North Carolina Administrative Code › Title 10A - HEALTH AND HUMAN SERVICES › Chapter 27 - MENTAL HEALTH, COMMUNITY FACILITIES AND SERVICES › Subchapter A - FISCAL RULES › Section .0200 - STATE AND FEDERAL FUNDS ADMINISTERED › Section 27A .0204 - DIVISION FUNDS FOR CAPITAL PROJECTS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) When
				  capital funds are specifically appropriated by the General Assembly, the
				  Division shall allocate funds for area program capital projects. Such
				  allocations shall be in accordance with the language and intent of the
				  appropriation. Instructions for capital applications and payment of funds shall
				  be issued by the division subsequent to any such specific
				  appropriation.
(b) An area program
				  may request to use state non-unit cost reimbursement (UCR) funds, Willie M. or
				  Thomas S. funds, or to transfer state operating funds outside the regular,
				  Willie M. and Thomas S. unit cost reimbursement systems for capital costs for
				  itself, its non-profit contract agency, or another governmental entity. The
				  following procedures shall be followed:
(1)
				  Approval for purchase, alteration, improvement or rehabilitation of real estate
				  held in the name of the area program or purchase, alteration, improvement, or
				  rehabilitation of real estate or lump sum down payment or periodic payments on
				  a real property mortgage in the name of a private, non-profit corporation or
				  another governmental entity under contract to the area program, which cost
				  under five thousand dollars ($5,000) is delegated to the area
				  director.
(2) Approval for
				  purchase, alteration, improvement or rehabilitation of real estate held in the
				  name of the area program or purchase, alteration, improvement, or
				  rehabilitation of real estate or lump sum down payment or periodic payments on
				  a real property mortgage in the name of a private, non-profit corporation or
				  another governmental entity under contract tot the area program which costs
				  five thousand dollars ($5,000) or over shall be based upon submission of an
				  application by the area program to the Division Director or designee. Such
				  application shall be in a format prescribed by the Division and may include the
				  following:
(A) name of applicant;
(B) address of applicant;
(C) the name and type of proposed or existing
				  facility and its location;
(D) the
				  purpose of request, whether new construction, purchase of an existing
				  structure, alteration, improvement or rehabilitation of an existing
				  facility;
(E) a statement of the
				  need for the facility or alteration, improvement or rehabilitation;
(F) description of the programs conducted or
				  to be conducted in the facility;
(G) target date for project
				  completion;
(H) an estimated
				  construction budget and projected revenue sources;
(I) a statement indicating whether or not
				  additional Division funds will be required for operating costs. If this
				  question is answered yes, the application shall indicate the estimated
				  additional operating funds required and the proposed funding source;
(J) the name and telephone number of the area
				  program representative designated as contact for the application; and
(K) two property appraisals completed by
				  licensed property appraisers for costs associated with the purchase of an
				  existing building, lump sum down payments and period payments on the mortgage
				  of real property.
(3)
				  Funds approved for capital projects under Paragraph (b) of this Rule shall be
				  paid in the following manner:
(A) Funds
				  approved under Subparagraph (b)(1) of this Rule shall be requested by the area
				  program using regular fund request procedures as funds are needed.
(B) Funds approved under Subparagraph (b)(2)
				  of this Rule shall be requested in the following manner:
(i) if funds are to be utilized for the
				  purchase of a facility, the necessary funds may be requested within 30 days
				  from when they are needed via a written request from the Area Director to the
				  Division Director or designee. The request shall specify the amount of funds
				  needed and the projected closing date of the purchase.
(ii) if funds are to be utilized for the
				  construction of a new facility or renovation, rehabilitation or alteration of
				  an existing facility, funds will be disbursed based upon written requests from
				  the Area Director to the Division Director or designee certifying project
				  completion at the following intervals: 10%, 25%, 50%, 75% and 100%. Upon
				  receipt of such billings, the Division shall issue payment consistent with the
				  percentage completed.
(4) All aspects of any capital project shall
				  be completed in accordance with all applicable federal, State and local
				  regulations. Such compliance shall include, but not be limited to, G.S. 159
				  requirements, Division of Health Service Regulation licensure regulations, and
				  local building ordinances.
(5) The
				  area program shall maintain a perpetual inventory of all facilities purchased,
				  constructed, altered, renovated or rehabilitated in accordance with this Rule.
				  This inventory shall document the history cost of the facility plus subsequent
				  improvements and the percentage of Division participation in the total
				  cost.
(6) Should the facility cease
				  to be used for the purpose of serving clients of the Division, or, more
				  specifically for the purpose of serving Willie M. or Thomas S. clients if the
				  purchase, construction, rehabilitation, alteration or improvement was funded
				  from those specific funding sources, the Division shall be contacted
				  immediately for disposition instructions. If the Division so directs, the
				  facility shall be sold at the current fair market value in accordance with
				  G.S.
				  153A-176 and
				  G.S.
				  160A-266. After the sale, the Division shall
				  be reimbursed the Division's pro-rata share of the proceeds from the sale based
				  on the percent of contribution made by the Division for the purchase,
				  construction, alteration, improvement or rehabilitation of the sold facility,
				  If an area program or its contract provider wishes to maintain ownership of a
				  facility that was constructed, purchased, altered, improved or rehabilitated
				  using Division funds, the area program or non-profit contract provider may, if
				  authorized by the Division, pay to the Division the Division's pro-rata share
				  of the current fair market value of the facility as determined by two
				  independent appraisals acceptable to the Division.