reporting responsibilities; (ii) the
requirement that the Eligible Recipient respond to requests for information from
Horne and CDSS; (iii) the allowed use of the Program Funds; (iv) the conditions
for disbursement of the Program Funds; (v) the method of disbursement for the
Program Funds; (vi) any procurement and bidding requirements, including, but
not limited to, requirements to pay prevailing wage pursuant to California Labor
Code section 1720 et seq.; (vii) conditions for repayment of the Program Funds or
the cancellation of future disbursements; (viii) a requirement that the Eligible
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Recipient provide an annual audit within ninety(90) days of the end of the fiscal
year, if applicable; (ix) a requirement to report material changes, such as changes
in key staff or litigation against the Eligible Recipient or the facility within thirty
(30) days of such occurrence; (x) a requirement that the Eligible Recipient
indemnify the County; (xi) if part of the County requirements, a requirement that
the Eligible Recipient enter into a deed restriction to provide licensed residential
care to Qualified Residents for a term determined by the County; and(xii) such
other provisions required by Horne or CDSS. County may include other
requirements in its agreement with Eligible Recipients of Program Funds used for
Capital Projects.
5.6 Capital Project Program Fund Match. The County is required to match at least
ten percent(10%) of the Program Funds for Capital Projects allocated to the
County(the"Match Funds"). The County shall provide evidence to Horne of the
contribution of Match Funds either in the form of cash or in-kind contributions as
outlined in Article 3. Match Funds may be from the County or provided by an
Eligible Recipient. In-kind Match Funds may be in the form of Sunk Costs
directly related to the Capital Project, or costs directly related to the Capital
Project that have already been incurred and cannot be recovered, and evidenced
with documentation of paid invoices for professional services related to
preconstruction of the specific Capital Project, as approved by Horne or CDSS on
a case-by-case basis. In-kind Match Funds may also include donations of
professional design-build services or materials directly related to the Capital
Project. Any Match Funds claimed under Sunk Costs must supplement, not
supplant, other fund sources. The provision of services and funds derived from
the State general fund cannot be used in satisfaction of the required contribution
of Match Funds.
5.7 Deed Restriction or Re ulatoryAgreement. The County must require Eligible
Recipients receiving Program Funds for OSP 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 between the County and Eligible Recipient for funding
OSP. The deed restriction must be recorded on the title to the property upon
which the facility is located before the County disburses any funds. If the Eligible
Recipient leases the facility or property, the deed restriction must be signed by
both the Eligible Recipient and the owner of the fee interest in the property and
recorded against both the fee interest in the property and the leasehold. The
County may, at its election, require deed restrictions for Capital Projects.
ARTICLE 6.
FISCAL ADMINISTRATION
6.1 The County shall be responsible for managing the Program Funds in compliance
with the Program Requirements. The County is responsible for ensuring that
Program Funds are used in accordance with the terms of this Agreement and the
Program Requirements. The County is not required to establish a separate
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account for Program Funds but must establish a separate fund and must monitor
all expenditures from the fund to ensure funds are only used for Program
purposes. All interest earned from Program Funds shall be used for purposes
consistent with the terms of this Agreement and segregated from other County
funds. Minimum requirements for the management of Program Funds include the
following:
6.1.1 The County,by signing this Agreement, attests that it has the capacity and
ability to manage the application, disbursement and monitoring of the
Program Funds required by this Agreement and the Program
Requirements.
6.1.2 The County shall include in its program requirements that all Eligible
Recipients are assessed for financial feasibility and ability to comply with
the Program Requirements.
6.1.3 The County shall comply with all disbursement procedures for the
Program Funds set forth in the County's Implementation Plan or as
otherwise approved by CDSS.
6.1.4 The County shall assign the necessary staff to monitor the use of Program
Funds, ensure adherence to the Program Requirements, and monitor
ongoing compliance with Program Requirements for the duration of any
deed restriction required by this Agreement or the Term of this
Agreement,whichever is longer, or required by the County.
6.1.5 The County shall ensure that recipients of Program Funds for Capital
Projects comply with State Labor Code section 1720 et seq. (State
Prevailing Wage).
6.1.6 The County shall comply with any reporting and record retention
requirements in the Program Requirements or this Agreement.
6.2 Any Program Funds that have been disbursed to the County but have not been
expended by the expiration of the Period of Performance set forth in the Summary
Cover Sheet must be returned to CDSS with accrued interest within thirty
(30) calendar days after the expiration of the Period of Performance in accordance
with directions provided by CDSS. County shall not be entitled to any
disbursement of Program Funds after expiration of the Period of Performance and
any such undisbursed funds will be retained by CDSS.
6.3 The County shall not expend more than fifteen percent (15%) of the Program
Funds on County administrative costs.
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ARTICLE 7.
DEFAULT AND REMEDIES
7.1 Event of Default. Any of the following, after notice to County by Horne or
CDSS, provided in accordance with the notice requirements of this Agreement,
and expiration of any applicable cure period, shall constitute an Event of Default
under this Agreement:
7.1.1 The County's failure to timely satisfy each or any of the conditions set
forth in this Agreement, or the Award Letter.
7.1.2 The County's violation of any of the Program Requirements.
7.1.3 Home's or CDSS's determination of the following:
7.1.3.1 The County has concealed any material fact from Horne or
CDSS related to the County or any Eligible Recipients; or
7.1.3.2 Any material fact or representation, made or furnished to Horne
or CDSS by the County in connection with this Agreement shall
have been untrue or misleading at the time that such fact or
representation was made known to Horne, or subsequently
becomes untrue or misleading; or
7.1.3.3 Any Certification provided by the County is determined to be
untrue or misleading.
7.1.3.4 Any objectives or requirements of the Program cannot be met in
accordance with this Agreement or within applicable
timeframes, as memorialized by this Agreement.
7.2 Right to Cure. If the breach, violation, or default pursuant to Section 7.1 is not
cured to Home's and CDSS' satisfaction, as determined by Horne and CDSS,
each in their sole and absolute discretion, within fourteen (14) days of notice to
the County, provided in accordance with the notice requirements of this
Agreement, then Horne, with CDSS approval, may declare an Event of Default
under this Agreement.
7.2.1 Notwithstanding the foregoing, the County may request additional time to
cure any default from Horne. Horne may,but shall not be required to,
grant any such request, subject to CDSS approval, in CDSS's sole
discretion. CDSS's approval of the County's request for additional time to
cure shall be subject to the County's continuing and diligent efforts to
cure, and any additional cure period provided to the County shall be
reasonable, as determined by CDSS, in CDSS's sole discretion. Horne,
shall provide notice to County of approval or denial of County's request
for additional time to cure any default.
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7.3 Horne/CDSS Remedies. Upon the occurrence of an Event of Default, Horne (on
CDSS's behalf) and/or the State (represented by CDSS in this Agreement) may
take any and all actions or remedies that are available under this Agreement, at
law, or in equity, including but not limited to the following:
7.3.1 temporarily withhold disbursement of Program Funds pending correction
of the breach, violation, or default;
7.3.2 disallow use of Program Funds for all or part of the costs resulting from
the breach, violation, or default;
7.3.3 wholly or partly suspend or terminate this Agreement and the County's
award of Program Funds, or disbursements thereof(any such suspension
or termination of this Agreement or the County's award of Program Funds
shall be effective upon the County's receipt of Horne or CDSS notice of
termination or suspension);
7.3.4 withhold or deny further Program Funds or awards to the County;
7.3.5 require the County to return all or part of any Program Funds including
any interest;
7.3.6 specific performance;
7.3.7 injunctive relief, and
7.3.8 any and all remedies allowed by law or equity.
ARTICLE 8.
TERMINATION
8.1 Horne and/or CDSS shall have the right, each in its sole discretion and without
prejudice to any other rights and remedies it may have under applicable law, to
terminate this Agreement immediately upon notice of such termination to the
County, if(i) an Event of Default occurs; (ii) three (3)violations,breaches or
defaults by the County of the terms and conditions of this Agreement(whether the
same or different) occur within any twelve-month period, regardless of whether
any or all such violations, breaches or defaults are timely corrected; (iii) the
County files a petition in bankruptcy or is adjudicated by a court of competent
jurisdiction to be bankrupt or insolvent, or makes an assignment for the benefit of
creditors or an arrangement pursuant to any bankruptcy law, or if the County
discontinues or dissolves its business or if a receiver is appointed for the County
or the County's business; or(iv) County fails to provide Horne with adequate
assurances within a reasonable time that County is financially solvent, or Horne
or CDSS determines that County is financially insecure.
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8.2 Notwithstanding the foregoing, or anything to the contrary stated herein, Horne
may terminate this Agreement upon thirty(30) days' notice if Horne is directed
by CDSS to terminate this Agreement.
8.3 Upon termination of this Agreement for any reason, neither Horne nor CDSS
shall be liable for any work that is not performed in accordance with the
Agreement or for any commitments made by the County to any Eligible
Recipient. Upon any termination, neither Horne nor CDSS shall be responsible
for any additional disbursements of Program Funds after the termination date or
for any damages to the County as a result of such termination. Upon termination,
County shall cease to disburse Program Funds to Eligible Recipients and shall
return all Program Funds to the State at the direction of Horne or CDSS.
ARTICLE 9.
POLICIES AND LEGAL AUTHORITIES
9.1 The County shall comply with all California and federal law, regulations, and
published guidelines, to the extent that these authorities contain requirements
applicable to the County's performance under this Agreement, including any
licensing and health and safety requirements.
9.2 The County shall comply with California Welfare and Institutions Code
sections 18999.97— 18999.98 et seq., including any related CDSS guidance,
regulations, and/or subsequent additions or amendments thereto.
9.3 In the event the County does not comply with the terms of this Article 9, Horne
shall give notice in accordance with Section 15.7 and shall have all rights set forth
in Article 7 and Article 8.
ARTICLE 10.
INDEMNIFICATION
10.1 The County shall indemnify, defend, and hold harmless Horne, its officers,
employees and agents, and CDSS and its officers, employees and agents, against
liabilities to third persons and other losses (not compensated by insurance or
otherwise) and for any costs and expenses incurred by Horne and CDSS,
including reasonable attorneys' fees,judgments, settlements or penalties against
all liabilities, claims, suits, demands or liens for damages to persons or property
(collectively"Claims") (unless such Claims arise from the gross negligence or
willful misconduct of Horne or CDSS), arising out of, resulting from, or relating
to, County's performance under this Agreement and including, but not limited to,
the following:
10.1.1 Any act, omission, or statement of the County, or any person employed by
or engaged under contract with the County, that results in injury(including
death), loss, or damage to any person or property;
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10.1.2 Any failure on the part of the County to comply with applicable Program
Requirements and requirements of law;
10.1.3 Any act or omission of any Eligible Recipient, including but not limited to
any failure of any Eligible Recipient to comply with the Program
Requirements and the terms of this Agreement;
10.1.4 Any failure on the part of the County or an Eligible Recipient to satisfy all
claims for labor, equipment, materials and other obligations relating to the
performance of the work hereunder;
10.1.5 Any injury to property or person occurring on or about the infrastructure
or the property of the County or any Eligible Recipient; or
10.1.6 Any claims related to the use, generation, storage, release, threatened
release, discharge, disposal or presence of hazardous materials on,under
or about the property upon which any facility funded with Program Funds
is located.
10.2 The County shall indemnify Horne and/or CDSS under this clause for any of the
above acts attributable to its employees, consultants, agents, lower-tiered
subcontractors, or Eligible Recipients, in connection with this Agreement. Horne
or CDSS shall provide timely notice of any Claims describing in reasonable detail
such facts and circumstances with respect to such Claims. The County shall
defend Horne and/or CDSS with counsel reasonably acceptable to Horne and/or
CDSS. Horne and/or CDSS may, each, at its option and own expense, engage
separate counsel to advise regarding the Claim and its defense. Such counsel may
attend all proceedings and meetings. The County shall not settle any Claim
without the consent of Horne and/or CDSS, as applicable.
10.3 The County agrees to indemnify, defend and hold harmless Horne, its officers,
agents and employees and CDSS, its officers, agents and employees from any and
all claims, costs (including, but not limited to, all legal expenses, court costs, and
attorney's fees incurred in investigating, preparing, serving as a witness in, or
defending against, any such claim, action, or proceeding, commenced or
threatened), and losses accruing or resulting to any and all contractors,
subcontractors, suppliers, laborers, and any other person, firm or corporation
furnishing or supplying work services, materials, or supplies in connection with
the performance of this Agreement, and from any and all claims and losses
accruing or resulting to any person, firm or corporation who may be injured or
damaged by the County in connection with this Agreement.
10.4 This indemnification shall survive the expiration or termination of the Agreement.
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ARTICLE 11.
PREVAILING WAGE
Any construction work that is funded with Program Funds is subject to state prevailing wage
law, including California Labor Code section 1720 et seq. The County is responsible for
ensuring that all Eligible Recipients comply with Prevailing Wage law as well as any other
applicable federal or state labor requirements.
ARTICLE 12.
RELOCATION.
The County is responsible for ensuring that all Eligible Recipients comply with applicable
relocation laws, including Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970 (42 U.S.C. section 4601 et seq.), the California Relocation Assistance Law
(California Government Code section 7260 et seq.) and their implementing regulations
("Relocation Laws"), if any Program Funds will be used for projects that will result in the
displacement, as that term is defined in the Relocation Laws, of any persons, businesses, or farm
operations. Pursuant to the Relocation Laws and guidance provided by CDSS, the County is
responsible for ensuring that an Eligible Recipient (i) has a relocation plan prior to proceeding
with any phase of a project or other activity that will result in the displacement of persons,
businesses, or farm operations; and(ii) provides any required notices and relocation benefits.
The County is also responsible for ensuring compliance with California Health & Safety Code
and corresponding regulations for the safe transfer and relocation of residents in residential care
facilities licensed by CDSS, and ensuring that Eligible Recipients obtain CDSS's approval of a
relocation plan for each resident in care in a manner specified by CDSS.
ARTICLE 13.
INSPECTIONS,AUDITS,AND RECORD RETENTION
13.1 Horne and CDSS and any of their authorized representatives shall have the right
to access any documents, papers, or other records of the County and any Eligible
Recipients which are pertinent to the Program Funds, for the purpose of
performing audits, examinations, and/or review regarding compliance with the
provisions of this Agreement and the Program Requirements. Such monitoring
activities shall include,but are not limited to, inspection of the County and
Eligible Recipient's books and records, in addition to site inspections, as Horne or
CDSS deems appropriate.
13.2 Horne and CDSS and any of their authorized representatives may perform
compliance reviews and review procedures and documents pertaining to the
County's compliance with the terms of this Agreement and Eligible Recipient's
compliance with the Program Requirements,perform onsite visits and desk
reviews in order to ensure Program Funds are expended for eligible uses and to
protect against fraud, waste and abuse. The County shall include in all
agreements with its subcontractors and Eligible Recipients, a requirement that
they; (i)provide to Horne, and its authorized representatives, and CDSS and its
Page 15 of 22 Program Funding Agreement—CCE Preservation Projects
4138-4495-8536.2
authorized representatives access to their records and facilities; and(ii) cooperate
with any desk reviews.
13.3 The right to access records also includes timely and reasonable access to the
County's and the Eligible Recipient's personnel for the purpose of interview and
discussion related to the requested documents and/or information.
13.4 The right to access records is not limited to the required retention period but lasts
as long as the records are retained by County and the Eligible Recipient.
13.5 The County shall retain all financial records, supporting documents, statistical
records, and all other records pertinent to the Program Funds for the term of this
Agreement and for a minimum of three (3) years thereafter, and require that all
Eligible Recipients retain all records related to the Program Funds for the same
period.
13.6 The County shall, and shall ensure that each of its subcontractors and Eligible
Recipients complies with the requirements set forth in Attachment C—The
California Department of Social Services Confidentiality and Information
Security Requirements.
13.7 Any review or inspection undertaken by Horne, its designee, or CDSS, or its
designee, of the County's records or of any Eligible Recipient's records or facility
is solely for the purpose of determining whether the County or the Eligible
Recipient is properly discharging its obligations to CDSS, and should not be
relied upon by the County or by any third parties as a warranty or representation
by Horne or CDSS as to the quality of the design, construction, or operation of
any project. The County agrees that claims based upon an audit finding and/or an
audit finding that is appealed and upheld shall be recovered by Horne or CDSS by
one of the following options:
13.7.1 The County's remittance to Horne or CDSS of the full amount of the audit
exception within thirty(30) days following Horne request for payment; or
13.7.2 A repayment schedule which is agreeable to Horne, CDSS and County.
Horne reserves the right to select which option described above shall be employed; and Horne
shall notify the County in writing of the claim procedure to be utilized. Interest on the unpaid
balance of the audit finding or debt shall accrue at a rate equal to the maximum allowed by
applicable law.
13.8 Reporting Requirements. The County shall provide Horne and CDSS with the
following reports:
13.8.1 Initial quarterly reports shall be submitted within thirty(30) days of the
end of each quarter. Updated quarterly reports reflecting any changes or
corrections shall be submitted as soon as is practicable following the
initial quarterly report.
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13.8.2 An annual Program Fund Expenditure Report to be submitted not later
than January 31 st of each year for the prior calendar year.
13.8.3 A final report to be submitted no later than sixty(60) days after the final
disbursement of Program Funds to Eligible Recipients.
All reports shall be in a form and contain such information as required by CDSS
in its sole and absolute discretion. In addition to the above reporting
requirements, Horne and CDSS may request additional reports and information
necessary for Horne and CDSS to monitor compliance with the Program
Requirements. The County shall be responsible for obtaining any necessary
reporting information from its subcontractors and Eligible Recipients.
ARTICLE 14.
THIRD PARTY BENEFICIARIES.
The State, represented by CDSS in this Agreement, is a third party beneficiary of this
Agreement. This Agreement shall not be construed so as to give any other person or entity, other
than the Parties and CDSS, any legal or equitable claim or right. CDSS or another authorized
department or agency representing the State of California may enforce any provision of this
Agreement to the full extent permitted in law or equity as a third party beneficiary of this
Agreement. The State may take any and all remedies available in law and equity. In the event of
litigation, the State may choose to seek any type of damages available in law or equity,up to the
full amount of Program Funds awarded to the County. The County shall name Horne and CDSS
as third party beneficiaries with rights of enforcement in all agreements entered into by the
County with Eligible Recipients.
ARTICLE 15.
MISCELLANEOUS.
15.1 Dispute Resolution:
15.1.1 The Parties shall use reasonable efforts to resolve any dispute arising
under this Agreement within thirty(30) days pursuant to informal
mediation before a retired judge with Judicial Arbitration and Mediation
Services ("JAMS") in Los Angeles, California.
15.1.2 If the Parties cannot resolve a dispute arising under this Agreement
pursuant to Section 15.1.1, the Parties shall submit such dispute to
arbitration in accordance with the provisions of the American Arbitration
Association. The Parties shall conduct any arbitration in Los Angeles,
California. The arbitrator's decision in any such arbitration shall be final,
conclusive, and binding on the Parties.
15.1.3 TO THE FULLEST EXTENT PERMITTED BY LAW, THE PARTIES
HEREBY UNCONDITIONALLY WAIVE ANY RIGHT TO A JURY
TRIAL IN CONNECTION WITH ANY CLAIM ARISING OUT OF
THIS AGREEMENT.
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4138-4495-8536.2
15.1.4 The County shall be obligated to continue to perform pursuant to this
Agreement while any dispute is pending.
15.1.5 This Section 15.1 shall not apply to the State.
15.2 Attorneys' Fees. If a dispute arising out of this Agreement is finally adjudicated,
the non-prevailing party shall pay the prevailing party's reasonable expenses
incurred in connection therewith, including reasonable arbitration costs and
reasonable attorneys' fees. If multiple items are disputed and the final decision is
split, then the Parties shall allocate such expenses pro rata as to each item.
Section 15.2 does not apply to the State.
15.3 Waiver. Home's failure to notify the County of a breach or to insist on strict
performance of any provision of this Agreement shall not constitute waiver of
such breach or provision.
15.4 Remedies. No remedy in this Agreement is exclusive of any other remedy
available under this Agreement, at law or in equity. Horne or CDSS may seek
equitable relief, including an injunction, against the County in connection with
any breach or threatened breach of this Agreement.
15.5 Limitation of Liability. Except as otherwise provided in this Agreement, or by
applicable law, the County waives any right to seek, and Horne and CDSS shall
not be liable for, any special, consequential, or punitive damages; indirect, or
incidental damages; or for any loss of goodwill,profits, data, or loss of use arising
out of, resulting from, or in any way connected with the performance or breach of
this Agreement, even if the County advises Horne or CDSS of the possibility of
any such damages.
15.6 Relationship. The County is an independent contractor with respect to Horne.
This Agreement is not intended to create a partnership,joint venture,
employment, or fiduciary relationship between the Parties or between any Party
hereto and CDSS.
15.7 Notices. Notices under this Agreement must be (i) in writing; (ii) addressed to the
receiving Party at the address described in the Summary Cover Sheet(unless
notice of a different address is given); and(iii) (A) if personally delivered to the
recipient, notice is effective upon delivery, (B) if sent by a nationally recognized
overnight courier service, notice is effective on the first business day following its
timely deposit with such courier service, delivery fees for next business day
delivery prepaid; no signature affirming receipt by the receiving party is required,
the internal records of the courier service shall be accepted as sufficient evidence
of the date of the deposit of the notice with the courier service, or(C) if sent by
certified U.S. mail, notice is effective three (3) days after deposit thereof in the
U.S. mail, postage prepaid, certified, return receipt requested. Counsel for a Party
may send notice on behalf of its client.
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4138-4495-8536.2
15.7.1 Notwithstanding the foregoing, the Parties may deliver any approval,
disapproval, or request therefor via email. Such email notices and
deliveries shall be valid and binding on the Parties, subject to the
following:
15.7.1.1 Such email must be properly addressed to the other Party's
Designated Representatives. For purposes of this Agreement,
"Designated Representative"means initially(i) for Horne,
Geoffrey Ross, Geoffrey.Rossghome.com, and Dania Khan,
Dania.Khankhorne.com; and(ii) for the County, Susan Holt
sholtgfresnocountyca.gov and
dbhcontractedservicesdivision(i,fresnocountyca.gov. A Party
may change a Designated Representative only upon notice to
the other Party pursuant to the requirements of
Section 15.7(iii) (A), (B) or(C).
15.7.1.2 If the sender receives a bounce-back, out-of-office or other
automated response indicating non-receipt, the sender shall
(i)re-attempt delivery until the other Party confirms receipt, or
(ii) deliver the item in accordance with Section 15.7(iii) (A), (B)
or(C).
15.8 Governing Law. The place of performance of this Agreement is California and
the laws of the State of California, shall govern the validity, performance,
enforcement, and interpretation of this Agreement. Any litigation or enforcement
of an award must be brought in the appropriate state or federal court in the State
of California, County of Sacramento. Each Party consents to personal and subject
matter jurisdiction and venue in such courts and waives the right to change venue
with respect to any such proceeding. The Parties acknowledge that all directions
issued by the forum court, including injunction and other decrees, shall be binding
and enforceable in all jurisdictions and countries.
15.9 Assignment. The County shall not assign, delegate, or otherwise transfer this
Agreement, or its duties, or obligations in connection therewith, in whole or in
part without the prior approval of Horne and CDSS. Home's obligations under
this Agreement shall be assignable to CDSS or CDSS's designee upon CDSS's
request without the County's consent. In the event that Horne assigns its
obligations under this Agreement to CDSS, Horne shall make commercially
reasonable efforts to transition any reasonably necessary documentation related to
this Agreement to CDSS or its designee, at no cost to CDSS provided however,
that Horne shall have no obligation to incur any liability,pay fees, charges, or
reimbursement in connection with any assignment,wind-down or transition
services.
15.10 Entire Agreement; Amendments. This Agreement constitutes the entire
agreement of the Parties with respect to its subject matter. It supersedes all oral or
written agreements or communications between the Parties. No understanding,
Page 19 of 22 Program Funding Agreement—CCE Preservation Projects
4138-4495-8536.2
shall be binding,unless in writing, signed by both Parties. No handwritten
changes shall be effective unless initialed by each Party.
15.11 Independent Legal and Tax Advice. Horne and the County, each, have reviewed
and negotiated this Agreement using such independent legal and tax counsel as
each has deemed appropriate.
15.12 Exhibits. The Attachments, Schedules, and Addenda attached to this Agreement
are a part of this Agreement and incorporated into this Agreement by reference.
15.13 Partial Invalidity. If any part of this Agreement is unenforceable, the remainder
of this Agreement and, if applicable, the application of the affected provision to
any other circumstance, shall be fully enforceable.
15.14 Captions. The headings contained herein are for convenience only and are not
intended to define, limit, or describe the scope or intent of any provision of this
Agreement.
15.15 Force Majeure. Neither Party shall be liable to the other for loss or damages due
to failure or delay in rendering performance caused by circumstances beyond its
reasonable control, if such failure could not have been overcome by the exercise
of due diligence, due care, or foresight. Circumstances may include,but are not
limited to, acts of God or a public enemy; wars; acts of terrorism; riots; fires;
floods; epidemics; quarantine restrictions; labor disputes; strikes; defaults of
subcontractors/vendors; failure/delays in transportation; unforeseen freight
embargoes; unusually severe weather; or any law/order/regulation/request of a
state or local government entity, the U.S. Government, or of any agency, court,
commission, or other instrumentality of any such governments. Times of
performance under this Agreement may be appropriately extended for excused
delays if the Party whose performance is affected promptly notifies the other of
the existence and nature of such delay.
15.16 Publicity. Without prior written approval of the other, neither Party shall use the
other's name or make reference to the other Party or any of its employees in
publications, news releases, advertising, speeches, technical papers,photographs,
sales promotions, or publicity purposes of any form related to this work or data
developed hereunder, unless disclosure of such materials is required by legal,
accounting, or regulatory requirements beyond the disclosing Party's reasonable
control. Use of either Party's name may be made in internal documents, annual
reports, and proposals. This section shall survive expiration/termination of this
Agreement. Notwithstanding the foregoing, the County agrees that the State may
use and refer to the County and any Eligible Recipients in any publication, news
release, advertising, speech, technical paper, or for any other purposes.
15.17 Notice of Litigation. Promptly, and in any event within ten(10)business days
after an officer or other authorized representative of the County obtains
knowledge thereof, the County shall provide written notice to Horne of(i) any
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4138-4495-8536.2
litigation or governmental proceeding pending against the County which could
materially adversely affect the County's or any of its Eligible Recipient's ability
to perform its obligations under this Agreement and the Program Requirements;
and(ii) any other event which is likely to materially adversely affect the County
or an Eligible Recipient's ability to perform its obligations under this Agreement
and the Program Requirements.
15.18 Survival. Except as otherwise stated, sections that by their terms impose
continuing obligations or establish continuing rights shall be deemed to survive
the expiration or termination of this Agreement.
15.19 Successors. This Agreement shall be binding upon the Parties, their successors,
and assigns.
15.20 Approvals. Whenever this Agreement calls for a Party's approval or for CDSS's
approval, approval shall mean prior written approval (including via email), not to
be unreasonably conditioned, delayed, or withheld, unless sole discretion is
expressly noted.
15.21 Counterparts; Electronic Signatures. The Parties may sign this Agreement in
several counterparts, each of which constitutes an original, but all of which
together constitute one instrument. Electronic signatures are valid and shall bind
the Party delivering such signature.
SIGNATURES ON THE FOLLOWING PAGE
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4138-4495-8536.2
IN WITNESS THEREOF, the Parties hereto have executed this Agreement by their duly
authorized respective officers as of the day and year last written below.
HORNE LLP COUNTY OF FRESNO
By: By:
Signature of Authorized Representative Signature of Authorized Representative
et ua Thomas Nathan Ma si
Print or Type Name of Person Signing Print or Type Name of Person Signing
Partner Chairman of the Board of Supervisors of the
County of Fresno
Representative Title Representative Title
Date: 05/14/2024 Date: y—a3 -�20,?y
ATTEST:
BERNICE E.SEIDEL
Clerk of the Board of Supervisors
County of Fresno,State of California
By Deputy
Page 22 of 22 Program Funding Agreement—CCE Preservation Projects
4138-4495-8536.2
LIST OF ATTACHMENTS
Title No. of Pages
Attachment A— State Requirements 5
Attachment B—Certification Regarding Lobbying and Conflicts of Interest 2
Attachment C—CDSS Confidentiality and Information Security 13
Requirements
Attachment D—Funding Letters 51
Attachment E—Award Letters to County dated August 2022 and April 2023 3
List of Attachments 7480-CA CCE-XXX-01-G
4138-4495-8536.2
Attachment A
STATE REQUIREMENTS
1. California Civil Rights Requirements
a. During the performance of this Agreement, County and its subcontractors shall
not deny the Agreement's benefits to any person on the basis of race, religious
creed, color, national origin, ancestry,physical disability, mental disability,
medical condition, genetic information, marital status, sex, gender, gender
identity, gender expression, age, sexual orientation, or military and veteran status,
nor shall they discriminate unlawfully against any employee or applicant for
employment because of race, religious creed, color, national origin, ancestry,
physical disability, mental disability, medical condition, genetic information,
marital status, sex, gender, gender identity, gender expression, age, sexual
orientation, or military and veteran status. County shall ensure that the evaluation
and treatment of employees and applicants for employment are free of such
discrimination. County and its subcontractors shall comply with the provisions of
the Fair Employment and Housing Act (Gov. Code § 12900 et seq.), the
regulations promulgated thereunder(Cal. Code Regs., tit. 2, § 11000 et seq.), the
provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government
Code (Gov. Code §§ 11135 et seq.), the regulations or standards adopted by
CDSS to implement such article, the Unruh Civil Rights Act(California Civil
Code § 51), and Title VI of the Civil Rights Act of 1964.
County shall permit access by representatives of the Department of Fair
Employment and Housing, Horne and/or CDSS upon reasonable notice at any
time during the normal business hours, but in no case less than 24 hours' notice,
to such of its books, records, accounts, and all other sources of information and its
facilities to ascertain compliance with this clause. County and its subcontractors
shall give written notice of their obligations under this clause to labor
organizations with which they have a collective bargaining or other agreement.
(See Cal. Code Regs., tit. 2, § 11105.)
County shall include the nondiscrimination and compliance provisions of this
section in all subcontracts to perform work under the Agreement.
b. Pursuant to Public Contract Code § 2010, a person that submits a bid or proposal
to, or otherwise proposes to enter into or renew a contract with, a state agency
with respect to any contract in the amount of$100,000 or above shall certify,
under penalty of perjury, at the time the bid or proposal is submitted or the
contract is renewed, all of the following:
(1) CALIFORNIA CIVIL RIGHTS LAWS: County certifies compliance with
the Fair Employment and Housing Act(Gov. Code § 12900 et seq.), the
regulations promulgated thereunder(Cal. Code Regs., tit. 2, § 11000 et
seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of
ATTACHMENT A STATE REQUIREMENTS
A-1
4138-4495-8536.2
the Government Code (Gov. Code §§ 11135 et seq.), the regulations or
standards adopted by CDSS to implement such article, the Unruh Civil
Rights Act(California Civil Code § 51), and Title VI of the Civil Rights
Act of 1964.
(2) EMPLOYER DISCRIMINATORY POLICIES: For contracts executed or
renewed after January 1, 2017, if County has an internal policy against a
sovereign nation or peoples recognized by the United States government,
County certifies that such policies are not used in violation of the Fair
Employment and Housing Act(Gov. Code § 12900 et seq.), the
regulations promulgated thereunder(Cal. Code Regs., tit. 2, § 11000 et
seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of
the Government Code (Gov. Code §§ 11135 et seq.), the regulations or
standards adopted by CDSS to implement such article, the Unruh Civil
Rights Act(California Civil Code § 51), and Title VI of the Civil Rights
Act of 1964.
C. In the event of County's noncompliance with the requirements of the provisions
herein or with any state or federal statutes,rules, regulations, or orders regarding
civil rights or non-discrimination requirements, this Agreement may be cancelled,
terminated, or suspended in whole or in part and County may be declared
ineligible for further state contracts or grants.
d. County will include the contractor certification provisions required by this section
in every subcontract or purchase order unless exempted by federal or state
statutes, rules, regulations, or orders, so that such provisions will be binding upon
each County or vendor. County will take such action with respect to any
subcontract or purchase order Horne may direct as a means of enforcing such
provisions.
2. Subcontract Requirements
a. County may enter into subcontracts for services to be performed pursuant to the
Program Funding Agreement,provided such subcontracts are consistent with this
Agreement and provided further that County follows its procurement policy, a
copy of which has been previously provided to and approved by Horne. Horne or
CDSS reserve the right to require the substitution of subcontractors and require
County to terminate subcontracts entered into in support of this Agreement.
(1) Upon receipt of a written notice from Horne requiring the substitution
and/or termination of a subcontract, County shall take steps to ensure the
completion of any work in progress and select a replacement, if
applicable, within thirty(30) calendar days,unless a longer period is
agreed to by CDSS.
b. County shall maintain a copy of each subcontract, including supporting
documentation of cost reasonableness for subcontracting services sand shall,upon
ATTACHMENT A STATE REQUIREMENTS
A-2
4138-4495-8536.2
request by Horne or CDSS, make copies available for approval, inspection, or
audit.
C. Horne and/or CDSS assume no responsibility for the payment of subcontractors
used in the performance of this Agreement and/or subcontract agreements
between the County and Eligible Recipients. County accepts sole responsibility
for the payment of subcontractors used in the performance of this Agreement
and/or subcontract agreements between the County and Eligible Recipients.
d. County is responsible for all performance requirements under this Agreement
even though performance may be carried out through a subcontract.
e. County shall ensure that all subcontracts for services include provision(s)
requiring compliance with applicable terms and conditions specified in this
Agreement.
f. County agrees to include the following clause, relevant to record retention, in all
subcontracts for services:
Subcontractor agrees to maintain and preserve, until three (3) years after
termination of this Agreement and final payment of Program Funds, to
permit Horne or CDSS or any duly authorized representative, to have
access to, examine or audit any pertinent books, documents, papers and
records related to this subcontract and to allow interviews of any
employees who might reasonably have information related to such
records.
g. Except as otherwise provided in this Agreement, or as may be stipulated in
writing by Horne, Horne shall be County's sole point of contract for all matters
related to performance and payment under this Agreement.
h. County shall, as applicable, advise all subcontractors of their obligations to
comply with this Attachment.
3. Income Restrictions
Unless otherwise stipulated in this Agreement, County agrees that any refunds, rebates,
credits, or other amounts (including any interest thereon) accruing to or received by
County under this Agreement shall be paid by County to Horne so that Horne can pay
CDSS, to the extent that they are properly allocable to costs for which County has been
reimbursed by Horne under this Agreement.
4. Site Inspection
The State has the right at all reasonable times to inspect or otherwise evaluate the work
performed or being performed hereunder including subcontract-supported activities and
the premises in which it is being performed. If any inspection or evaluation is made of
ATTACHMENT A STATE REQUIREMENTS
A-3
4138-4495-8536.2
the premises of County, County shall provide and shall require its contractors and
subcontractors to provide all reasonable facilities and assistance for the safety and
convenience of the authorized representatives in the performance of their duties. All
inspections and evaluations shall be performed in such a manner as will not unduly delay
the work.
5. Warranties
County represents and warrants that:
a. It is free to enter into and fully perform this Agreement.
b. It has secured and will secure all rights and licenses necessary for its performance
of this Agreement.
C. It has not granted and shall not grant to any person or entity any right that would
or might derogate, encumber, or interfere with any of the rights granted to Horne
or CDSS in this Agreement.
d. It has appropriate systems and controls in place to ensure that State funds will not
be used in the performance of this Agreement for the acquisition, operation or
maintenance of computer software in violation of copyright laws.
e. It has no knowledge of any outstanding claims, licenses or other charges, liens, or
encumbrances of any kind or nature whatsoever that could affect in any way
County's performance of this Agreement.
f. All materials and equipment furnished in accordance with this Agreement and all
work performed by County will be of good and workmanlike quality, free from
faults and defects, and in conformance with the Agreement.
g. It shall comply with all applicable laws in connection with its performance of its
obligations under this Agreement.
h. The provisions set forth herein shall survive any termination or expiration of this
Agreement or any Project schedule.
6. Suspension or Stop Work Notification
a. Horne may, at any time, issue a notice to suspend performance or stop work under
this Agreement. The initial notification may be a verbal or written directive
issued by Home's Designated Representative. Upon receipt of said notice,
County is to suspend and/or stop all, or any part of, the work called for by this
Agreement.
b. Written confirmation of the suspension or stop work notification with directions
as to what work(if not all) is to be suspended and how to proceed will be
provided within thirty(30) working days of the verbal notification. The
ATTACHMENT A STATE REQUIREMENTS
A-4
4138-4495-8536.2
suspension or stop work notification shall remain in effect until further written
notice is received from Horne. The resumption of work(in whole or part)will be
at Home's discretion and upon receipt of written confirmation.
(1) Upon receipt of a suspension or stop work notification, County shall
immediately comply with its terms and take all reasonable steps to
minimize or halt the incurrence of costs allocable to the performance
covered by the notification during the period of work suspension or
stoppage.
(2) Within ninety(90) days of the issuance of a suspension or stop work
notification, Horne shall either:
(a) Cancel, extend, or modify the suspension or stop work notification;
or
(b) Terminate the Agreement as provided for in the Cancellation/
Termination clause of the Agreement.
C. If a suspension or stop work notification issued under this clause is canceled or
the period of suspension or any extension thereof is modified or expires, County
may resume work only upon written concurrence of Horne.
d. If the suspension or stop work notification is cancelled and the Agreement
resumes, changes to the services, deliverables,performance dates, and/or
agreement terms resulting from the suspension or stop work notification shall
require an amendment to the Agreement.
e. If a suspension or stop work notification is not canceled and the Agreement is
cancelled or terminated pursuant to the provision entitled Cancellation/
Termination, Horne shall allow reasonable costs resulting from the suspension or
stop work notification in arriving at the settlement costs.
f. In accordance with Article 10 and Section 15.5 of the Agreement, Horne shall not
be liable to County or its subcontractors for loss of profits because of any
suspension or stop work notification issued under this clause.
7. Compliance with Statutes and Regulations
a. County shall comply with all applicable California and federal law, regulations,
and published guidelines in connection with this Agreement.
ATTACHMENT A STATE REQUIREMENTS
A-5
4138-4495-8536.2
Attachment B
State of California
Department of Social Services
CERTIFICATION REGARDING LOBBYING AND CONFLICTS OF INTEREST
The undersigned certifies, to the best of his or her knowledge and belief, that:
1. By entering into the Agreement and accepting Program Funds, County is in compliance
with the Political Reform Act of 1978 and regulations promulgated by the Fair Political Practices
Commission(FPPC)regarding requirements relating to lobbying and conflicts of interest.
2. County is aware of California state laws and regulations regarding employing current or
former state employees. If County has any questions on the status of any person rendering
services or involved with the Agreement, Horne must be contacted immediately for clarification.
(a) Current State Employees (Pub. Contract Code § 10410): 1). No officer or
employee of the State shall engage in any employment, activity or enterprise from which
the officer or employee receives compensation or has a financial interest and which is
sponsored or funded by any state agency,unless the employment, activity or enterprise is
required as a condition of regular state employment. No officer or employee of the State
shall contract on his or her own behalf as an independent contractor with any state agency
to provide goods or services.
(b) Former State Employees (Pub. Contract Code § 10411): 1). For the two-year
period from the date he or she left state employment, no former state officer or employee
may enter into a contract in which they engaged in any of the negotiations, transactions,
planning, arrangements or any part of the decision-making process relevant to the
contract while employed in any capacity by any state agency. For the twelve-month
period from the date they left state employment, no former state officer or employee may
enter into a contract with any state agency if they were employed by that state agency in a
policy-making position in the same general subject area as the proposed contract within
the twelve (12)-month period prior to their leaving state service.
ATTACHMENT B CERTIFICATION REGARDING LOBBYING
AND CONFLICTS OF INTEREST
B-1
4138-4495-8536.2
If County violates any provisions of above paragraphs, such action by County shall
render this Agreement void (Pub. Contract Code § 10420). Members of boards and
commissions are exempt from this section if they do not receive payment other than
payment of each meeting of the board or commission,payment for preparatory time and
payment for per diem (Pub. Contract Code § 10430(e)).
Name of County: COUNTY OF FRESNO Printed Name of Person Signing for County
Nathan Magsig
Signature of Person Signing for County
Chairman of the Board of Supervisors of the
County of Fresno
Date Title
ATTEST:
BERNICE E.SEIDEL
After execution by or on behalf of County, please return to: Clerk of the Board of supervisors
California Department of Social Services County of Fresno,State of California
By- Deputy
ATTACHMENT B CERTIFICATION REGARDING LOBBYING
AND CONFLICTS OF INTEREST
B-2
4138-4495-8536.2
Attachment C
The California Department of Social Services
Confidentiality and Information Security Requirements
County-v 2019 01
This Confidentiality and Information Security Requirements—Attachment C (hereinafter
referred to as "this Exhibit" or"Attachment C") sets forth the information security and privacy
requirements County is obligated to follow with respect to all confidential and sensitive
information(as defined herein) disclosed to or collected by County,pursuant to the Agreement
in which this Attachment is incorporated. CDSS, Horne and County desire to protect the privacy
and provide for the security of CDSS Confidential, Sensitive, and/or Personal (CSP) Information
(hereinafter referred to as "CDSS CSP") in compliance with state and federal statutes, rules and
regulations.
I Order of Precedence. With respect to information security and privacy requirements for
all CDSS CSP, unless specifically exempted, the terms and conditions of this Attachment
shall take precedence over any conflicting terms or conditions set forth in any other part
of the Agreement between County and Horne.
II. Effect on lower tier transactions. The terms of this Attachment shall apply to all lower
tier transactions (e.g., agreements, sub-agreements, contracts, subcontracts, and sub-
awards, etc.). County shall incorporate the contents of this Attachment into each lower
tier transaction.
IIl. Confidentiality of Information.
a. DEFINITIONS. The following definitions apply to this Attachment and relate to
CDSS Confidential, Sensitive, and/or Personal Information:
i. "Confidential Information" is information maintained by CDSS that is
exempt from disclosure under the provisions of the California Public
Records Act(Government Code sections 6250 et seq.) or has restrictions
on disclosure in accordance with other applicable state or federal laws.
ii. "Sensitive Information" is information maintained by CDSS which is not
confidential by definition,but requires special precautions to protect it
from unauthorized access and/or modification(i.e., financial or
operational information). Sensitive information is information in which
the disclosure would jeopardize the integrity of CDSS (i.e., CDSS' fiscal
resources and operations).
iii. "Personal Information" is information, in any medium(paper, electronic,
or oral)that identifies or describes an individual (i.e., name, social security
number, driver's license, home/mailing address, telephone number,
financial matters with security codes, medical insurance policy number,
ATTACHMENT C CDSS CONFIDENTIALLY AND
INFORMATION SECURITY REQUIREMENTS
C-1
4138-4495-8536.2
Protected Health Information (PHI), etc.) and must be protected from
inappropriate access, use or disclosure, and must be made accessible to
information subjects upon request. It can also be information in the
possession of the Department in which the disclosure is limited by law or
contractual Agreement(i.e.,proprietary information, etc.).
iv. "Breach" is
1. the unauthorized acquisition, access, use, or disclosure of CDSS
CSP in a manner which compromises the security, confidentiality
or integrity of the information; or the same as the definition of
"breach of the security of the system" set forth in California Civil
Code section 1798.29(f).
V. "Information Security Incident" is
1. unauthorized access or disclosure, modification or destruction of,
or interference with, CDSS CSP that actually or potentially
jeopardizes the confidentiality, integrity, or availability of an
information system or the information the system processes, stores,
or transmits or that constitutes a violation or imminent threat of
violation of any state or federal law or in a manner not permitted
under the Agreement, including this Exhibit.
b. CDSS CSP which may become available to County as a result of the
implementation of the Agreement shall be protected by County from unauthorized
access, use, and disclosure as described in this Attachment.
C. County is notified that unauthorized disclosure of CDSS CSP may be subject to
civil and/or criminal penalties under state and federal law, including but not
limited to:
• California Welfare and Institutions Code section 10850
• Information Practices Act—California Civil Code section 1798 et seq.
• Public Records Act—California Government Code section 6250 et seq.
• California Penal Code section 502, 1 1 140-1 1 144, 13301-13303
• Health Insurance Portability and Accountability Act of 1996 ("HIPAA")—
45 CFR Parts 160 and 164
• Safeguarding Information for the Financial Assistance Programs—45 CFR
Part 205.50
ATTACHMENT C CDSS CONFIDENTIALLY AND
INFORMATION SECURITY REQUIREMENTS
C-2
4138-4495-8536.2
• Unemployment Insurance Code section 14013
d. EXCLUSIONS. "Confidential Information," "Sensitive Information," and
"Personal Information" (CDSS CSP) does not include information that:
i. is or becomes generally known or available to the public other than
because of a breach by County of these confidentiality provisions;
ii. already known to County before receipt from CDSS without an obligation
of confidentiality owed to CDSS;
iii. provided to County from a third party except where County knows, or
reasonably should know, that the disclosure constitutes a breach of
confidentiality or a wrongful or tortious act; or
iv. independently developed by County without reference to CDSS CSP.
III. County Responsibilities.
a. TRAINING. County shall instruct all employees, agents, and subcontractors
with access to CDSS CSP regarding:
i. The confidential nature of the information;
ii. The civil and criminal sanctions against unauthorized access, use, or
disclosure found in the California Civil Code section 1798.55, Penal Code
section 502 and other state and federal laws;
iii. CDSS procedures for reporting actual or suspected information security
incidents in Paragraph V—Information Security Incidents and/or
Breaches; and
iv. That unauthorized access, use, or disclosure of CDSS CSP is grounds for
immediate termination of this Agreement and may be subject to penalties,
both civil and criminal.
b. USE RESTRICTIONS. County shall take the appropriate steps to ensure that
their employees, agents, and subcontractors will not intentionally seek out, read,
use, or disclose CDSS CSP other than for the purposes described in the
Agreement and to meet its obligations under the Agreement.
C. DISCLOSURE OF CDSS CSP. County shall not disclose any individually
identifiable CDSS CSP to any person other than for the purposes described in the
Agreement and to meet its obligations under the Agreement.
d. SUBPOENA. If County receives a subpoena or other validly issued
administrative or judicial notice requesting the disclosure of CDSS CSP, County
ATTACHMENT C CDSS CONFIDENTIALLY AND
INFORMATION SECURITY REQUIREMENTS
C-3
4138-4495-8536.2
will immediately notify the Horne Project Director and CDSS Information
Security and Privacy Officer. In no event should notification to CDSS occur
more than three (3)business days after receipt by County's responsible unit for
handling subpoenas and court orders.
e. INFORMATION SECURITY OFFICER. County shall designate an
Information Security Officer to oversee its compliance with this Attachment and
to communicate with CDSS on matters concerning this Attachment.
f. REQUESTS FOR CDSS CSP BY THIRD PARTIES. County shall promptly
transmit to the Horne Project Director and CDSS Information Security and
Privacy Officer all requests for disclosure of any CDSS CSP requested by third
parties to the Agreement (except from an individual for an accounting of
disclosures of the individual's personal information pursuant to applicable state or
federal law), unless prohibited from doing so by applicable state or federal law.
g. DOCUMENTATION OF DISCLOSURES FOR REQUESTS FOR
ACCOUNTING. County shall maintain an accurate accounting of all requests
for disclosure of CDSS CSP Information and the information necessary to
respond to a request for an accounting of disclosures of personal information as
required by Civil Code section 1798.25, or any applicable state or federal law.
h. RETURN OR DESTRUCTION OF CDSS CSP ON EXPIRATION OR
TERMINATION. Upon expiration or termination of the Agreement between
County and Horne, or upon a date mutually agreed upon by the Parties following
expiration or termination, County shall return or destroy CDSS CSP. If return or
destruction is not feasible, County shall provide a written explanation to the
Horne Project Director and CDSS Information Security and Privacy Officer,
using the contact information in this Agreement. CDSS, in its sole discretion, will
make a determination of the acceptability of the explanation and, if retention is
permitted, shall inform County in writing of any additional terms and conditions
applicable to the retention of CDSS CSP.
i. RETENTION REQUIRED BY LAW. If required by state or federal law,
County may retain, after expiration or termination, CDSS CSP for the time
specified as necessary to comply with the law.
j. RECORDS RETENTION. Maintain all project materials and records pertaining
to service delivery and fiscal and administrative controls for three years after final
payment has been made under the terms of this Agreement, or until all pending
county, State and federal audits are completed, whichever is later. County agrees
that the State or its designated representative shall have the right to review and
copy any records and supporting documentation pertaining to the performance of
this Agreement. Upon request, the County shall promptly make these materials
and records available to the State or its representative including the State Auditor.
County agrees to allow the State or its representative access to such records
ATTACHMENT C CDSS CONFIDENTIALLY AND
INFORMATION SECURITY REQUIREMENTS
C-4
4138-4495-8536.2
during normal business hours and to allow interviews of any employees or others
who might reasonably have information related to such records. Further, County
agrees to include a similar right of the State to audit records and interview staff in
any subcontract related to this Agreement.
k. OBLIGATIONS CONTINUE UNTIL RETURN OR DESTRUCTION.
County's obligations regarding the confidentiality of CDSS CSP set forth in this
Agreement, including but not limited to obligations related to responding to
Public Records Act requests and subpoenas, shall continue until County returns or
destroys CDSS CSP or returns CDSS CSP to CDSS; provided, however, that on
expiration or termination of the Agreement between County and Horne, County
shall not further use or disclose CDSS CSP except as required by state or federal
law.
1. NOTIFICATION OF ELECTION TO DESTROY CDSS CSP. If County
elects to destroy CDSS CSP, County shall certify in writing, to the Horne Project
Director and CDSS Information Security and Privacy Officer, using the contact
information, that CDSS CSP has been destroyed.
In. BACKGROUND CHECK. Before a member of County's workforce may
access CDSS CSP, County must conduct a thorough background check of that
worker and evaluate the results to assure that there is no indication that the worker
may present a risk to CDSS information technology systems and/or CDSS data.
County shall retain each workforce member's background check documentation
for a period of three (3) years following Agreement termination.
n. CONFIDENTIALITY SAFEGUARDS. County shall implement
administrative,physical, and technical safeguards that reasonably and
appropriately protect the confidentiality, integrity, and availability of CDSS CSP
that it creates, receives, maintains, uses, or transmits pursuant to the Agreement.
County shall develop and maintain a written information privacy and security
program that includes administrative, technical and physical safeguards
appropriate to the size and complexity of County's operations and the nature and
scope of its activities, including at a minimum the following safeguards:
i. General Security Controls.
1. Confidentiality Acknowledgement. By executing the Agreement
and signing Paragraph XI, CDSS Confidentiality and Security
Compliance Statement, County acknowledges that the information
resources maintained by CDSS and provided to County may be
confidential, sensitive, and/or personal and requires special
precautions to protect it from wrongful access, use, disclosure,
modification, and destruction.
ATTACHMENT C CDSS CONFIDENTIALLY AND
INFORMATION SECURITY REQUIREMENTS
C-5
4138-4495-8536.2
2. Workstation/Laptop Encryption. All County-owned or
managed workstations, laptops, tablets, smart phones, and similar
devices that process and/or store CDSS CSP must be encrypted
using a FIPS 140-2 certified algorithm which is 128 bit or higher,
such as Advanced Encryption Standard(AES). The encryption
solution must be full disk unless approved by CDSS Information
Security Office.
3. Data Encryption. Any CDSS CSP shall be encrypted at rest when
stored on network file shares or document repositories.
4. Server Security. Servers containing unencrypted CDSS CSP
must have sufficient administrative,physical, and technical
controls in place to protect that data, based upon a risk
assessment/system security review.
5. Minimum Necessary. Only the minimum necessary amount of
CDSS CSP required to perform necessary business functions may
be copied, downloaded, or exported.
6. Removable Media Devices. All electronic files that contain
CDSS CSP must be encrypted when stored on any removable
media or portable device (i.e., USB thumb drives, floppies,
CD/DVD, smart phone, backup tapes, etc.). Encryption must be a
FIPS 140-2 certified algorithm which is 128 bit or higher, such as
AES.
7. Antivirus Software. All County-owned or managed workstations,
laptops, tablets, smart phones, and similar devices that process
and/or store CDSS CSP must install and actively use
comprehensive anti-virus software solution with automatic updates
scheduled at least daily.
8. Patch Management. To correct known security vulnerabilities,
County shall install security patches and updates in a timely
manner on all County-owned or managed workstations, laptops,
tablets, smart phones, and similar devices that process and/or store
CDSS CSP as appropriate based on County's risk assessment of
such patches and updates, the technical requirements of County's
systems, and the vendor's written recommendations. If patches
and updates cannot be applied in a timely manner due to hardware
or software constraints, mitigating controls will be implemented
based upon the results of a risk assessment.
9. User IDs and Password Controls. All users must be issued a
unique username for accessing CDSS CSP. County's password
ATTACHMENT C CDSS CONFIDENTIALLY AND
INFORMATION SECURITY REQUIREMENTS
C-6
4138-4495-8536.2
policy must be based on information security best practices for
password length, complexity, and reuse.
10. Data Destruction. Upon termination of the Agreement, all CDSS
CSP must be sanitized in accordance with NIST Special
Publication 800-88, Guidelines for Media Sanitization.
ii. System Security Controls.
1. System Timeout. The system providing access to CDSS CSP
must provide an automatic timeout, requiring re-authentication of
the user session after no more than thirty(30)minutes of inactivity
for applications, and fifteen(15) minutes of inactivity for desktops
and laptops.
2. Warning Banners. All systems (servers, desktops, laptops, etc.)
containing CDSS CSP must display a warning banner at login
stating that data is confidential, systems are logged, and system use
is for business purposes only. User must be directed to log off the
system if they do not agree with these requirements.
3. System Logging. The system must maintain an automated audit
trail which can identify the user or system process which initiates a
request for CDSS CSP, or which alters CDSS CSP. The audit trail
must be date and time stamped, must log both successful and failed
accesses, must be read only, and must be restricted to authorized
users. If CDSS CSP is stored in a database, database logging
functionality must be enabled. Audit trail data must be archived
for at least one (1) year after occurrence.
4. Access Controls. The system must use role-based access controls
for all user authentications, enforcing the principle of least
privilege.
5. Transmission Encryption. All data transmissions of CDSS CSP
by County outside the secure internal network must be encrypted
using a FIPS 140-2 certified algorithm, such as Advanced
Encryption Standard(AES), with a 128-bit key or higher.
Encryption can be end-to-end at the network level, or the data files
containing CDSS CSP can be encrypted. This requirement
pertains to any type of CDSS CSP in motion such as website
access, file transfer, and email.
6. Intrusion Detection. All systems involved in accessing, holding,
transporting, and protecting CDSS CSP that are accessible via the
ATTACHMENT C CDSS CONFIDENTIALLY AND
INFORMATION SECURITY REQUIREMENTS
C-7
4138-4495-8536.2
Internet must be protected by a comprehensive intrusion detection
and prevention solution.
iii. Audit Controls.
1. System Security Review. All systems processing and/or storing CDSS
CSP must have at least an annual system risk assessment/security review
which provides assurance that administrative, physical, and technical
controls are functioning effectively and providing adequate levels of
protection. Reviews shall include vulnerability scanning tools.
2. Log Reviews. All systems processing and/or storing CDSS CSP must
have a routine procedure in place to review system logs for unauthorized
access.
3. Change Control. All systems processing and/or storing CDSS CSP must
have a documented change control procedure that ensures separation of
duties and protects the confidentiality, integrity and availability of data.
iv. Business Continuity/Disaster Recovery Controls.
1. Disaster Recovery. County must establish a documented plan to enable
continuation of critical business processes and protection of the security of
electronic CDSS CSP in the event of an emergency. Emergency means
any circumstance or situation that causes normal computer operations to
become unavailable for use in performing the work required under this
Agreement for more than twenty-four(24) hours.
2. Data Backup Plan. County must have established documented
procedures to backup CDSS CSP to maintain retrievable exact copies of
CDSS CSP. The plan must include a regular schedule for making
backups, storing backups offsite, an inventory of backup media, and the
amount of time to restore CDSS CSP should it be lost. At a minimum, the
schedule must be a weekly full backup and monthly offsite storage of
CDSS data.
V. Paper Document Controls.
1. Supervision of Information. CDSS CSP in paper form shall not be left
unattended at any time, unless it is locked in a file cabinet, file room, desk
or office. Unattended means that information may be observed by an
individual not authorized to access the information. CDSS CSP in paper
form shall not be left unattended at any time in vehicles or planes and shall
not be checked in baggage on commercial airplanes.
ATTACHMENT C CDSS CONFIDENTIALLY AND
INFORMATION SECURITY REQUIREMENTS
C-8
4138-4495-8536.2
2. Escorting Visitors. Visitors to areas where CDSS CSP are contained
shall be escorted, and CDSS CSP shall be kept out of sight while visitors
are in the area.
3. Confidential Destruction. CDSS CSP must be disposed of through
confidential means, such as cross-cut shredding and/or pulverizing.
4. Removal of Information. CDSS CSP must not be removed from the
premises of County except for identified routine business purposes or with
express written permission of CDSS.
5. Faxing. CDSS CSP that must be transmitted by fax shall require that
County confirms the recipient fax number before sending, takes
precautions to ensure that the fax was appropriately received, maintains
procedures to notify recipients if County's fax number changes, and
maintains fax machines in a secure area.
6. Mailing. Paper copies of CDSS CSP shall be mailed using a secure,
bonded mail service, such as Federal Express, UPS, or by registered
U.S. Postal Service (i.e., accountable mail using restricted delivery). All
packages must be double packed with a sealed envelope and a sealed outer
envelope or locked box.
IV. Information Security Incidents and/or Breaches of CDSS CSP.
a CDSS CSP Information Security Incidents and/or Breaches Response
Responsibility. County shall be responsible for facilitating the Information
Security Incident and/or Breach response process as described in California Civil
Code 1798.82(f), and State Administrative Manual (SAM) section 5340,
Information Security Incident Management, including,but not limited to, taking:
i. Prompt corrective action to mitigate the risks or damages involved with
the Information Security Incident and/or Breach and to protect the
operating environment; and
ii. Any action pertaining to such unauthorized disclosure required by
applicable Federal and State laws and regulations.
b. Discovery and Notification of Information Security Incidents and/or
Breaches of CDSS CSP. County shall notify the Horne Project Director and
CDSS Information Security and Privacy Officer of an Information Security
Incident and/or Breach as expeditiously as practicable and without unreasonable
delay, taking into account the time necessary to allow County to determine the
scope of the Information Security Incident and/or Breach, but no later than three
(3) calendar days after the discovery of an Information Security Incident and/or
Breach. Notification is to be made by telephone call and email.
ATTACHMENT C CDSS CONFIDENTIALLY AND
INFORMATION SECURITY REQUIREMENTS
C-9
4138-4495-8536.2
C. Isolation of System or Device. A system or device containing CDSS CSP
compromised by an exploitation of a technical vulnerability shall be promptly
disconnected or quarantined and investigated until the vulnerability is resolved.
County will notify CDSS and Horne within two (2) business days of a confirmed
exploitation of a technical vulnerability and keep CDSS and Horne informed as to
the investigation until resolution of the vulnerability is completed.
d. Investigation of Information Security Incidents and/or Breaches. County
shall promptly investigate Information Security Incidents and/or Breaches of
CDSS CSP. CDSS shall have the right to participate in the investigation of such
Information Security Incidents and/or Breaches. CDSS shall also have the right
to conduct its own independent investigation, and County shall cooperate fully in
such investigations. County is not required to disclose their un-redacted
confidential, proprietary, or privileged information. County will keep CDSS fully
informed of the results of any such investigation.
e. Updates on Investigation. County shall provide regular(at least once a week)
email updates on the progress of the Information Security Incident and/or Breach
investigation of CDSS CSP to the Horne Project Director and CDSS Information
Security and Privacy Officer until the updates are no longer needed, as mutually
agreed upon between County and the Horne Program Director/CDSS Information
Security and Privacy Officer. County is not required to disclose their unredacted
confidential, proprietary, or privileged information.
f. Written Report. County shall provide a written report of the investigation to the
Horne Project Director and CDSS Information Security and Privacy Officer
within thirty(30)business days of the discovery of the Information Security
Incident and/or Breach of CDSS CSP. County is not required to disclose their
unredacted confidential, proprietary, or privileged information. The report shall
include, but not be limited to, if known, the following:
i County point of contact information;
ii. A description of what happened, including the date of the Information
Security Incident and/or Breach of CDSS CSP and the date of the
discovery of the Information Security Incident and/or Breach, if known;
iii. A description of the types of CDSS CSP that were involved and the extent
of the information involved in the Information Security Incident and/or
Breach;
iv. A description of the unauthorized persons known or reasonably believed
to have improperly used or disclosed CDSS CSP;
V. A description of where CDSS CSP is believed to have been improperly
transmitted, sent, or utilized;
ATTACHMENT C CDSS CONFIDENTIALLY AND
INFORMATION SECURITY REQUIREMENTS
C-10
4138-4495-8536.2
vi. A description of the probable causes of the improper use or disclosure;
vii. Whether Civil Code sections 1798.29 or 1798.82, or any other federal or
state laws requiring individual notifications of breaches, are triggered; and
viii. A full, detailed corrective action plan, including information on measures
that were taken to halt and/or contain the Information Security Incident
and/or Breach of CDSS CSP.
g. Cost of Investigation and Remediation. Per SAM section 5305.8, County shall
be responsible for all direct and reasonable costs incurred by Horne or CDSS due
to Information Security Incidents and/or Breaches of CDSS CSP resulting from
County's failure to perform or from negligent acts of its personnel, and resulting
in the unauthorized disclosure, release, access, review or destruction, or loss, theft
or misuse of an information asset. These costs include, but are not limited to,
notice and credit monitoring for twelve (12) months for impacted individuals,
Horne staff time, CDSS staff time, material costs, postage, media announcements,
and other identifiable costs associated with the Information Security Incident,
Breach and/or loss of data.
V. Contact Information. To direct communications to the above-referenced Horne and
CDSS staff, County shall initiate contact as indicated herein. Horne and CDSS reserve
the right to make changes to the contact information below by giving written notice to
County. Said changes shall not require an amendment to this Attachment or the
Agreement to which it is incorporated.
Horne Project Director CDSS
Information Security & Privacy Officer
California Department of Social Services
Information Security&Privacy Officer
See Summary Cover Sheet of the Program 744 P Street, MS 9-9-70
Funding Agreement for Horne Project Sacramento, CA 95814
Director information
Email: iso@dss.ca.gov
Telephone: (916) 651-5558
VI. Audits and Inspections. CDSS may inspect and/or monitor compliance with the
safeguards required in this Attachment. County shall promptly remedy any violation of
any provision of this Attachment and shall certify the same to the Horne Project Director
and CDSS Information Security and Privacy Officer in writing. The fact that CDSS or
Horne inspects, or fails to inspect, or has the right to inspect, does not relieve County of
its responsibility to comply with this Attachment.
ATTACHMENT C CDSS CONFIDENTIALLY AND
INFORMATION SECURITY REQUIREMENTS
C-11
4138-4495-8536.2
VII. Amendment. The Parties acknowledge that federal and state laws regarding information
security and privacy rapidly evolve and that amendment of this Attachment may be
required to provide for procedures to ensure compliance with such laws. The Parties
specifically agree to take such action as is necessary to implement new standards and
requirements imposed by regulations and other applicable laws relating to the security or
privacy of CDSS CSP.
VIII. Interpretation. The terms and conditions in this Attachment shall be interpreted as
broadly as necessary to implement and comply with regulations and applicable State
laws. The Parties agree that any ambiguity in the terms and conditions of this Exhibit
shall be resolved in favor of a meaning that complies and is consistent with federal and
state laws and regulations.
IX. Termination. An Information Security Incident and/or Breach of CDSS CSP by County,
its employees, agents, or subcontractors, as determined by CDSS, may constitute a
material breach of the Agreement between County and Horne and grounds for immediate
termination of the Agreement.
X. CDSS Confidentiality and Security Compliance Statement.
CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
CONFIDENTIALITY AND SECURITY COMPLIANCE STATEMENT V 2019 01
Information resources maintained by the California Department of Social Services
(CDSS) and provided to County may be confidential, sensitive, and/or personal and
requires special precautions to protect it from wrongful access, use, disclosure,
modification, and destruction.
We hereby acknowledge that the confidential and/or sensitive records of CDSS are
subject to strict confidentiality requirements imposed by state and federal law,which may
include, but are not limited to,the following: the California Welfare and Institutions
Code § 10850, Information Practices Act—California Civil Code § 1798 et seq., Public
Records Act—California Government Code § 6250 et seq., California Penal Code § 502,
11140-11144, 13301-13303, Health Insurance Portability and Accountability Act of
1996 ("HIPAA")—45 CFR Parts 160 and 164, and Safeguarding Information for the
Financial Assistance Programs—45 CFR Part 205.50. Contractor agrees to comply with
the laws applicable to CDSS CSP received.
This Confidentiality and Security Compliance Statement must be signed and returned
with the Agreement.
Project Representative
Name(Printed): Nathan Magsig
Title: Chairman of the Board of Supervisors of the County of Fresno
ATTACHMENT C CDSS CONFIDENTIALLY AND
INFORMATION SECURITY REQUIREMENTS
ATTEST: C-12
4138-4495-8536.2 BERNICE E.SEIDEL
Clerk of the Board of Supervisors
County of Fresno,State of California
By Deputy
Business Name: County of Fresno
Email Address:
Phone:
Signature:
Date Signed:
READ and ACKNOWLEDGED: Information Security Officer
(or authorized official responsible for business' information security program)
Name(Printed): Eric W. Matthews
Title: Deputy Director IT
Business Name: County of Fresno
Email Address: ematthews@fresnocountyca.gov
Phone: 559-600-5810
Signature.-
Date Signed: 02/16/2024
ATTACHMENT C CDSS CONFIDENTIALLY AND
INFORMATION SECURITY REQUIREMENTS
C-13
4138-4495-8536.2
Attachment D
FUNDING LETTERS
[attached]
ATTACHMENT D FUNDING LETTERS
D-1
4138-4495-8536.2
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
DATE: JUNE 10, 2022
TO: ALL COUNTY DIRECTORS
SUBJECT: NOTICE OF FUNDING AVAILABILITY FOR THE COMMUNITY CARE
EXPANSION PROGRAM: PRESERVATION OPERATIONAL
SUBSIDIES AND PRESERVATION CAPITAL FUNDS
REFERENCE: Assembly Bill (AB) 172 (Chapter 696, Statutes of 2021); Welfare and
Institutions Code (WIC) Section 18999.97; Senate Bill (SB) 129 (Chapter
69, Statutes of 2021)
The purpose of this letter is to notify all County Directors of noncompetitive allocations
available for all counties with licensed residential adult and senior care facilities. This
funding is available through the Community Care Expansion (CCE) Preservation Funds
for the immediate preservation of licensed residential adult and senior care facilities
serving applicants or recipients of Supplemental Security Income/State Supplementary
Payment (SSI/SSP) or Cash Assistance Program for Immigrants (CAP[), including those
who are experiencing or at risk of homelessness. The CCE Preservation Funds include
operating subsidies and funds for capital projects.
Counties accepting these funds will be responsible for the administration and
disbursement of funds to existing licensed adult and senior care facilities serving the
prioritized population, consistent with the state guidelines provided within this funding
announcement.
The California Department of Social Services (CDSS) is contracting with Advocates for
Human Potential, Inc. (AHP), a consulting and research firm focused on improving
health and human services systems, to serve as the third-party administrator for the
CCE program.
I. PROGRAM BACKGROUND
California has a shortage of adult and senior care facilities (e.g., Adult Residential
Facilities [ARFs] and Residential Care Facilities for the Elderly [RCFEs]) that accept
individuals receiving or applying for SSI/SSP or CAPI. It has also seen a decline in the
number of SSI/SSP recipients residing in adult and senior care facilities. The CCE
program was established by Assembly Bill (AB) 172 (Chapter 696, Statutes of 2021) to
fund capital projects and promote the sustainability of residential adult and senior care
facilities and to address historic gaps in the long-term care continuum. The CCE
program will provide a total of$805 million in funding for acquisition, construction, and
rehabilitation to preserve and expand adult and senior care facilities that serve SSI/SSP
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
and CAPI applicants and recipients, including those who are experiencing or at risk of
homelessness.
A total of$195 million is reserved for the CCE Preservation Funds, which are intended
to immediately preserve and avoid the closure of licensed residential adult and senior
care facilities serving qualified residents, defined as applicants or recipients of SSI/SSP
or CAPI, including the "prioritized population" of qualified residents who are
experiencing or at risk of homelessness (WIC sections 18999.97(c)(1) and (2)).
The $195 million Preservation Funds comprise $55 million in state general funds for
preservation operating subsidy payments and $140 million in State Fiscal Recovery
Funds (SFRF) established by the American Rescue Plan Act (ARPA) of 2021 (Public
Law 117-2) for preservation capital projects. Refer to Section II: Allocation and Budget
for additional information on the funding available for each of these eligible uses and
expenditure deadlines.
California State Priorities
CCE funding opportunities are designed to address the following state priorities:
• Invest in behavioral health and community care options that advance racial
equity
• Seek geographic equity of behavioral health and community care options
• Address urgent gaps in the care continuum for people with behavioral health
conditions, including seniors, adults with disabilities, and children and youth
• Increase options across the life span that serve as an alternative to incarceration,
hospitalization, homelessness, and institutionalization
• Meet the needs of vulnerable populations with the greatest barriers to access,
including people experiencing homelessness and justice involvement
• Ensure care can be provided in the least restrictive settings to support
community integration, choice, and autonomy
• Leverage county and Medi-Cal investments to support ongoing sustainability
• Leverage the historic state investments in housing and homelessness
In addition to the CCE Preservation Funds described in this letter, $570 million is
available for the CCE Capital Expansion Program through a joint Request for
Applications alongside the Department of Health Care Services Behavioral Health
Continuum Infrastructure Program. The timeline, eligible uses, program guidelines,
and eligibility for the CCE Capital Expansion Program are distinct from the CCE
Preservation Funds outlined in this letter. Counties interested in funds to support the
creation or expansion of care facilities or other residential care settings to serve
recipients or applicants of SSI/SSP or CAPI are encouraged to learn more about the
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
CCE Capital Expansion funds, which are available for acquisition, construction, and
rehabilitation to expand adult and senior care facilities serving qualified residents.
Please visit the Improving California's Infrastructure website for more information on
CCE Capital Expansion funds.
II. ALLOCATION AND BUDGET INFORMATION
Funding Availability
The CCE Preservation Funds identified in this letter total $195 million in noncompetitive
allocations to counties for the immediate preservation of licensed residential adult and
senior care facilities serving qualified residents. Note: facilities vendored by regional
centers are not eligible for CCE Preservation Funds. However, these facilities and/or
operators are encouraged to contact the regional center to request assistance in
identifying resources related to capital development or rehabilitation, if applicable.
The CCE Preservation Funds are divided into two components:
• Operating Subsidy Payments (OSP): $55 million is available to fund operating
subsidies to existing licensed residential adult and senior care facilities serving
qualified residents. The intent of the OSP funds is to preserve and avoid the
closure of critical residential adult and senior care facilities. OSP funds can cover
an eligible licensed facility's potential or projected operating deficits. Refer to
Sections 101 and 201 for more information on OSPs.
• Capital Projects (CP): $140 million is available in capital funds to preserve
facilities in need of critical repairs or required upgrades, thereby potentially
preventing facility closure, which could result in exits to homelessness. Funds
can be applied to physical repairs and upgrades on an approved facility's
property, including inside or outside the facility, within its property line. The CP
can also fund repairs needed to ensure facilities are compliant with licensing
standards. Refer to Sections 102 and 202 for more information on CPs.
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
Funding and match requirements are as follows:
Purpose Match Funding Source and Amount
Expenditure Timeline
State general fund must be
Operating Subsidy None obligated by June 30, 2027, $55,000,000
Payments (OSP) and liquidated by June 30,
2029
Federal SFRF funds must be
Capital Projects 10% obligated by June 30, 2024,
(CP) match and liquidated by December $140,000,000
31, 2026
Total CCE Preservation Funds $195,000,000
Federal and State Expenditure Timeline
Of the $195 million in CCE Preservation Funds, the OSP component is funded by state
general funds. OSP funds must be obligated by June 30, 2027, and liquidated by June
30, 2029.
The CP component is funded by the SFRF pursuant to ARPA. CP funds must be
obligated by June 30, 2024, and liquidated by December 31, 2026.
Allocation Methodology
OSP and CP preservation funds are available to all counties with current licensed
facilities serving qualified residents. The noncompetitive allocations are listed in Section
206. A need-based methodology for each county was determined by calculating the
proportion of beds in existing licensed facilities currently serving individuals receiving
SSI/SSP according to Community Care Licensing Division (CCLD) survey data.
Facilities funded by regional centers are excluded and not eligible for CCE Preservation
Funds. Refer to "Process to Accept CCE Preservation OSP and/or CP Funds" below for
information on how county entities can accept funds.
Funding is not available in the noncompetitive allocation for counties with no qualifying
facilities (i.e., no current licensed facilities willing to accept individuals who are
applicants or recipients of SSI/SSP, not funded by regional centers). However, a base
allocation of$200,000 may be requested if the county believes there are existing
licensed adult and senior care facilities serving applicants or recipients of SSI/SSP or
CAPI that were not identified by the need-based methodology. Counties interested in
this option must contact cce.preservation(cDahpnet.com no later than July 15, 2022.
4 ��'�
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
Refer to Section 206 to review the counties that fall into this category, as indicated by
an asterisk.
Allocations and Awards Timeline
The following table summarizes the CCE Preservation Fund timeline:
Notice of funding availability released June 10, 2022
Stakeholder webinar June 17, 2022
Deadline for counties to accept allocations via July 15, 2022
the Director's Certification
Deadline for counties to submit initial October 15, 2022
Implementation Plan for OSP and/or CP
Preservation Funds
Deadline for counties to submit final January 15, 2023
Implementation Plan for OSP and/or CP
Preservation Funds
Initial award announcements Continuous; individual award
announcements will be issued
within 45 days of receipt of a
complete Director's Certification
Standard Agreement (contract) with AHP will issue a Standard
participating counties Agreement (contract) for counties
within 60 days of county initial
Implementation Plan submission
CDSS reserves the right to modify the projected timeline at any time.
Process to Accept CCE Preservation OSP and/or CP Funds
Counties may choose to accept funds for either OSP, CP, or both. If both are accepted,
a county must designate one county department to implement both program
components. Any county department is eligible to accept the funds; examples include,
but are not limited to, social service departments, health departments, aging or adult
services, the behavioral health department, or housing and community development
departments. However, the same county department must administer both OSP and CP
funds.
Counties must accept or decline funds via the Director's Certification in the
web portal by July 15, 2022. Counties are encouraged to accept funds as soon as
possible to meet the immediate needs of adult and senior care facilities at risk
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
of closure. Funds not accepted by July 15, 2022, will be redistributed to counties
that confirm an ability to accept additional funds via the web portal.
Award Announcement and Contract
AHP will review responses via the web portal on a rolling basis. Within 45 days of
receiving the complete Director's Certification, AHP will issue an award letter.
Following submission of a signed Director's Certification, counties will be required to
submit an initial CCE Preservation Funds Implementation Plan. Initial plans are due no
later than October 15, 2022. If additional time is needed to seek local approval or to
finalize the plan, counties may submit an amended or final Implementation Plan no later
than January 15, 2023.
AHP will issue a Standard Agreement (contract) within 60 days of receipt of an initial
Implementation Plan. The final Implementation Plan will be attached as an Addendum
to the Standard Agreement (contract) and monitored for compliance where appropriate,
as well as serve as a starting point for ongoing technical assistance (TA). The Standard
Agreement must be signed, submitted, and fully executed with AHP before initial
funding can be disbursed.
III. PROGRAM ADMINISTRATION
Summary of Program Requirements
AHP, with direction from CDSS, will award funds and issue contracts for CCE
Preservation Funds to interested counties. AHP will use the web platform to obtain
Director's Certifications and Implementation Plans.
Counties accepting funds shall be responsible for and asked to certify to the following:
• Submit a Director's Certification of funds acceptance.
• Identify one county department to manage all CCE Preservation Funds (both
OSP and CP grants).
• Submit an Implementation Plan outlining how the program will be administered.
• Ensure program administration is consistent with the attached notice of funding
availability (NOFA) and executed contract, including application processes,
funding disbursement, and monitoring for funding accepted (OSP, CP, or both)
for eligible use.
• Ensure facilities receiving funds are in good standing with CCLD at CDSS.
• Maximize funds for preservation of licensed facilities serving qualified residents
and the prioritized population and limiting county administrative costs to 10
percent or less.
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
• Provide reports to AHP and CDSS upon request. The reporting frequency is
generally expected to be quarterly at minimum; however, additional ad hoc
reports may be requested.
• Provide match funds for CP funds of at least 10 percent, either provided by the
county or contributed by facilities in receipt of CP funds. Note: OSP funds do not
require a county match.
Technical Assistance
AHP has been contracted to offer ongoing general training and TA throughout the life of
the CCE Preservation Funds, effective immediately. Topics may include, but are not
limited to, permit and licensing requirements, construction plans, oversight and
management, braiding of funds, workforce development strategies, racial equity, serving
diverse and complex individuals, and leveraging Medicaid and other funding sources for
sustainability and budgeting best practices. AHP will also conduct informational
webinars on topics such as strategies to serve target and prioritized populations,
braiding resources to ensure viability, and green/sustainable building practices, as well
as addressing concerns common to capital development projects serving the prioritized
populations.
Counties may request TA by contacting cce.preservation(a)-ahpnet.com.
Additional information about AHP and CCE is available at
https://www.buildingcalhhs.com.
IV. QUESTIONS AND ADDITIONAL INFORMATION
Contact cce.p reservation(oahon et.com with questions about this letter or attachments.
Additional information to address questions will be provided through a public webinar
scheduled for June 17, 2022); an announcement will be forthcoming, following the
release of this letter.
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
Community Care Expansion Preservation
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
Contents
ArticleI — Program Overview....................................................................................... 9
Section 101 — Preservation OSP.............................................................................. 9
Section 102 — Preservation CP.............................................................................. 11
Article II — Eligible Recipients and Expenditures........................................................ 11
Section 201 — Preservation OSP Eligible Recipients ............................................. 11
Section 202 — Preservation CP Eligible Recipients................................................ 12
Section 203 — Ineligible OSP or CP Recipients...................................................... 14
Section 204 — Facility Prioritization Criteria............................................................ 14
Section 205 — Eligible/Ineligible Expenditures........................................................ 15
Section 206 — County Allocations........................................................................... 17
Article III — County Program Implementation Requirements...................................... 18
Section 301 — County Implementation Plan ........................................................... 18
Section 302 — Fund Disbursement......................................................................... 19
Section 303 — Preservation Capital Projects Funding Match ................................. 24
Section 304 — Service Use Terms.......................................................................... 25
Article IV — Preservation Program Requirements ...................................................... 25
Section 401 — Data Collection and Reporting ........................................................ 25
Section 402 — Monitoring and Program Oversight.................................................. 26
Article V —Authorizing and Applicable Law ............................................................... 27
Section 501 — Federal and State Program Requirements...................................... 27
Section 502 — Collaboration, Racial Equity, and Fair Housing ............................... 30
KeyDefinitions........................................................................................................... 31
Acronyms................................................................................................................... 33
AddendumA.............................................................................................................. 33
Examples of CCE CP Fund Disbursement Procedures ......................................... 33
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
Article I — Program Overview
The Community Care Expansion (CCE) Preservation Funds consist of two components:
1) Operating Subsidy Payments (OSP) and 2) Capital Projects (CP).
The unique goals, eligibility, and uses of each component are outlined throughout this
attachment. Both components are intended to support the immediate preservation of
licensed residential adult and senior care facilities serving qualified residents, defined as
applicants or recipients of SSUSSP or CAPI, including the prioritized population of
qualified residents who are experiencing or at risk of homelessness.
Section 101 — Preservation OSP
The intent of the OSP funds is to provide operating subsidies to existing licensed
residential adult and senior care facilities to preserve them and avoid their closure, as
well as to increase the acceptance of new qualified residents, including the prioritized
population. Note: Facilities vendored by a regional center are not eligible for these
funds.
OSP funds can cover an eligible licensed facility's potential or projected operating
deficits. Operating costs are the costs associated with the day-to-day physical operation
(e.g., staffing, utilities, security, maintenance) of qualified facilities. OSP funds will cover
operating costs that are not covered by existing revenues. Eligible uses are further
defined in Section 205.
Counties accepting OSP funding are required to develop an application, allocation
methodology, and award process for eligible licensed facilities consistent with state
guidelines outlined in this document. Counties may determine whether they want to
provide a set monthly payment or cost reimbursement based on actual costs and
expenditures. Examples of each of these options are described below:
• Set monthly payment: A county may develop an allocation methodology for a
monthly payment based on the number of beds currently occupied by qualified
residents. In this scenario, the county shall determine the appropriate monthly
amount for the operating subsidy payments that a facility would receive based on
local needs. The monthly amount shall be applied at a rate per bed occupied by
a qualified resident that month; beds occupied by non-qualified residents may not
be included in the allocation methodology. With a set monthly payment, CDSS
recommends subsidy payments of at least $1,000 per bed for qualified residents,
unless the county determines, based on their local needs assessment, that the
amount should be less than $1,000 per bed for qualified residents. For example,
if the monthly amount is set at $1,000 and four beds are currently occupied by
qualified residents, the facility would receive a total of$4,000 in OSP funds that
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
month. If in the next month there are only three beds occupied by qualified
residents, the facility would receive $3,000.
• Cost reimbursement: A county may reimburse facilities based on actual costs
and expenditures. The facility can only be reimbursed for the share of eligible
operating costs applicable to qualified residents. Counties choosing to use a cost
reimbursement method should provide a template tool for facility applicants to
project their operating costs and deficits for a set period. For example, if 25
percent of a facility's beds are occupied by qualified residents, then the facility
may request reimbursement for 25 percent of that month's eligible operating
costs. Each month, the total reimbursed may vary due to changes in monthly
operating costs as well as changes in the number of qualified residents in a
facility.
Consistent with Welfare and Institutions Code (WIC) section 18999.97, facilities in
receipt of OSP shall be deed restricted to provide licensed adult and senior residential
care for at least the length of time the county will provide operating subsidy payments. A
deed restriction on the title of the property safeguards the property for purposes
consistent with the grant for the duration of the contract performance period. A deed
restriction must be recorded on the title to the property before the county can approve
any OSP. As such, facility operators that are leasing the property must obtain the
owner's consent for the deed restriction.
The length of time each county will provide OSP may vary depending on the county's
OSP allocation, the number of facilities in receipt of OSP, and the amount of the
monthly OSP. For example, a county determines they will provide OSP to eligible
facilities over the course of 3 years. This duration of 3 years was determined based on
the county's allocation and number of facilities the county prioritized to receive OSP. In
this example, all facilities receiving OSP shall be deed restricted to provide licensed
adult and senior residential care for at least the 3 years that the county will provide OSP
via the CCE Preservation Funds.
Counties may request further technical assistance (TA) regarding how to establish
processes to ensure properties are deed restricted, consistent with the statutory
requirements, by contacting Advocates for Human Potential, Inc. (AHP) at
cce.preservation(@ahpnet.com.
Note: OSP must be used to cover the facility's operating deficits. SSI/SSP or CAPI
recipients may not receive free or reduced amount for board/room or care or
supervision as a result of the OSP funding. OSP funding must not supplant the
recipient's payment to the facility or supplement their board/room charge.
10 „,.
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
Section 102 — Preservation CP
The CP component of the CCE Preservation Funds provides capital funds to preserve
facilities in need of repairs or required upgrades, thereby potentially preventing a facility
closure and exits to homelessness. Funds can be applied to physical repairs and
upgrades on an approved facility's property, including inside or outside the facility,
within its property line. The CP funds can also be used for repairs needed for facilities to
ensure they are compliant with licensing standards. Eligible uses are further defined in
Section 205.
Counties accepting CP funding are required to develop an application, allocation
methodology, and award process for eligible licensed facilities that are currently serving
qualified individuals.
Article II — Eligible Recipients and Expenditures
CCE Preservation noncompetitive allocations will be distributed to the county
department designated by the county, once they are accepted through the process
described in Section 302. If both OSP and CP funds are accepted, one county
department must manage both programs. Examples of county departments may
include, but are not limited to, the housing development department, aging or adult
services, or the behavioral health department. The department implementing OSP
and/or CP should collaborate closely with behavioral health and homelessness systems
of care to implement the program.
The designated county department will be responsible for the program administration,
funding disbursement, and monitoring for OSP and CP to eligible licensed facilities, as
applicable, as described in Sections 302 and 402, respectively.
Counties accepting OSP and/or CP funds must provide information via an
Implementation Plan that outlines how the county's funding application and
dissemination process will target facilities that meet the eligibility and prioritization
criteria outlined below. More information on the Implementation Plan is included in
Section 301 .
Section 201 — Preservation OSP Eligible Recipients
OSP funds are intended to provide operating subsidies to existing licensed eligible
residential adult and senior care facilities to preserve and avoid their closure, and to
increase the acceptance of new qualified residents, including the prioritized population.
To receive OSP funding, facilities must meet the following eligibility criteria:
11 ��
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
1. Be an existing licensed Adult Residential Facility (ARF), as defined in Title 22,
section 80001(a)(5) of the California Code of Regulations; Residential Care
Facility for the Elderly (RCFE), as defined in Title 22, section 87101(r)(5) of the
California Code of Regulations; or Residential Care Facility for the Chronically III
R( CFCI), as defined in Title 22, section 87801(r)(5) of the California Code of
Regulations;
2. Currently serve at least one qualified resident;
3. Be in good standing with the Community Care Licensing Division (CCLD) or
certify that the capital project funds will bring them into good standing, defined as
licensees in "substantial compliance" with licensing statues and regulations per
Title 22, sections 80001(s)(8), 81001(s)(8), 87101(s)(9), and 87801(s)(7) of the
California Code of Regulations; and
4. Have a critical monthly or annual operating and cash flow gap that places the
facility at risk of closure or at risk of reducing the number of beds for qualified
residents.
Facilities may certify that they meet these eligibility criteria through a written statement
or attestation as part of the application process. Although counties may request further
documentation when needed, CDSS encourages counties to develop streamlined and
low-barrier applications to facilitate timely awards.
To accept funds, facilities must also agree to meet the following conditions throughout
implementation:
1. Use funds in accordance with the eligible uses outlined in Article II as well as the
program requirements outlined in Article IV and throughout this NOFA.
2. Agree to continue serving applicants or recipients of SSI/SSP or CAPI.
3. Agree to prioritize applications from qualified residents who are currently
experiencing or at risk of homelessness.
4. Remain in good standing with CCLD.
5. Consistent with WIC section 18999.97(f), include a deed restriction to provide
licensed adult and senior residential care for the length of time the grantee
provides operating subsidy payments.
Counties shall monitor adherence to these requirements and ensure that facilities
continue to meet the standards outlined above throughout program implementation.
Counties will be responsible for reporting on the adherence to these requirements
through regular program reports, as further described in Section 401 .
Section 202 — Preservation CP Eligible Recipients
CP funds are intended to preserve essential residential adult and senior care facilities in
need of resources for repairs or required upgrades and that serve qualified residents
and the prioritized population.
�P
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
To receive CP funding, facilities must meet the following eligibility criteria:
1. Be an existing licensed Adult Residential Facility (ARF), as defined in Title 22,
section 80001(a)(5) of the California Code of Regulations; Residential Care
Facility for the Elderly (RCFE), as defined in Title 22, section 87101(r)(5) of the
California Code of Regulations; or Residential Care Facility for the Chronically III
R( CFCI), as defined in Title 22, section 87801(r)(5) of the California Code of
Regulations;
2. Currently serve at least one qualified resident;
3. Be in good standing with CCLD or certify that the capital project funds will bring
them into good standing, defined as licensees in "substantial compliance" with
licensing statues and regulations per Title 22, sections 80001(s)(8), 81001(s)(8),
87101(s)(9), and 87801(s)(7) of the California Code of Regulations; and
4. Have a critical gap in their financial ability to make the needed repairs or
upgrades, placing the facility at risk of closure or at risk of reducing the number of
beds for qualified residents.
Facilities may certify that they meet these eligibility criteria through a written statement
or attestation as part of the application process. Although counties may request further
documentation when needed, CDSS encourages counties to develop streamlined and
low-barrier applications to facilitate timely awards.
To accept funds, facilities must also meet the following conditions throughout
implementation:
1. Use funds in accordance with the eligible uses outlined in Article II, as well as the
program requirements outlined in Article IV and throughout this NOFA.
2. Agree to continue serving applicants or recipients of SSI/SSP and CAPI.
3. Agree to prioritize applications from qualified residents currently experiencing or
at risk of homelessness.
4. Remain in good standing with CCLD.
Note: Counties may require that facilities receiving CP funds include a deed restriction
on the property that the facility be used to provide licensed adult and senior residential
care for a period of time specified by the county. CDSS recommends counties include a
deed restriction of 5 years or the length of time the county determines appropriate,
relative to the amount of funds awarded to the facility. For example, it may be
appropriate to require deed restriction for more than 5 years when a facility receives CP
funds in excess of$250,000.
Although CDSS recommends a deed restriction, in some cases it may not be feasible
for the operator to agree to a deed restriction. For example, operators receiving CP
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funds may not be able to agree to a deed restriction when the operator does not own
the facility. In those cases, the county should include another form of agreement
specifying the operator will continue to serve the qualified population and prioritize
people experiencing or at risk of homelessness, as appropriate.
Counties shall monitor adherence to these requirements and ensure that facilities
continue to meet the standards outlined above throughout program implementation.
Counties will also be required to report on adherence to these requirements through
regular program reports, as further described in Section 401.
Section 203 — Ineligible OSP or CP Recipients
Facilities vendored by regional centers are not eligible for OSP or CP funds.
Section 204 — Facility Prioritization Criteria
Counties shall distribute funds to facilities in a manner that supports the overall goal to
preserve eligible facilities and increase beds for qualified residents and the prioritized
population. Counties shall use the following criteria to prioritize eligible facilities for CCE
Preservation Funds:
1. Facilities at the highest risk of closure that can be prevented through OSP or CP
funds.
2. Facilities with the highest percentage or number of qualified residents served.
In addition to the criteria outlined above, counties may establish additional facility
prioritization criteria to address local needs and the overall goals of the CCE
Preservation Program.
Information on prioritization will be requested as part of the Implementation Plan.
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Section 205 — Eligible/Ineligible Expenditures
A. County Uses for OSP and CP:
• Funds must be used to supplement, not supplant, other funding available from
existing local, state, or federal programs or grants with similar purposes (i.e.,
existing funds used to support the prioritized population).
• County administrative costs must be minimized, not to exceed 10 percent.
• The remaining funds outside of administrative costs are to be distributed to the
eligible and selected licensed adult and senior care facilities.
B. Eligible OSP Facility Costs:
Operating costs are associated with the day-to-day physical operation of the qualified
setting. The OSP is intended to help facilities cover facility operating deficits. These
settings often have costs that exceed the revenue totals each month when they are
caring for individuals applying for or receiving SSI/SSP or CAPI. Funds must be used to
supplement, not supplant, any existing funds used to support the prioritized population.
Eligible uses of OSP funds may include the following:
• Utilities, including heating, water, sewer, telephone, broadband and internet, and
common area utilities
• Maintenance and repairs, including supplies, trash removal, snow removal, pest
control, grounds upkeep and landscaping, and painting
• Staff and payroll costs required to sufficiently operate the licensed facility,
including administrative, maintenance, and security staff/payrolls; staffing costs
must be attributed to the facility as a whole and not in direct service or support of
any single individual
• Marketing and leasing, including advertising, credit investigations, and leasing
fees
• Taxes and insurance, including real estate taxes and property insurance
• Office supplies and expenses
• Accounting, such as tax filings, audits, and reporting to investors associated with
the operation of the qualified facility
• Strategic planning and coordination with local health, social services, or
homelessness systems of care to support sustainable long-term facility
operations
Refer to Section 101 for more information about how to determine a facility's OSP.
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C. Excluded OSP Facility Costs:
Expenses that are not eligible to be covered by the OSP funds include the following:
• Expenses unrelated to operational costs
• Sponsor distributions
• Expenses or fees related to change in ownership, limited partner buyout,
substitution, or assignment of ownership interest
• Expenses or fees related to tort or contract liability
D. Eligible CP Facility Costs:
CP funds can be applied to physical repairs and upgrades on an approved facility's
property, inside or outside the facility, within its property line. Funds must be used to
supplement, not supplant, any existing funds used to support the prioritized population.
Examples of common allowable costs could include but are not limited to the following:
• Weather stripping repair
• Outdoor activity space upgrades
• Perimeter fencing
• Delayed egress
• Repairs to holes in walls
• Signal system upgrade (e.g., egress and ingress systems, signals/alarms on
doors, integration to personal emergency responses systems)
• Elevator repairs
• Water damage repairs
• Appliance upgrades
• Furniture upgrades
• Locked storage area upgrades
• Fire protection upgrades
• Fire alarm systems upgrades
• Employee accommodations upgrades (e.g., break rooms)
• First aid supply upgrades
• Windows and screens repair and upgrades
• Carpet and flooring upgrades
• Interior paint upgrades
• Roof repairs or replacement
• ADA upgrades and other upgrades to improve mobility and accessibility
• HVAC repairs
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• Repairs or upgrades to bedrooms, bathrooms and showers, common areas,
kitchens (note: repairs or upgrades may not increase square footage of the
facility)
• Seismic upgrades to applicable facility types with two stories or more
• Solar panel purchasing, installation, and other upgrades that will reduce long-
term operating costs
• Other sustainable/green or energy-efficient building upgrades
Capital projects may include physical repairs or upgrades that will prevent the facility
from closure and place the facility back in good standing with CCLD, when applicable.
E. Excluded CP Facility Costs:
Expenses that are not eligible to be covered by the CP funds include the following:
• Foundations for leased properties
• Projects that would expand or create a new usable space that would increase the
square footage of the facility (see the CCE Capital Expansion RFA on the
Improving California's Infrastructure website)
• Provision of services
• Operating costs (facilities should apply for OSP funds if they have operating cost
needs)
Section 206 — County Allocations
The following table lists the one-time allocation amounts available for all counties with
current licensed facilities serving qualified residents according to CCLD.
Director's Certification to accept the base allocation must be submitted in the web
portal by July 15, 2022. Counties should review Section II for instructions on how to
accept funds.
OSP CP OSP CP
County Allocation Allocation County Allocation Allocation
Alameda $1,519,607 $4,136,116 Placer $200,000 $534,669
Alpine - - Plumas - -
Amador $200,000 $200,000 Riverside $1,779,052 $4,842,283
Butte* - - Sacramento $2,416,546 $6,577,434
Calaveras $200,000 $ 200,000 San Benito* - -
San
Colusa - - Bernardino $2,787,182 $7,586,243
Contra
Costa $1,189,741 $3,238,276 San Diego $3,346,842 $9,109,544
San
Del Norte - - Francisco $1,497,369 $4,075,588
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OSP CP OSP CP
County Allocation Allocation County Allocation Allocation
El Dorado $200,000 $200,000 San Joaquin $1,337,996 $3,641,800
San Luis
Fresno $1,100,789 $2,996,162 Obispo $200,000 $373,259
Glenn $200,000 $200,000 San Mateo $819,105 $2,229,468
Santa
Humboldt $200,000 $200,000 Barbara $263,151 $716,254
Imperial $200,000 $413,612 Santa Clara $1,619,679 $4,408,495
Inyo* - - Santa Cruz $478,120 $1,301,363
Kern $830,224 $2,259,732 Shasta $200,000 $373,259
Kings $200,000 $200,000 Sierra - -
Lake $200,000 $200,000 Siskiyou $200,000 $200,000
Lassen $200,000 $200,000 Solano $574,486 $1,563,654
Los Angeles $19,654,821 $53,497,135 Sonoma $340,985 $928,104
Madera $200,000 $242,114 Stanislaus $1,515,901 $4,126,028
Marin $218,675 $595,197 Sutter $544,835 $1,482,949
Mariposa - - Tehama $218,675 $595,197
Mendocino $200,000 $200,000 Trinity $200,000 $200,000
Merced $200,000 $232,026 Tulare $448,469 $1,220,659
Modoc - - Tuolumne $200,000 $200,000
Mono - - Ventura $563,367 $1,533,389
Monterey $644,906 $1,755,327 Yolo $200,000 $282,466
Napa $200,000 $200,000 Yuba $200,000 $200,000
Nevada $200,000 $200,000 TOTAL $54,747,179 $142,488,003
Orange $4,636,655 $12,620,199
*Counties marked with an asterisk have licensed facilities, but the allocation
methodology used did not match the licensed facilities (not vendored by regional
centers) with any recipients or applicants of SSI/SSP or CAPI. If the county is aware of
eligible adult and senior care facilities not funded by regional centers that are currently
serving recipients or applicants of SSI/SSP or CAPI, a base allocation of $200,000 may
be requested by contacting cce.preservation(@ahpnet.com by July 15, 2022.
Note: CDSS is in the process of developing guidelines and funding available for tribes,
which will be outlined in a separate correspondence.
Article III - County Program Implementation Requirements
Section 301 - County Implementation Plan
Counties accepting OSP and CP will be responsible for the administration,
dissemination, and monitoring of the CP and OSP grant funds. Counties may select a
third-party administrator to facilitate and manage the disbursement of funds. Counties
accepting funds are required to submit an Implementation Plan describing how they will
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operationalize the CCE Preservation Funds. An initial or draft Implementation Plan is
due by October 15, 2022. Counties may submit amended or final Implementation Plans,
including approvals by County Board of Supervisors (if required by the county's funding
approval processes), no later than January 15, 2023.
The Implementation Plan shall include, but is not limited to, the county's plan to
• Design and implement an application process and/or allocation methodology for
OSP and/or CP funds, as applicable;
• Incorporate prioritization criteria into fund distribution process; and
• Monitor use of funds and outcomes in accordance with the guidelines outlined in
this section.
AHP will review Implementation Plans as they are received to confirm they are complete
and consistent with state guidelines. If needed, AHP will request a consultation with the
county to solicit additional information or request edits to the Implementation Plan to be
consistent with state guidelines outlined in this letter.
It is important that the county strategy for design and review of eligible CCE
Preservation Fund projects is co-designed with persons with lived experience consistent
with the county's identified priority populations, which may include, but are not limited to,
persons with lived experience of homelessness, behavioral health and/or substance use
disorders; people with disabilities; and with other marginalized communities including
Black, Indigenous, and people of color (BIPOC) at risk of or experiencing
homelessness. County agencies should rely on local data to account for racial inequities
and disparities experienced by persons experiencing homelessness in the application
evaluation process. Early engagement of key stakeholders with lived experience is
essential for establishing equity as the foundation for these settings.
Counties must budget the program appropriately to ensure facilities with the greatest
risk of closing and serving the highest proportion of qualified individuals have access to
the CCE Preservation Program OSP and CP funds. Counties must minimize
administrative costs while maximizing OSP and CP funds to facilities.
Section 302 — Fund Disbursement
The fund disbursement process for counties is outlined below. For the purposes of this
section (Section 302 — Fund Disbursement), "subgrantee" refers to the facility (e.g.,
ARF, RCFE) receiving CP or OSP funds from a county grantee. Additional details will
be included in the Standard Agreement issued by AHP upon county acceptance of
funds. Please also see Addendum A for examples of various scenarios for CP fund
disbursement.
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A. Disbursement of OSP Funds to Selected Facilities:
Counties shall follow established county procurement, invoicing, and reimbursement
processes and execute formal agreements or contracts with the approved subgrantees
to govern the use of the Preservation OSP funds. A Funding and Disbursement
Agreement (FDA) is one example of the kind of document that could be issued by
counties in this context. Agreements must be executed between the county department
providing the funds and the approved facility receiving funds. Execution of the grant
agreement award shall not automatically trigger a disbursement of funds.
County agreements with subgrantees should, at minimum, delineate the following:
• The subgrantee's reporting responsibilities, including key metrics and data (see
Section 401)
• The uses of OSP funds.
• The conditions under which OSP funds may be accessed.
• The procedures and approvals needed for accessing OSP funds.
• Per WIC section 18999.97(f), a requirement that the facility be deed restricted to
provide licensed adult and senior residential care for at least the length of time
the county will provide OSP.
• Any conditions that would cause repayment of funds or cancellation of future
budgeted funds.
• A requirement that facilities in receipt of CCE Preservation Program grant funds
provide their annual audit within 90 days of the end of their fiscal year, if
applicable. If a subgrantee meets the threshold for a federal single audit, a copy
of the most recent single audit must be provided. Note: any entity expending
$750,000 or more of federal funds in a fiscal year is required to have an annual
single audit per the federal Super Circular Uniform Guidance (45 CFR Part 75).
• Required reporting, including reporting any material events such as change of
key staff, lawsuit filed against the organization, etc. within 30 days of said event
occurring.
• A requirement that subgrantees indemnify the county against any claims, suits,
etc. that could be made against the entity.
As part of the OSP contract, a system should be established to manage the
disbursement of funds. Counties can work with subgrantees to determine frequency and
timing of disbursements as long as it is documented in the contract; however, counties
are responsible for ensuring that subgrantees continue to meet the program
requirements as outlined in this NOFA.
More specific details about contractual pass-through requirements for counties will be
outlined in the Standard Agreement upon contract execution with AHP. Detailed
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information about disbursement and contract management with subgrantees in receipt
of CCE OSP funds is also available through tailored TA upon request. To request TA,
contact cce.p reservation(oahon et.com.
B. Disbursement of CP Funds to Selected Facilities:
Counties shall follow established county procurement, invoicing, and reimbursement
processes, consistent with State Fiscal Recovery Fund (SFRF) requirements, and
execute formal agreements or contracts with the approved facilities to govern the use of
the CCE CP funds. Award and disbursement of CP funds requires an executed
agreement between the county and subgrantee. Execution of the grant agreement
award shall not automatically trigger a disbursement of funds.
County subgrantee agreements should, at minimum, delineate the following:
• The subgrantee's reporting responsibilities, including key metrics and data.
• Potential for requests of information from CDSS and AHP for ad hoc reports, or
other required documentation such as eligibility of qualified residents.
• The uses of CP funds.
• The conditions under which CP funds may be accessed.
• The procedures and approvals needed for accessing CP funds, including details
on the disbursement and construction draw approvals process.
• The requirements of an open- or closed-bid process.
• Any conditions that would cause repayment of funds or cancellation of future
budgeted funds.
• A requirement that facilities in receipt of CCE Preservation Program grant funds
provide their annual audit within 90 days of the end of their fiscal year, if
applicable. If a subgrantee meets the threshold for a federal single audit, a copy
of the most recent single audit must be provided. Note: any entity expending
$750,000 or more of federal funds in a fiscal year is required to have an annual
single audit per the federal Super Circular Uniform Guidance (45 CFR Part 75).
• Required reporting, including reporting any material events such as change of
key staff, lawsuit filed against the organization, etc. within 30 days of said event
occurring.
• A requirement that subgrantees indemnify the county against any claims, suits,
etc. that could be made against the entity.
• If applicable, the requirement of a deed restriction to provide licensed residential
care for a period of time designated by the county.
Counties shall follow their standard disbursement and construction draw processes
while ensuring all of the following components required by state and federal regulations,
including SFRF requirements, are included in those processes:
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• Qualification statements from construction professionals that have been reviewed
and approved
• Final plan and cost review that has been approved
• Final, stamped plans and specifications
• Final executed contract and project budget (schedule of values)
• Project scope and timeline
• All final permits
• Prevailing wage attestation
• Payment and performance bond or executed letter of credit
More specific details about contractual pass-through requirements for counties will be
outlined in the Standard Agreement upon contract execution with AHP. Detailed
information about disbursement and contract management with facilities in receipt of
CCE Preservation Program funds is also available through tailored TA upon request. To
request TA, contact AHP at cce.preservation(a_ahpnet.com.
C. Management of CP Funds with Selected Subgrantees:
Counties accepting CP funds will be required to outline how they will manage the funds
via the Implementation Plan. Counties are strongly encouraged to reach out to
cce.preservation(@ahpnet.com if they require TA in implementing the management of
CP funds with selected subgrantees.
Counties will be required to describe their intended CP fund management processes in
their Implementation Plan, subject to review and approval by AHP. The description must
include how the county or third-party administrator will manage the CP application and
fund disbursement process. It must also describe circumstances as to when the
subgrantee (i.e., facility) would be allowed to manage the construction/rehabilitation
project independent of direct oversight from the county or third-party administrator. The
county should carefully consider this option to determine when it is appropriate to allow
a facility to manage the construction project directly. The county shall only allow this
option when the county can ensure that the entity awarded is capable of sufficiently
managing the construction process oversight from start to completion. Considerations of
a subgrantee's ability to sufficiently manage the process may include the cost of the
project, the complexity of the project, or the subgrantee's previous development
management experience. Counties considering this option should weigh the risks of
individual subgrantee management on a case-by-case basis.
Regardless of how the county decides to manage the funds, the county has ultimate
responsibility for compliance with the funding instructions attached to this NOFA.
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Counties will be required to include the following details about CP fund management in
their Implementation Plan, subject to review and approval by AHP:
• Attestation of the county's capacity and ability to manage the CP application
process for construction as part of their Implementation Plan. The county should
include detailed administrative plans for project management tasks such as
developing and managing a scope of work, general contractor engagement,
construction project management, close out, and regular project status reporting.
If the county choses to contract administration of this program to a third-party
entity, this must be indicated in the Implementation Plan and accompanied by the
agreement or contract that outlines oversight plans and expectations.
• Assessment of subgrantee financial feasibility and adherence to program
requirements to ensure subgrantees have sufficient staff capacity and financial
resources (i.e., working capital/liquidity) to manage the facility during and after
construction.
• Clarification of the process, documentation, and approval requirements that will
trigger the fund disbursement for approved CP projects.
• Review of the subgrantee's plan to relocate residents (if needed) to maintain
levels of care during the capital preservation project period.
• Identification of necessary metrics and dedicated staff for proper monitoring of
the CP fund disbursements.
• Development and management of the CP draw process for construction, which
includes
o Verifying all contractors and subcontractors are meeting prevailing wage
standards for a public works project and
o Identifying a process to track change orders.
• Management of post-construction compliance, financial accountability, reporting,
and documentation per the requirements of CCE Preservation funding
• Monitoring of subgrantee projects during the 5-year compliance period
• Management and retention of all project, monitoring, and reporting
documentation for the required archival period.
To further mitigate construction risks, it is recommended general contractors registered
with the California Department of Industrial Relations (DIR) provide the following
documents to counties:
• Payment & Performance (P&P) Bond: A P&P bond is required for all
construction projects of $1 ,000,000 or more. The bond must be issued by a rated
company, for both payment and performance, as Dual Obligee with the county or
its designee as additionally insured. Any exception to this must be stated within
the grant agreement and be approved by the State.
• Letter(s) of Credit: In the event a project is small, or the risk is determined to be
low, an irrevocable letter of credit may be accepted in lieu of a P&P bond.
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• Certification of Compliance: General contractors must submit a certification of
compliance to the awarding county department certifying that the construction
contractor shall comply with California's prevailing wage and working hours laws
(including posting job notices, as required by Labor Code section 1720). From
time to time, additional documents that are not stated here may be required,
depending on the unique risks of the transaction.
• Prevailing Wage Attestation: Contractors provide this to the administering
oversight body as part of the contract execution process, certifying compliance
with California's prevailing wage and working hours laws and all applicable
federal prevailing wage laws.
Additional documents that are not stated here may be required depending on the unique
risks of the transaction.
Section 303 — Preservation Capital Projects Funding Match
Counties are required to match at least 10 percent of the CP funds accepted and
awarded to them. Match may be provided by the county or contributed in whole or in
part by the subgrantee awarded CP funds. However, counties are responsible for
ensuring that the 10 percent match is met. For example, a county awarding a project
that will cost $50,000 could contribute $5,000 in county American Rescue Plan Act
(ARPA) funds to the project or require that the applicable subgrantee contribute $5,000
in cash to the project.
Note: Match is not required for OSP funds.
Counties will describe their proposal for matching CP funds in the Implementation Plan,
including identifying whether the county will provide the match itself or whether all or a
portion of the match will be contributed by facilities awarded CP funds. Counties will
also be required to certify that match requirements will be met and include any match
sources committed to this contract in the Standard Agreement executed with AHP. If
facilities will be required to contribute any part of the match, this must also be outlined in
the Standard Agreement with the county.
Match in the form of cash and in-kind contributions, including the real costs previously
incurred by a project, will be allowed. All "in-kind" amounts must be well documented
and notarized. CDSS must approve all match sources that are not described below.
Cash match may come from
• ARPA funds granted to counties and cities,
• Local funding,
• Mental Health Services Act funds in the 3-year plan (considered "other local"),
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• Foundation/philanthropic support,
• Loans or investments,
• Cash on hand, and
• Incentive payments from managed care plans
"In-kind" match may be in the form of
• Sunk costs directly related to a development project, or costs directly related to a
development project that have already been incurred and cannot be recovered,
with documentation of paid invoices for professional services related to pre-
development of the specific grant application, as approved on a case-by-case
basis by CDSS. Any match claimed under sunk cost must supplement, not
supplant, other fund sources.
• Donations of professional design-build services, materials directly related to the
development project.
Services to clients will not be allowed as match. State general funds may not be used
as match.
Section 304 — Service Use Terms
For the purpose of this section, "service use terms" means a deed restriction on the title
of the property, safeguarding the property for purposes consistent with the grant for the
duration of the contract performance period. A deed restriction must be recorded on the
title to the property before the county can approve any OSP payments. As such, facility
operators that are leasing the property must obtain the owner's consent for the deed
restriction. The county, at their discretion, may also require that a deed restriction be
recorded on the title to the property before approving CP projects. However, deed
restrictions are required by statute for only those facilities in receipt of OSP funds.
Article IV — Preservation Program Requirements
Section 401 — Data Collection and Reporting
A. Data Reports:
Counties will be required to report on items related to use of funds and number of beds
preserved. Examples of OSP and CP data collection items may include, but are not
limited to, the following:
• The number of facilities requesting OSP or CP reimbursement and amount of
funds requested
• The number of facilities receiving funds and amount of funds awarded
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• The number of retained residents who are receiving or applying for SSI/SSP or
CAPI benefits
• The total number of residents, the number of current qualified residents, and any
new qualified residents who move into the facility
• A brief description of how the CP or OSP funds were used to benefit the qualified
residents and prioritized population
B. The HUB — Data Reporting System:
The HUB is a data portal that will be made available to all counties, through AHP, for
the purpose of reporting data and meeting programmatic as well as federal fiscal
reporting requirements. Each county will then provide subgrantee facilities with a
separate secure portal for uploading and providing all required monitoring information.
The site will also provide business-hour access to liaison staff who can answer
questions related to the completion of required forms.
C. American Rescue Plan Act (ARPA) Data Reporting Requirements:
Counties will be required to follow the U.S. Treasury Department rules on ARPA uses,
data collection, and reporting requirements. CDSS reports expenditures and outcomes
on behalf of grantees, and requested information included in the reporting is subject to
change.
Section 402 — Monitoring and Program Oversight
As recipients of state and federal funding from pass-through entities (CDSS and AHP),
counties are responsible for compliance with federal and state regulations attached to
the funding accepted, including fund administration, fiscal and project management,
reporting, and compliance monitoring.
Each participating county department will be responsible for managing the day-to-day
operations of its CCE Preservation Funds program, including establishing methods,
processes, and procedures to determine best practices for the efficient delivery of CCE
Preservation Funds. Counties will likewise be expected to ensure that these funds are
used in accordance with program requirements and written agreements and to take
appropriate action, should any performance problems arise. County procedures must
include a corrective action plan for assessing risk of activities and projects and for
monitoring facilities to ensure that the requirements in this section are met.
Each county must, insofar as is feasible, distribute CCE funds geographically within its
boundaries, according to the priorities of needs identified by the county analysis of
facilities at highest risk for closure serving qualified residents.
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The county shall be subject to monitoring by CDSS, its contractor AHP, and/or its
community development financial institution (CDFI) subcontractor for compliance with
the provisions of this NOFA and the executed contract. Such monitoring activities may
include, but are not limited to, inspection of the county's grantees' and/or subgrantees'
services, procedures, books, and records, as CDSS or AHP deems appropriate. CDSS
or AHP may conduct monitoring activities at any time during the county's contractors'
and/or subcontractors' normal business hours. CDSS may conduct a review of the
county's contractors' and/or subcontractors' records to determine if any of the claimed
expenditures were an improper use of grant funds.
Article V — Authorizing and Applicable Law
Authorizing law for CCE Preservation OSP and CP: Assembly Bill (AB) 172 (Chapter
696, Statutes of 2021
Section 501 — Federal and State Program Requirements
A. ARPA:
Counties will be required to follow the Treasury rules on ARPA uses, data collection,
and reporting requirements.
B. Reporting Requirements:
Reporting requirements will include quarterly reports and a final report, along with an
annual CCE Preservation Program and Expenditure Report. The annual report will be
due no later than January 31, for the prior calendar year of January 1 to December 31.
The reports and data entered in the HUB data portal shall be in such form and contain
such information as required by CDSS, as appropriate, in its sole and absolute
discretion.
These requirements will be fully detailed upon award. In addition to the foregoing, each
county shall submit to CDSS or AHP such periodic reports, updates, and information as
deemed necessary by CDSS to monitor compliance and/or perform program evaluation.
Any requested data or information shall be submitted electronically in a format provided
by CDSS or its administrative entity, AHP. Additional reporting requirements may be
required by CDSS for up to the applicable service use terms after completion of project
construction.
C. Prevailing Wage:
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All "projects" that receive preservation capital funds over $1 ,000 must utilize Prevailing
Wage Rates as defined by the Prevailing Wage Law (Labor Code section 1720, et
seq.). It is the contractor's responsibility to abide by the apprenticeship requirements
and reporting under that law. Projects are subject to compliance monitoring and
enforcement by DIR. County departments will be required to submit a Certification of
Compliance to AHP as part of the contract execution process, certifying that the county
shall comply with all applicable local, state, and federal prevailing wage and working
hours laws. The Certification of Compliance will also state that the county shall maintain
its labor records in compliance with all applicable local, state, and federal laws, and
shall make all labor records available to DIR and any other applicable enforcement
agencies upon request.
D. Local Building Codes:
All preservation and construction projects must meet state or local residential and
building codes, as applicable, or, in the absence of a state or local building code, the
International Residential Code or International Building Code (as applicable to the type
of housing) of the International Code Council. The housing must meet the applicable
requirements upon project completion.
E. Reasonable Costs:
Consistent with county procurement processes, each county shall ensure there is a
systematic process in place for determining and confirming "reasonable costs" within
and throughout each project, as well as a systematic check-and-balance method for
distributing funds to facilities.
F. Land Use Exemption:
Any project that receives CCE Preservation Program funds shall be deemed consistent
and in conformity with any applicable local plan, standard, or requirement, and any
applicable coastal plan, local or otherwise, and allowed as a permitted use, within the
zone in which the structure is located, and shall not be subject to a conditional use
permit, discretionary permit, or to any other discretionary reviews or approvals, and
shall be deemed a ministerial action under the California Environmental Quality Act
(CEQA) (Public Resources Code section 21080) and under section 15268 of Title 14 of
the California Code of Regulations (WIC section 18999.97(I); see also CEQA
Guidelines).
G. Low-Rent Housing Project Exemption:
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
In accordance with WIC sections 5960.35(b)(1) and 18999.98, a project funded with a
CCE grant shall not be considered a "low-rent housing project," as defined in Section 1
of Article XXXIV of the California Constitution, if the project meets any one of the
following criteria:
• The project is privately owned housing, receiving no ad valorem property tax
exemption, other than exemptions granted pursuant to subdivision (f) or (g) of
section 214 of the Revenue and Taxation Code, not fully reimbursed to all taxing
entities, and not more than 49 percent of the dwellings, apartments, or other
living accommodations of the project may be occupied by persons of low income.
• The project is privately owned housing, is not exempt from ad valorem taxation
by reason of any public ownership, and is not financed with direct long-term
financing from a public body.
• The project is intended for owner-occupancy, which may include a limited-equity
housing cooperative as defined in section 50076.5 of the Health and Safety
Code, or cooperative or condominium ownership, rather than for rental-
occupancy.
• The project consists of newly constructed, privately owned, one-to-four-family
dwellings not located on adjoining sites.
• The project consists of existing dwelling units leased by the state public body
from the private owner of these dwelling units.
• The project consists of the rehabilitation, reconstruction, improvement, or
addition to, or replacement of, dwelling units of a previously existing low-rent
housing project, or a project previously or currently occupied by lower-income
households, as defined in section 50079.5 of the Health and Safety Code.
• The project consists of the acquisition, rehabilitation, reconstruction,
improvement, or any combination thereof, of a project which, prior to the date of
the transaction to acquire, rehabilitate, reconstruct, improve, or any combination
thereof, was subject to a contract for federal or state public body assistance for
the purpose of providing affordable housing for low-income households and
maintains, or enters into a contract for federal or state public body assistance for
the purpose of providing affordable housing for low-income households.
If a project funded with a CCE grant is a "low-income housing project" as defined by
Section 1 of Article XXXIV of the California Constitution but does not meet any of the
criteria listed above, then the applicant shall comply with the requirements set forth in
that section of the California Constitution.
H. State and Federal Relocation Assistance:
As applicable, all projects must comply with federal and state laws pertaining to
relocation assistance and protections that must be provided to people who move as a
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Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
result of government-funded projects (California Government Code (GOV) sections
7260-7277; 42 U.S.C. section 4601 et seq.).
Section 502 — Collaboration, Racial Equity, and Fair Housing
A. Collaboration:
Counties are strongly encouraged to collaborate with other partners, such as local
behavioral health and emergency response systems, local Medi-Cal managed care
plans, legal aid organizations, and other relevant networks, to maximize available
funding to preserve residential facilities, increase referrals, coordinate care, and
maximize resources and available supportive services. Information on these
collaborations will be requested in future program updates. Counties may not supplant
the CCE Preservation Funds with any other funding sources such as the Assisted Living
Waiver program or other service use funding provided by the county or other programs.
B. Racial Equity:
It is important that the county department address racial disparities in program design,
development, and implementation. It is vital to have early engagement with
stakeholders with lived experience of homelessness or mental and/or substance use
disorders, people with disabilities, and with other marginalized communities including
BIPOC at risk of or experiencing homelessness. County departments should rely on
local data to account for racial inequities and disparities experienced by persons
experiencing homelessness in the application evaluation process and/or allocation
methodology.
C. Fair Housing:
Additionally, per Government Code section 8899.50, each county must also operate its
CCE program in a manner that affirmatively furthers fair housing. This means that CCE
must be operated in a way that takes "meaningful actions, in addition to combating
discrimination, that overcome patterns of segregation and foster inclusive communities
free from barriers that restrict access to opportunity based on protected characteristics."
Counties should review the reports and resources below for examples of how housing
and homelessness programs have incorporated racial equity into programming.
Counties are encouraged to seek meaningful input and participation from current and
former SSI/SSP or CAPI recipients or applicants, including individuals of color, that go
beyond identifying disparities to identify causes of such disparities from individuals with
lived experience. Additionally, CDSS or AHP will provide TA opportunities to help
counties address racial equity within the CCE program.
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Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
Reports
• Racial Inequalities in Homelessness, by the Numbers
• Supporting Partnerships for Anti-Racist Communities (SPARC) Phase One Study
Findings
• A Brief Timeline of Race and Homelessness in America
• Report and Recommendations of the Ad Hoc Committee on Black People
Experiencing Homelessness
Resources
• Equity-Based Decision-Making Framework
• Framework for an Equitable COVID-19 Homelessness Response
• Advancing Racial Equity through Assessments and Prioritization (HUD)
• California Department of Housing and Community Development's Guidance on
Affirmatively Furthering Fair Housing
• California Business, Consumer Services and Housing Agency's Homeless Data
Integration System
Key Definitions
Qualified resident: For the purpose of this NOFA, per the state statute, applicants or
recipients of the Supplemental Security Income/State Supplementary Payment
(SSI/SSP) pursuant to Subchapter 16 (commencing with Section 1381) of Chapter 7 of
Title 42 of the United States Code and Welfare and Institutions Code (WIC) section
12000 et seq., and applicants or recipients the Cash Assistance Program for Immigrants
(CAPI) pursuant to WIC section 18937 et seq., who need the care and supervision that
is provided by the licensed facility that receives the grant. "Qualified resident" shall not
include SSI/SSP or CAPI applicants or recipients who are receiving services through a
regional center.
Prioritized population: Qualified residents who are experiencing, or at risk of
experiencing, homelessness.
Adult Residential Facility (ARF): "ARF" has the same meaning as in Title 22 of the
California Code of Regulations Section 80001: "any facility of any capacity that provides
24-hour-a-day nonmedical care and supervision to the following: (A) persons 18 years
of age through 59 years of age; and (B) persons 60 years of age and older only in
accordance with Section 85068.4."
Residential Care Facility for the Elderly (RCFE): "RCFE" has the same meaning as
in Title 22 of the California Code of Regulations Section 87101: "a housing arrangement
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
chosen voluntarily by the resident, the resident's guardian, conservator or other
responsible person; where 75 percent of the residents are sixty years of age or older
and where varying levels of care and supervision are provided, as agreed to at time of
admission or as determined necessary at subsequent times of reappraisal. Any younger
residents must have needs compatible with other residents."
Residential Care Facility for the Chronically III (RCFCI): "RCFCI" has the same
meaning as in Title 22 of the California Code of Regulations Section 87801 : "any place,
building, or housing arrangement which is maintained and operated to provide care and
supervision to all or any of the following: (A) Adults with HIV disease or AIDS, (B)
Emancipated minors with HIV disease or AIDS, or (C) Family units as defined in Section
87801(f)(1) with adults or children or both with HIV disease or AIDS."
California Prevailing Wage: The director of the Department of Industrial Relations
(DIR) determines the general prevailing rate of per diem wages in accordance with the
standards set forth in Labor Code section 1773. (Labor Code section 1770). Except for
"public works," "projects" of one thousand dollars ($1,000) or less, not less than the
general prevailing rate of per diem wages for work of a similar character in the locality in
which the public work is performed, and not less than the general prevailing rate of per
diem wages for holiday and overtime work fixed as provided in this chapter, shall be
paid to all workers employed on public works. (Labor Code section 1771). Prevailing
wage is applicable only to work performed under contract, including contracts let for
maintenance work, and is not applicable to work carried out by a public agency with its
own forces.
Capitalized Operating Subsidy Reserve (COSR [for OSP]): Capitalized
operating subsidy reserve means an interest-bearing account maintained by the
qualified grantee, the residential adult or senior care facility, or a third-party entity
created to cover potential or projected operating deficits on a facility that is deed
restricted to provide licensed residential care for at least the term of the reserve. The
department shall develop guidelines on the qualified grantees' use of COSRs to ensure
safeguards for those reserves, based on use in other state programs.
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
Acronyms
AHP Advocates for Human Potential, Inc. — CDSS's third-party contractor
ARF Adult Residential Facility
ARPA American Rescue Plan Act
CAPI Cash Assistance Program for Immigrants
CCE Community Care Expansion
CCLD Community Care Licensing Division
CDFI Community Development Financial Institution
CDSS California Department of Social Services
CEQA California Environmental Quality Act
CP Capital Projects
FDA Funding and Disbursement Agreement
OSP Operating Subsidy Payments
RCFCI Residential Care Facility for the Chronically III
RCFE Residential Care Facility for the Elderly
SFRF State Fiscal Recovery Fund
SSI/SSP Supplemental Security Income/State Supplementary Payment
Addendum A
Examples of CCE CP Fund Disbursement Procedures
Counties shall follow established county procurement, invoicing, and reimbursement
processes, consistent with SFRF requirements, and execute formal agreements or
contracts with the approved subgrantees to govern the use of the CCE CP funds.
The program management responsibility includes, but is not limited to, ensuring
program compliance per the funding source, both for project delivery costs and within
each awarded construction project; financial management, including management of the
approved administrative budget and grant/loan budget, for each subgrantee by funding
source; required data reporting and data retention, documentation, and recordkeeping
per CDSS and federal specifications, both for the program and for each subgrantee;
and the performance of the program according the county's approved Implementation
Plan, budget, and unit completion goals.
The following scenarios are offered as examples in the absence of an established
county process. If TA is needed to establish fund disbursement procedures, please
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Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
request support in the AHP CCE Preservation Acceptance web portal, or by email at
cce.preservation(@ahpnet.com. For the purposes of this section, "subgrantee" refers
to the facility or entity awarded CCE CP funds.
Scenario #1 — The county establishes the management of each project, including
bidding and supporting the selection of contractors and disbursement of funds for
rehabilitation/construction scopes of work. This also includes the direct management of
funds and contracts with trades and construction firms completing the approved
rehabilitation and reconstruction. In this scenario, the county would contract with trades
on behalf of the subgrantee (the ARF or RCFE) and act as project manager to monitor
the completion of the approved improvement/project.
In this scenario, the county operates in the role similar to that of a general contractor. If
a county uses this approach, the county department or agency administering the
program should have preexisting experience overseeing construction and development
projects of a similar size and complexity as the proposed projects to be funded with
CCE CP funds.
Note: It is recommended that the county leverage existing procurement and
management systems that currently govern similar capital projects such as HOME, the
Community Development Block Grant Program (CDBQ, or home improvement projects
where the county is designating funds for a specific project with restricted use. AHP can
provide TA upon request to assess and advise the applicability, scope, or feasibility of
using the county's existing systems for this project.
In this scenario, the county will work with the approved subgrantee (the ARF or RCFE)
to 1) develop a scope of work, 2) select a licensed and certified general contractor
through the county procurement process, and 3) manage the construction process. All
construction and rehabilitation contracts will be made between the subgrantee (ARF or
RCFE) and the general contractor, but the county will manage and disburse the funds
upon successful completion of the work.
Under this scenario, the construction management and funds disbursement will follow
these steps:
1. Site inspection and drafting the scope of work: Upon approval of allocated
grant funds, the county will conduct an initial site inspection by a certified
construction analyst. Based upon the inspection, the analyst will develop a
detailed draft scope of work and review it with the subgrantee.
2. Bidding and selecting a construction contractor: Upon approval of this initial
scope of work by the county and the subgrantee, the county will conduct a bid
conference on site with the subgrantee and interested construction contractors.
Within an acceptable period of time after the bid conference, contractors will
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Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
submit construction bids to the county. The county will meet with the subgrantee
to have them select their preferred construction contractor.
3. Finalizing scope of work: Upon selection of the construction contractor, the
scope will be finalized with the subgrantee, and an internal review and approval
package will be developed by county staff. Through the CCE program, the
subgrantee has been exempted from Environmental Review and an expedited
internal approval process for these grantees should be developed in
collaboration with other agencies, including the planning agency. Note: In this
scenario, funds are approved but not transferred or allocated directly to the
approved subgrantee. This allows the county to mitigate risk involving the use of
funds and ensure funds are being used in accordance with the program
requirements.
4. Signing agreements: When the above processes are complete, the subgrantee
is contacted to sign key documents, including the subgrantee agreement and the
construction contract.
5. Getting started: Approval of work begins, with county oversight. The contractor
is then provided with a Notice to Proceed, and construction can begin. Variance
between estimated construction cost at time of bidding and actual cost when
work begins can be mitigated through close collaboration between the
subgrantee and the county.
In the scenario described above, the county will be responsible for construction
management, close out, reviewing the facility's plan for the relocation of residents to a
commensurate level of care as necessary, warranty enforcement, and post-construction
responsibilities. Where there are already established residents whose service needs
may be impacted, the county will collaborate with the subgrantee to ensure disruptions
to continuity of care are minimized.
The county will ultimately be responsible for processing all applications from the stage
of submission through review, decision/approval, settlement, construction completion,
and ongoing program administration.
Scenario #2 — The county contracts with a third party for full management of
subgrantee awards
In this scenario, the contracted third party will be responsible for the steps outlined
above. County agencies with limited capacity to manage the CCE award and monitoring
requirements may want to consider contracting with a third-party organization
experienced in developing or rehabilitating residential care facilities to manage the
construction bidding, selection of contractors, development of the project scope of work,
bidding and validation of eligible expenditures, and final reporting with documentation
on use of funds and completion of intended and approved use. In this scenario, all
construction bidding processes, direct 1:1 oversight of projects to completion, and
35 `�'
Community Care Expansion Preservation Program
Operating Subsidy Payment and Capital Projects
Notice of Funding Availability
management of the draw review process could be the responsibility of a third party.
Subgrantee award agreements will be executed between the awarded subgrantee and
the county and managed with the assistance of a third party.
Scenario #3 — Subgrantee manages awarded funds
In this scenario, the county has determined the awarded subgrantee has the capacity
and ability to manage the capital preservation/rehabilitation project. Subgrantees with
prior experience rehabilitating or managing tenant improvements can manage the funds
either through their own staff or through a memorandum of understanding with an
experienced real estate developer or construction manager.
This scenario requires oversight by the county to ensure the subgrantee can document
their prior experience or capacity to manage these funds and bring projects to fruition.
Attestation of the subgrantee's ability and capacity to manage prevailing wage
oversight, provide regular accounting of the funds expended for eligible uses,
understand approvals and permitting needed, obtain these approvals and permits, and
report on key data points required by the CCE program is recommended. A system to
collect and monitor, including onsite inspection, will support the county to manage the
grant funds under this scenario.
36 ��
December 14, 2022
CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
EXECUTIVE SUMMARY
ALL COUNTY WELFARE DIRECTORS LETTER
The purpose of this letter is to notify All County Welfare Directors of a one-time
$55 million appropriation for Operating Subsidy Payments (OSPs) for the Community
Care Expansion (CCE) Preservation Funds as a result of the Budget Act of 2022
(AB 178, Chapter 45, Statutes of 2022). Additionally, counties that did not accept
allocations from the Notice of Funding Availability (NOFA) dated June 10, 2022, have
another opportunity to accept previously offered funds or indicate their interest in
program participation by submitting a Letter of Interest (LOI) no later than Wednesday,
January 25, 2023.
CALIFORNIA HEALTH & HUMAN SERVICES AGENCY y
DEPARTMENT OF SOCIAL SERVICES
CDSS 744 P Street • Sacramento, CA 95814 • www.cdss.ca.gov
KIM JOHNSON GAVIN NEWSOM
DIRECTOR GOVERNOR
December 14, 2022
TO: ALL COUNTY WELFARE DIRECTORS
FROM: HANNA AZEMATI, DEPUTY DIRECTOR
HOUSING AND HOMELESSNESS DIVISION
SUBJECT: NOTICE OF FISCAL YEAR (FY) 2022--23 AND FY 2021--22
COMMUNITY CARE EXPANSION PRESERVATION FUNDS FOR
COUNTIES
REFERENCE: ASSEMBLY BILL (AB) 178 (CHAPTER 45, STATUES OF 2022),
AB 172, COMMUNITY CARE EXPANSION PRESERVATION
NOTICE OF FUNDING AVAILABILITY DATED JUNE 10, 2022.
The purpose of this letter is to notify All County Welfare Directors of a one-time
$55 million appropriation for noncompetitive allocations of the Operating Subsidy
Payments (OSPs) for the Community Care Expansion (CCE) Preservation Funds as a
result of the Budget Act of 2022 (AB 178, Chapter 45, Statutes of 2022). These funds
are available in addition to funds previously announced in the Notice of Funding
Availability (NOFA) dated June 10, 2022.
Counties that did not accept funds in the first release through the NOFA dated
June 10, 2022 have another opportunity to accept previously offered funds as outlined
in Section V. Counties with populations under 200,000 who are interested but not able
to accept funds at this time may indicate interest in program participation by submitting
a Letter of Interest (LOI). The LOI process is outlined in Section VI. The deadline to
accept funds or submit an LOI is Wednesday, January 25, 2023.
This letter also notifies counties of two changes related to the funds announced in the
NOFA dated June 10, 2022, outlined further in Section II and Section III below including
a change in funding source for Capital Projects (CP) funds as well as the administrative
cost limits associated with CCE Preservation Funds.
All County Welfare Directors Letter
Page Two
The California Department of Social Services (CDSS) is contracting with Advocates for
Human Potential, Inc. (AHP), to serve as the third-party administrator for the CCE
program.
I. BACKGROUND
The CCE program was established by AB 172 (Chapter 696, Statutes of 2021) to fund
capital projects and promote the sustainability of residential adult and senior care
facilities and to address historic gaps in the long-term care continuum. The CCE
program provides funding for acquisition, construction, and rehabilitation to preserve
and expand adult and senior care facilities that serve people receiving or applying for
Supplemental Security Income/State Supplementary Payment (SSI/SSP) and Cash
Assistance Program for Immigrants (CAPI), including those who are experiencing or at
risk of homelessness.
The CCE Preservation Funds are for the immediate preservation of licensed
residential adult and senior care facilities serving applicants or recipients SSI/SSP or
CAPI, including those who are experiencing or at risk of homelessness. The CCE
Preservation Funds are divided into two components:
1) Operating Subsidy Payments (OSP) to fund operating subsidies to existing
licensed residential adult and senior care facilities serving qualified residents.
OSP funds can cover an eligible licensed facility's actual or projected
operating deficits.
2) Capital Projects (CP) to preserve facilities in need of critical repairs or
required upgrades, thereby potentially preventing facility closure, which could
result in exits to homelessness. Funds can be applied to physical repairs and
upgrades on an approved facility's property, including inside or outside the
facility, within its property line. The CP funds can also fund repairs needed to
ensure facilities are compliant with licensing standards.
The NOFA dated June 10, 2022, announced a total of $197.5 million in noncompetitive
allocations for all counties with eligible licensed residential adult and senior care
facilities. This funding was appropriated through the Budget Act of 2021. Counties were
required to accept or decline all or a portion of the OSP and/or CP allocation(s) via
Director's Certification by July 29, 2022. Through this process, thirty-five out of forty-
seven eligible counties accepted over $187 million in noncompetitive allocations.
Program requirements and guidance for the CCE Preservation Funds are outlined in the
NOFA dated June 10, 2022.
II. FY 2022-23 FUNDING AVAILABILITY
The Budget Act of 2022 appropriated an additional, one-time $55 million to fund OSPs.
CDSS will reserve up to five percent of the funds for state operations and
All County Welfare Directors Letter
Page Three
administration. The remaining $52,250,000 will be available to counties via a needs-
based allocation methodology, as reflected in Section IV.
A summary of total CCE Preservation funding amounts provided to counties in
FY 2021--22 and FY 2022--23 is outlined in the table below. The FY 2022--23 OSP
funds have the same expenditure deadlines as the FY 2021--22 OSP funds.
Additionally, the funding source for CP funds has changed from State and Local Fiscal
Recovery Funds (SFRF) to the state General Fund.
Purpose Match Funding Source and Allocated
Expenditure Timeline Amount
OSP — FY None State general funds must $52,250,000
2022--23 be obligated by
June 30, 2027, and
liquidated by
June 30, 2029
OSP — FY None State general funds must $54,747,179
2021--22 be obligated by
June 30, 2027, and
liquidated by
June 30, 2029
CP — FY 10% match State general funds must $142,488,003
2021--22 be obligated by
June 30, 2024, and
liquidated by
December 31, 2026
Total CCE Preservation $249,485,182
Funds
III. CHANGE TO ADMINISTRATIVE COST LIMIT
Previously, the NOFA dated June 10, 2022, required that counties minimize
administrative costs, not to exceed 10 percent. Based on the nature of the CCE
Preservation Program and the significant level of coordination, planning and oversight
required to implement the program, CDSS has increased the threshold of funding
that may be used for administrative activities from 10 percent to 15 percent.
All County Welfare Directors Letter
Page Four
Counties should continue to minimize administrative costs, not to exceed the 15 percent
limit. This threshold applies to all CCE Preservation Funds, including any CCE
Preservation Funds previously accepted via the NOFA dated June 10, 2022.
IV. UPDATED COUNTY ALLOCATIONS AND METHODOLOGY
Funding is available via a noncompetitive allocation for counties with qualifying facilities
(i.e., licensed facilities that are not funded by regional centers and that are currently
serving individuals who are applicants or recipients of SSI/SSP or CAPI). The
FY 2022--23 OSP Funds were distributed proportionate to each county's share of
statewide need. Statewide need is defined as the total number of beds in qualifying
facilities occupied by an applicant or recipient of SSI/SSP, according to CDSS'
Community Care Licensing Division (CCLD) survey data. Allocations are not available
via the FY 2022--23 non-competitive allocation for counties with no qualifying facilities.
Allocation amounts are listed in Attachment One.
V. PROCESS TO ACCEPT FUNDS
Counties wishing to accept the noncompetitive allocations in Attachment One, Tables 1
and/or 2 shall submit a signed and completed Director's Certification (Attachment Two)
to housing(aDdss.ca.gov. The Director's Certification is required for the county to accept
the remaining FY 2021--22 funds and/or the additional FY 2022--23 funds, regardless of
whether the county is newly participating or has previously accepted CCE Preservation
Funds. The CDSS will only accept Director's Certifications from the designated county
department that accepted the funds announced in the NOFA dated June 10, 2022.
Counties must accept or decline funds via the Director's Certification by
Wednesday, January 25, 2023.
Additional information for counties accepting funds for the first time
Any county that did not already accept funds announced in the NOFA dated
June 10, 2022, may accept funds in response to this funding announcement. Counties
must review the NOFA dated June 10, 2022, for further information on program
requirements and guidance.
Counties accepting funds for the first time may choose to accept funds for either OSP,
CP, or both. If both are accepted, a county must designate one county department to
implement both program components. Any county department is eligible to accept the
funds. Examples include, but are not limited to, social service departments, health
departments, aging or adult services, behavioral health departments, or housing and
community development departments. Counties are encouraged to contact
housing(a)-dss.ca.gov with any questions related to the funds acceptance process.
All County Welfare Directors Letter
Page Five
VI. LETTER OF INTEREST
The CDSS recognizes that many counties with populations under 200,000 did not
accept the allocations published in the NOFA dated June 10, 2022. Recognizing the
need to preserve licensed adult and senior care facilities across the entire state, CDSS
is accepting Letters of Interest (LOI) from counties with populations less than 200,000
who are interested in accepting CCE Preservation Funds but require additional supports
to do so, and are therefore not able to accept funds at this time.
If a county with a population of less than 200,000 is interested in implementing a CCE
Preservation program, but not currently able to accept CCE Preservation Funds, please
provide an LOI addressing the following elements:
I. Summary of county's interest and need for CCE Preservation Funds
II. Barriers preventing the county from implementing CCE Preservation Funds
III. Resources or supports that CDSS or AHP could provide to overcome these
barriers
Please submit LOls (no more than one LOI per county) by Wednesday, January 25,
2023, to housingCa-).dss.ca.gov.
The CDSS will review LOls to understand where additional technical assistance or
support is needed. The CDSS may request additional information to better understand
the barriers identified within LOls. Funding is not guaranteed through submission of an
LOI. Furthermore, an LOI is not required before submitting a Director's Certification.
Counties are encouraged to contact housing(a)dss.ca.gov with any questions regarding
the LOI process.
VII. UPDATED AWARD TIMELINE
The CDSS will issue award letters on a rolling basis within 45 business days of
receiving a completed Director's Certification.
The AHP will issue or amend a Standard Agreement (contract), as applicable following
the release of award letters. The Standard Agreement must be signed, submitted, and
fully executed with AHP before these additional OSP funds will be disbursed.
The NOFA dated June 10, 2022, requires that participating counties submit an
Implementation Plan by January 15, 2023. If a continuing county has already submitted
an Implementation Plan by the time additional funds are accepted, counties may amend
their plan, if needed. The CDSS does not anticipate significant changes in county
implementation plans based on this FY 2022--23 augmented funding. Further
instructions related to amended or revised Implementation Plans, as well as
All County Welfare Directors Letter
Page Six
Implementation Plan timeline for newly participating counties, will be provided under
separate cover, as applicable.
VII. TECHNICAL ASSISTANCE AND ADDITIONAL INFORMATION
The CDSS and AHP are committed to providing support to counties interested in
implementing CCE Preservation Funds. The AHP will be providing informational
webinars, templates and sample documents, and direct technical assistance support
throughout implementation. Counties are encouraged to contact housing(@dss.ca.gov
with any questions, concerns, or technical assistance requests regarding
implementation of the CCE Preservation Program.
Refer to the NOFA dated June 10, 2022, for more information on the purpose, eligibility
requirements, program operating requirements, and responsibilities for county
implementation of the CCE Preservation Funds.
Refer to the CCE Preservation website to review additional resources, including FAQs
and a recording of an informational webinar held June 17, 2022.
Contact housing(a)dss.ca.gov with questions about this letter or attachments.
ATTACHMENT ONE: ALLOCATION TABLES
Counties wishing to accept the noncompetitive allocations in Tables 1 and/or 2 shall
submit a signed and completed Director's Certification (Attachment One of this ACWDL)
to housing dss.ca.gov by Wednesday, January 25, 2023.
Table One: Operating Subsidy Payment Noncompetitive Allocations
D. For
Reference:
Total OSP
Funds Made
C. Total Available
A. FY 21--22 B. Additional FY 21--22 and through
County OSP Funds FY 22--23 FY 22--23 OSP FY 21--22 and
Remaining OSP Funds Funds Available FY 22--23
to Accept (A+B) (includes new
and
previously
accepted
funds
Alameda Accepted $1,535,773 $1,535,773 $3,055,380
Alpine - - - -
Amador $200,000 $26,221 $226,221 $226,221
Butte* - - - -
Calaveras $200,000 $18,729 $218,729 $218,729
Colusa - - - -
Contra Costa Accepted $1,202,398 $1,202,398 $2,392,139
Del Norte - - - -
EI Dorado $200,000 $22,475 $222,475 $222,475
Fresno Accepted $1,112,499 $1,112,499 $2,213,288
Glenn Accepted $14,983 $14,983 $214,983
Humboldt Accepted $41,204 $41,204 $241,204
Imperial $200,000 $153,577 $353,577 $353,577
In o - - - -
Kern Accepted $839,057 $839,057 $1,669,281
Kings $200,000 $52,441 $252,441 $252,441
Lake $200,000 $22,475 $222,475 $222,475
Lassen $200,000 $7,492 $207,492 $207,492
Los Angeles Accepted $19,863,912 $19,863,912 $39,518,733
Madera Accepted $89,899 $89,899 $289,899
Marin Accepted $221,002 $221,002 $439,677
Mariposa - - - -
Mendocino $200,000 $59,933 $259,933 $259,933
Merced Accepted $86,153 $86,153 $286,153
Modoc - - - -
Mono - - - -
Monterey Accepted $651,767 $651,767 $1,296,673
Napa $200,000 $14,983 $214,983 $214,983
Nevada Accepted $14,983 $14,983 $214,983
Orange Accepted $4,685,981 $4,685,981 $9,322,636
Placer Accepted $198,527 $198,527 $398,527
Plumas - - - -
Riverside Accepted $1,797,978 $1,797,978 $3,577,030
Sacramento Accepted $2,442,254 $2,442,254 $4,858,800
San Benito* - - - -
San Bernardino Accepted $2,816,833 $2,816,833 $5,604,015
San Diego Accepted $3,382,447 $3,382,447 $6,729,289
San Francisco Accepted $1,513,298 $1,513,298 $3,010,667
San Joaquin Accepted $1,352,230 $1,352,230 $2,690,226
San Luis Accepted $138,594 $138,594 $338,594
Obispo
San Mateo Accepted $827,819 $827,819 $1,646,924
Santa Barbara $263,151 $265,951 $529,102 $529,102
Santa Clara Accepted $1,636,909 $1,636,909 $3,256,588
Santa Cruz Accepted $483,207 $483,207 $961,327
Shasta $200,000 $138,594 $338,594 $338,594
Sierra - - - -
Siski ou Accepted $48,695 $48,695 $248,695
Solano Accepted $580,597 $580,597 $1,155,083
Sonoma Accepted $344,613 $344,613 $685,598
Stanislaus Accepted $1,532,027 $1,532,027 $3,047,928
Sutter Accepted $550,631 $550,631 $1,095,466
Tehama $218,675 $221,002 $439,677 $439,677
Trinity Accepted $22,475 $22,475 $222,475
Tulare $448,469 $453,240 $901,709 $901,709
Tuolumne $200,000 $26,221 $226,221 $226,221
Ventura Accepted $569,360 $569,360 $1,132,727
Yolo Accepted $104,882 $104,882 $304,882
Yuba Accepted $63,678 $63,678 $263,678
Total $3,130,295 $52,250,000 $55,380,295 $106,997,179
*Counties marked with an asterisk have licensed facilities in which regional centers are
not the vendor, but the allocation methodology used did not identify any such licensed
facilities that serve any recipients or applicants of SSUSSP or CAPI. If the county is
aware of eligible adult and senior care facilities not funded by regional centers that are
currently serving recipients or applicants of SSI/SSP or CAPI, a base allocation of
$200,000 may be requested by contacting housing(cDdss.ca.gov by the deadline of
Wednesday, January 25, 2023.
Table One Column Descriptions
• Column A indicates whether a county has already accepted the FY 2021--22
OSP funds previously made available, or whether there are remaining funds
available for acceptance from FY 2021--22.
• Column B provides the new, additional FY 2022--23 OSP allocation amount
available for acceptance.
• Column C totals the available funds in Column A and B —this is the total
amount available for the county to accept at this time through the
Director's Certification.
• Column D is the total amount that has been made available to the county,
including funds already accepted and funds currently available to accept. For
example, if all OSP funds are accepted from FY 2021--22 and FY 2022--23, the
amount in Column D will be the total amount that the county has available in
OSP funds.
Table Two: Capital Preservation (CP) Funds Noncompetitive Allocations
Counties that did not initially accept any FY 2021--22 CP funds may accept the
FY 2021--22 CP noncompetitive allocation amounts before Wednesday, January 25,
2023. The allocation amounts below are the same as those published in the NOFA
dated June 10, 2022. Counties that have already accepted the allocations are indicated
as such. No additional CP funds were appropriated in FY 2022-23.
Remaining
County FY 2021--22
CP Funds
Alameda Accepted
Alpine -
Amador $200,000
Butte* -
Calaveras $200,000
Colusa -
Contra Costa Accepted
Del Norte -
EI Dorado $200,000
Fresno Accepted
Glenn Accepted
Humboldt Accepted
Imperial $413,612
In o Accepted
Kern Accepted
Kings $200,000
Lake $200,000
Lassen $200,000
Los Angeles Accepted
Madera Accepted
Marin Accepted
Mariposa -
Mendocino $200,000
Merced $232,026
Modoc -
Mono -
Monterey Accepted
Napa $200,000
Nevada Accepted
Orange Accepted
Placer Accepted
Plumas -
Riverside Accepted
Sacramento Accepted
San Benito* -
San Bernardino Accepted
San Diego Accepted
San Francisco I Accepted
San Joaquin Accepted
San Luis Obispo Accepted
San Mateo Accepted
Santa Barbara Accepted
Santa Clara Accepted
Santa Cruz Accepted
Shasta $373,259
Sierra -
Siski ou Accepted
Solano Accepted
Sonoma $928,104
Stanislaus Accepted
Sutter Accepted
Tehama $595,197
Trinity Accepted
Tulare $1,220,659
Tuolumne $200,000
Ventura Accepted
Yolo Accepted
Yuba Accepted
Total $5,562,857
*Counties marked with an asterisk have licensed facilities in which regional centers are
not the vendor, but the allocation methodology used did not identify any such licensed
facilities that serve any recipients or applicants of SSI/SSP or CAPI. If the county is
aware of eligible adult and senior care facilities not funded by regional centers that are
currently serving recipients or applicants of SSI/SSP or CAPI, a base allocation of
$200,000 may be requested by contacting housing(aOss.ca.gov by the deadline of
Wednesday, January 25, 2023.
ATTACHMENT TWO: FY 22--23 CCE PRESERVATION DIRECTOR'S
CERTIFICATION
Counties must submit a completed, signed Director's Certification to
housing(@dss.ca.gov by Wednesday, January 25, 2023, to accept funds. Director's
Certifications must be submitted by both counties accepting CCE Preservation Funds
for the first time, as well as counties that have not previously accepted funds for the
program — however, please note that not all sections are applicable to counties that
previously accepted funds.
Section I: Contact Information
All counties:
1. County:
2. Point of contact for this Director's Certification (Note: CDSS and AHP may
contact this person if there are questions about the certification):
A. Name:
B. Title:
C. Email:
3. Please indicate which county agency or department is accepting funds on behalf
of the county:
A. County Department or Agency Name:
Section II: Accept OSP Funds
Counties accepting any OSP funds must fill out this Section, regardless of whether they
have previously accepted CCE Preservation Funds.
4. The county hereby:
❑Accepts the full allocation of OSP funds (Attachment One, Table One,
Column C)
❑Accepts a partial allocation of OSP funds (Attachment One, Table One,
Column C)
❑Declines entire allocation of OSP funds available (Attachment One,
Table One, Column D)
Confirm amount of OSP funds accepted (do not include previously accepted
funds): $
5. Confirm total amount of OSP funds accepted by the county to date, including any
OSP funds previously accepted and the amount accepted in Question 4:
❑Please check this box if the county is interested in accepting additional OSP
funds, if available
Section III: Accept CP Funds
If a county has already accepted the full amount of CP funds currently available to their
county, do not complete this section. Although no additional funds have been made
available for CP funds in FY 2022--23, counties that did not previously accept
FY 2021--22 CP funds may fill out the below to do so.
6. 1 county hereby:
Accepts the full amount of CP funds in Attachment One, Table Two
Accepts a partial amount of CP funds in Attachment One, Table Two
Declines entire allocation of CP funds available in Attachment One,
Table Two
7. Confirm amount of CP funds accepted (do not include previously accepted
funds): $
❑Check this box if the county is interested in accepting additional CP funds, if
available.
❑Check this box to confirm the county will provide the 10 percent match for any
CP funds accepted. Match may be provided by the county or contributed by
facilities awarded CP funds. However, counties are responsible for ensuring that
the 10 percent match is met.
Section IV: Director Certification Agreement
By submitting this certification to accept funds, the Director of the county department
administering the program certifies that the implementation of CCE Preservation Funds
will be consistent with relevant laws, regulations, program guidance, and evidence-
based practices, including those outlined in this ACWDL as well as the NOFA dated
June 10, 2022.
County Director Signature
County Director Name
Date
Attachment E
AWARD LETTERS
ATTACHMENT E AWARD LETTERS
E-1
4138-4495-8536.2
CDSS
I
SOCIAL SFRVIC[S COMMUNITY CARE
EXPANSION PROGRAM
April 7, 2023
Fresno County
Susan Holt, Director
Department of Behavioral Health
1925 E. Dakota Ave
Fresno, CA 93726
SUBJECT: Community Care Expansion (CCE) Preservation Program Fiscal Year
(FY) 2022-23 Award Letter and Final Award Amount
Dear Director Susan Holt:
Thank you for your continued interest in the California Department of Social Services
(CDSS) Community Care Expansion (CCE) Program. CDSS is pleased to inform you
that Fresno County is awarded an additional $1,112,499 in CCE Preservation Operating
Subsidy Payment (OSP) funds from the FY 2022-23 budget appropriation.
The Director Certification submitted by your county indicated that your county could
accept additional OSP funds and additional Capital Project (CP) funds, should they be
available. The remaining program funds from the CCE Preservation FY 2021-22 for
OSPs and CPs are now available to participating counties. CDSS is distributing these
remaining funds consistent with the need-based methodology described in Section IV of
the All County Welfare Directors Letter (ACWDL) dated December 14, 2022.
In addition to the FY 2022-23 augmentation outlined above, Fresno County is awarded
$138,303 in additional OSP funds and $115,588 in additional CP funds from the
remaining FY 2021-22 appropriation. These funds were also redistributed consistent
with the need-based methodology described in Section IV of the All County Welfare
Directors Letter (ACWDL) dated December 14, 2022.
In total, Fresno County is awarded the following allocation(s) to administer and
implement the CCE Preservation Program:
• $2,351,591 for OSP funds
• $3,111,750 for CP funds
Funds must be used to support CCE Preservation operations as described in the Notice
of Funding Availability (NOFA) dated June 10, 2022, and the ACWDL dated December
14, 2022. Funds used for the purpose of OSPs must be obligated no later than June
30, 2027 and liquidated no later than June 30, 2029. Funds used for the purposes of
CPs must be obligated no later than June 30, 2024 and liquidated no later than
December 31, 2026.
Following the release of this award letter, Advocates for Human Potential, Inc. (AHP)
will issue a Program Funding Agreement. The Program Funding Agreement will outline
expectations and responsibilities related to acceptance of the award, including
incorporation of funding terms and conditions outlined in the NOFA, ACWDL, and the
signed Director's Certification. The CCE Preservation Program grant award is not final,
and no funding will be disbursed, until a Program Funding Agreement has been fully
executed, which occurs when the Program Funding Agreement is signed by authorized
representatives for both Fresno County and AHP. Prior to that time, the CDSS and
AHP have the right to conduct additional due diligence to ensure fulfillment of all
programmatic and fiscal requirements, including but not limited to, eligibility and award
amount. Any costs incurred outside the performance period of a fully executed Program
Funding Agreement may not be reimbursed.
Please contact AHP at cce.preservation(a)ahpnet.com with any questions.
Sincerely,
JULIE MCQUITTY, Branch Manager
Program Policy and Quality Assurance Branch
Housing and Homelessness Division
California Department of Social Services
CC:
Lisa Weaver, Senior Staff Analyst
Joseph Rangel, Division Manager, Contracted Services Division
1 Community Care Expansion Preservation Projects
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20 FOR ACCOUNTING USE ONLY:
21 Fund/Subclass: 0001/10000
ORG No.: 56302832
22 Account No.: 7295/0
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- 1 - COUNTY OF FRESNO
Fresno, CA