The final budget reviewed and reflected within the PFA must align with the budget approved at the time of award. If you need to make any changes or have concerns, please reach out to your Grant Coordinator. All budget changes must be approved by CDSS and HORNE. For all applicants who did not receive an award with AHP, budget changes will not be allowed after an award has been finalized.

Yes, pre-award costs such as attorney fees or appraisal costs can be utilized towards the match amount if they qualify as eligible sunk costs directly related to the development project, are well-documented, approved by CDSS and HORNE as meeting the CCE Expansion Program requirements, and are not reimbursed by the Expansion funds, as they must supplement rather than supplant other funding sources.

Yes. A seller carryback, similar to a traditional bank loan, can be considered match funding brought to the project by the sponsor.

The CCE grant does not have an income limit requirement. However, there is a target population requirement of serving SSI/SSP & CAPI recipients or applicants.

The following templates are available:

1. Applicant’s Certification of Funding Terms
2. Full CCE Budget Template
3. Schematic Design Checklist
4. Design, Acquisition, and Construction Milestone Schedule

There is not a Standard form available for the below documents. However, the deliverables must include:

• Authorizing Resolutions: An authorizing resolution is a formal document adopted by the board of directors or other governing body of a business entity, such as a corporation, partnership, or limited liability company (LLC), granting authority to specific individuals or committees to accept the CCE grant and sign the program funding agreement. This resolution specifies the scope and limitations of the authority granted, ensuring that actions taken by the authorized individuals are legitimate and binding on the organization. The authorizing resolution must materially comply with the program requirements and must be signed and dated.
• Legal Opinion Letter: A signed opinion letter is required from the Sponsor’s legal counsel opining that the Program Funding Agreement, the Declaration of Restrictions, the Performance Deed of Trust, and the Program Requirements do not conflict with any existing contract, agreement, or other requirement applicable to Sponsor, the property upon which the Project is to be constructed or operated, or the Project, and are otherwise enforceable against Sponsor; and such opinion letter shall be in the form and substance acceptable to Horne and CDSS, in their sole discretion.
• Operating Agreement: An operating agreement is a legal document agreed to when someone forms a limited liability company (LLC). At a high level, it sets forth the structure, management, decision-making process, and operating procedures for an LLC. All applicants are required to provide an operating agreement for the applying entity.
• Articles of Incorporation and Bylaws: Articles of Incorporation are public records that must be filed with the secretary of state to create and form the foundation of a corporation. They establish the corporation’s existence and typically include essential information such as the corporation’s name, purpose, duration, registered agent, and the names of its incorporators. Bylaws, in contrast, are private records that set forth the rules and procedures by which the corporation should operate. They detail the internal governance of the corporation, including the roles and responsibilities of directors and officers, the process for holding meetings, and the procedures for making corporate decisions. In summary, while the Articles of Incorporation legally establish the corporation’s existence and fundamental structure, the Bylaws govern the internal management and operational procedures of the corporation.
• Broker’s Opinion: A Broker’s Opinion or Broker Price Opinion is a home valuation report provided by a licensed real estate professional. It determines the property’s estimated value based mainly on its condition and the recent sale prices of comparable homes located nearby.

An authorizing resolution is a formal document adopted by the board of directors or other governing body of a business entity, such as a corporation, partnership, or limited liability company (LLC), granting authority to specific individuals or committees to accept the CCE grant and sign the program funding agreement. This resolution specifies the scope and limitations of the authority granted, ensuring that actions taken by the authorized individuals are legitimate and binding on the organization. The authorizing resolution must materially comply with the program requirements and must be signed and dated.

• Key Elements:
  • Purpose and Scope: Clearly defines the specific actions or transactions the resolution authorizes, such as entering into the Program Funding Agreement.
  • Authorized Individuals: Names the individuals or positions within the organization who are granted the authority to act.
  • Limitations: Outlines any limitations on the authority granted, including monetary thresholds, time frames, or specific conditions that must be met.
  • Effective Date: Specifies when the resolution takes effect and, if applicable, when it expires.
  • Approval and Signatures: Includes the approval of the governing body and the signatures of the chairperson or secretary of the board, confirming the resolution’s adoption.

Legal Significance: An authorizing resolution provides a clear record of the governing body’s decision and ensures that actions taken by the authorized individuals are legally binding on the organization. It also helps protect the entity from unauthorized actions and provides a basis for accountability.

 

A signed opinion letter is required from the Sponsor’s legal counsel opining that the Program Funding Agreement, the Declaration of Restrictions, the Performance Deed of Trust, and the Program Requirements do not conflict with any existing contract, agreement, or other requirement applicable to Sponsor, the property upon which the Project is to be constructed or operated, or the Project, and are otherwise enforceable against Sponsor; and such opinion letter shall be in the form and substance acceptable to Horne and CDSS, in their sole discretion.

Yes, Comprehensive Automobile and Vehicle Liability Insurance and Worker’s Compensation Insurance is always required. Please note Worker’s Compensation is not for sole proprietors or single-member entities and is only applicable when entities have employees. The general contractor on all projects must have Worker’s Compensation insurance.

• Builders Risk Insurance Policy
• Workers’ Compensation Insurance
• Comprehensive Automobile and Vehicle Liability Insurance
• Commercial General Liability Insurance

Yes, this should suffice. Once received, HORNE will review and advise further if applicable.

Per Occurrence: $1,000,000. Annual Aggregate: $5,000,000 as Standard. A lower aggregate may be considered on a case-by-case basis.

The operating entity should have worker’s compensation insurance regardless of construction unless there are no employees for the firm. The contractor should have their own worker’s compensation policy.

A conditional lien waiver is a document signed by a contractor, subcontractor, or supplier that waives the right to file a lien on a property, contingent upon receiving payment. Essentially, it means that the waiver becomes effective only if the specified payment has been received. If the payment is not made, the waiver is not valid, and the contractor or supplier retains the right to file a lien.

An unconditional lien waiver, on the other hand, immediately waives the right to file a lien upon signing, regardless of whether the payment has been received. This type of waiver offers the property owner more security but poses a higher risk for the contractor or supplier because they give up their lien rights without any guarantee of payment.

A title report is a document that outlines the history of ownership and the current state of the title for a piece of property. It is used to confirm that the seller has the right to transfer ownership and to identify any claims, liens, easements, or encumbrances on the property. The title report should reflect any easements on the property. This includes the type of easement, location, parties involved, duration, and the legal description of the easement area.

All prevailing wage questions should be directed to the Department of Industrial Relations (DIR). All Sponsors will need to reach out directly to DIR to receive answers. Per PFA, Sponsor is responsible to be in compliance with all Prevailing Wage Laws.

Evidence that all Asbestos and/or Lead-Based Paint has been abated should come from a third party not affiliated with the sponsor, in the form of a report prepared by a professional certified in the State of California.

Physical inspections will be conducted by a Third Party, on behalf of Horne and CDSS, for all CCE Projects.

Developer fees are payments made to developers for their services in planning, coordinating, and overseeing the development of a project. These fees compensate developers for their expertise, time, and risk associated with managing the project from inception through completion.

The sponsor can receive payment for developer fees upon receipt of the project’s Certificate of Occupancy. To draw down developer fee funds, the match funds pledged must remain at 5% for Tribal Entities, 10% for Counties, Cities, and Nonprofit providers, and 25% for For-Profit providers and/or Private Organizations. If the sponsor no longer meets the required match percentage, then the Grant Coordinator will be notified that the sponsor will need to provide proof of the new required match amount.

Developer Fees are a standard calculation on the budget template that can be a compensation to the project developer for the time and resources spent to develop low-income developments for those at risk of or experiencing homelessness and are SSI/SSP and/or CAPI recipients. The developer fee can be requested once the project is completed, and a Certificate of Occupancy has been received. Payment of the Developer Fee is contingent on specific criteria to include Certificate of Occupancy and Completed Site Visit.

Contingency line items are meant to be utilized for unexpected cost overruns and change orders. To draw down contingency funds, the match funds pledged must remain at 5% for Tribal Entities, 10% for Counties, Cities, and Nonprofit providers, and 25% for For-Profit providers and/or Private Organizations. If the sponsor no longer meets the required match percentage, then the Grant Coordinator will be notified that the sponsor will need to provide proof of the new required match amount.

Contingency cannot be reimbursed if not used as it is only meant to cover unexpected cost overruns and only disbursed on an “as-needed” basis.

Contingency line items are built into the budget for the purpose of covering unexpected cost overruns. As the CCE Expansion Program is a one-time only program and has a limited amount of funds available, Sponsors should explore other funding sources to cover the additional costs. As a last resort, the Sponsor can request an increase, however all increases are subject to review and approval as well as availability of funds.

Liens such as tax liens, mortgage liens, mechanic’s liens (for unpaid contractors), or judgment liens (from lawsuits) could affect project approval and generally need to be cleared or subordinated.

Yes, you can apply for funding if the property has existing liens; however, the CCE Capital Expansion requires that its grant maintains a first-position lien on the property unless otherwise agreed upon. Existing liens must be addressed to ensure they do not interfere with the project’s financing or title status. In some cases, a subordination agreement may be necessary to establish the CCE Capital Expansion grant’s priority.

A subordination agreement is a legal document between lienholders that establishes the order of priority for repayment if a borrower defaults on its obligations or goes into bankruptcy. Typically, lienholders in a “first position” (senior) lien are repaid before others with “junior” (or secondary) liens. the California Department of Social Services (CDSS) generally requires that CCE Expansion Program documents maintain a first-position lien on the property with the CDSS Declaration of Restrictions (DOR) recorded first followed by the CDSS Performance Deed of Trust (PDOT). For the CCE Capital Expansion, since the liens are secured by real property, the subordination agreement is also recorded.

In certain cases, CDSS may consider subordinating its lien to facilitate additional project financing. In reviewing potential subordination, CDSS considers, among other factors, if the terms of the additional funding align with CDSS’s objectives and if the CCE Capital Expansion’s interests are adequately protected. CDSS will evaluate subordination requests individually and retains sole discretion to deny such requests. Any subordination requests must be presented to CDSS prior to execution of the PFA for the project.

Any new liens must be reported immediately, as they may affect ongoing project funding or compliance. All new liens require prior authorization and consent from CDSS, as outlined in the PFA. Additionally, any lien placed after CDSS approval, barring unusual circumstances, will automatically be subordinate to the CDSS grant, ensuring that the project’s financial viability and compliance remain protected.

Match funding refers to the financial contributions that sponsors or other entities must provide to complement the grant. The match funds pledged must remain at 5% for Tribal Entities, 10% for Counties, Cities, and nonprofit providers, and 25% for For-profit providers and/or private organizations. For-profit providers and/or private organizations who partner with tribes, counties, cities, or nonprofit providers may be eligible for a lower match. Additionally, match funds must be fully depleted prior to disbursements of CCE Capital Expansion funds to ensure compliance with program requirements.

Yes, in some cases, in-kind contributions such as donated services, materials, or equipment can count toward match requirements, but they must be documented and approved by HORNE and CDSS.

Prior to disbursement of any CCE funds, all cash match funds must have been fully expended. After the PFA has been executed, recorded, and the initial payment is reviewed, the Sponsor will work with QuickDraw Fund Control to verify the depletion of the required match. Horne will verify land value as applicable prior to execution.

An appraisal report is needed for property that is owned and used as a match source to determine the fair market value of the property.  A property tax statement from last fiscal year would not fulfill this requirement because it is used to determine anticipated property taxes for each year.

Sponsors must provide formal commitment letters, contracts, invoices, bank statements, appraisals, or other documentation requested by HORNE or CDSS that verify the availability and source of match funds.

The sponsor must notify their assigned Grant Coordinator immediately if match funding dissolves and should secure alternative funding sources to keep the project viable. Additional potential funding sources can be found here: CCE-Expansion-Additional-Funding-Source-List-.pdf (ccegrant.com).

To submit a sunk cost draw request, you need to provide:

• Sponsor Payment Template;
• Invoices that are project-related; and
• Proof of payment using one of the following acceptable forms:
  • Unconditional Lien Waivers: A document from a contractor or supplier waiving their right to place a lien on the property after receiving payment.
  • Cancelled Checks: Both the front and back of a signed check showing the transaction has cleared.
  • Bank Statement: An official bank document, on bank letterhead, showing the payment has been made, with the payee clearly listed.
• Any additional documentation requested by HORNE or CDSS to evaluate the sunk cost draw request.

Title instructions for the purpose of a grant and receiving title lender’s insurance typically outline the requirements, conditions, and procedures for ensuring that the title to a property is clear and marketable. These instructions are critical in the process of obtaining grant funds and securing title insurance, which protects against potential disputes or claims regarding property ownership.

The title lender’s insurance policy, often referred to as a lender’s title insurance, is a type of insurance policy that protects lenders against potential losses due to issues with a property’s title.

The pro forma policy with title, often referred to as a pro forma title policy, is a preliminary version of a lender’s insurance policy issued before the final policy. It outlines the conditions and exceptions that will be included in the final title insurance policy helping to ensure that all parties are aware of and can address any title issues before completing the real estate transaction.

Endorsements to a title policy are additional provisions or modifications that are added to the standard title insurance policy to either extend or clarify the coverage provided. They are often used to address specific concerns or risks that might be associated with a particular property or transaction.

DOR and a PDOT are both real estate instruments utilized by the CCE Capital Expansion to secure the grant for the intended purpose and restriction period. Declaration of Restrictions means a legal obligation imposed in a deed. Such restrictions frequently “run with the land” and are enforceable on subsequent buyers of the property. The declaration is binding on all current and future property owners within the community. Violations can lead to penalties or legal action by the governing body. The Performance Deed of Trust secures the lender’s interest in the property by placing a lien on it until the restriction period and obligations of the Grant are met. Violations can lead to foreclosure by the governing body.

The closing and recording of the PDOT and DOR require a structured approach to ensure compliance and safeguard the grant’s priority. This process begins with coordinating with the Title Company to negotiate and establish an agreed-upon pro forma and any necessary endorsements, as well as executing comprehensive title instructions that specify coverage terms. Once these conditions are met, CDSS will authorize the recording of the PDOT and DOR. Following successful recording, a lender’s title insurance policy must be secured to confirm the grant’s lien priority and mitigate risks associated with any future claims on the property title.

Once the PFA is executed and the necessary property documents are recorded, sponsors can request disbursements. HORNE initiates this process by creating a secure ShareFile folder for the sponsor, where the Sponsor Payment Template and any required W-9 forms can be uploaded. After submission, the sponsor notifies their Grant Coordinator. HORNE then conducts an initial review to confirm compliance, followed by an in-depth review by Quick Draw Fund Control (QDFC). During the first request, QDFC holds an onboarding meeting with the sponsor to ensure clarity on disbursement requirements. Based on QDFC’s recommendation, HORNE performs a final review and authorizes the disbursement. Funds are then directly sent to the vendor, and sponsors receive a confirmation email detailing the approved amount, funding source, and disbursement date.

Yes, $28.5 million in CCE Capital Expansion funding has been set aside for tribal entities.

The Cost per Bed is calculated as follows: (Grant Funds requested – COSR) / the Number of CCE Dedicated Beds.

Yes, CCE consent is required to develop part of the property with Behavioral Health Continuum Infrastructure Program (BHCIP) funds if it involves the same project funded by CCE. If CCE and BHCIP funds are contributing to the same property/parcel and the CCE PDOT/DOR has been recorded, consent must be requested by submitting the BHCIP Award Letter and a list of documents to be recorded for BHCIP, along with a summary of the status of BHCIP funds, including whether the BHCIP PFA is executed and the PDOT/DOR recorded. Whichever PDOT/DOR is recorded first takes priority. Notify your Grant Coordinator, and the documents will be reviewed to provide written consent accordingly. If the BHCIP funds necessitate a lien or similar encumbrance on the property, a subordination agreement will likely be required to establish the priority of interests between CCE and BHCIP.

Yes, match funds are based on the Grant amount awarded which includes COSR. Match requirements are set according to applicant type:

• Tribal Entities = 5% match
• Counties, cities, and nonprofit providers = 10% match
• For – Profit providers and / or private organizations = 25% match.

There is no waiver for the match requirement. However, to incentivize local partnerships while also helping to expedite projects, for-profit providers may partner with tribes, counties, cities, or nonprofit organizations to be eligible for the lower match.

The sponsor must expend the grant-approved line item on or after the date of the award letter. After the Program Funding Agreement has been executed, documents recorded, and match verified, the sponsor may request reimbursement. However, please note that previously incurred costs and match funds cannot be reimbursed.

There is no maximum or minimum. Funding should be allocated to the highest and best use related to a county’s goals consistent with the prioritization criteria outlined in Section 204 of the NOFA.

Yes. If program funding is going to a facility, there needs to be a contract in place. The contract can be with the county or its contracted third-party administrator.

ACH payments will be made directly to the banking information the applicant provides.

Community Care Licensing Division (CCLD) has a public website where you can search for facilities to get this information. To verify that licensed facilities are in good standing, visit the website here.

Yes, collaboration between county departments is strongly encouraged. However, the county department that signs the program funding agreement (PFA) is ultimately responsible for managing program funds and administering the program in accordance to the PFA and program guidance.

The acquisition of property is not eligible for CCE Preservation funds. However, funding through the Capital Expansion RFA: CCE Capital Expansion grants can be used for acquisition, construction, and rehabilitation to preserve and expand adult and senior care facilities serving Supplemental Security Income/ State Supplementary Payment (SSI/SSP) and Cash Assistance Program for Immigrants (CAPI) applicants and recipients, including those who are experiencing or at risk of homelessness. While the application portal has closed, applications that were submitted prior to June 1, 2023, will be considered for Capital Expansion grant funding.

Yes. They would be considered eligible residents and could be counted as such. In this scenario, the county should be working with the resident county to ensure no duplication of funds.

Yes. The residents receiving SSI, regardless of other supports they may be receiving, would count toward the eligibility numbers.

To be eligible for CCE Operating Subsidy Payment (OSP) funds, facilities must confirm operational deficit amounts are a result of applying all existing revenues, regardless of funding source, to operational expenditures. If, after incorporating all existing revenues available to either the facilities planned operational budgets or actual financials, they still have a deficit, they may be eligible to receive OSP funds. Counties may consider working with facilities to ensure they are braiding funding appropriately and supplementing funds and not supplanting.

A new portal and system of record is under development. Once finalized, counties will be provided a link and login information to access the portal.

No. If the PFA has already been executed, you will not need to create a new PFA.

Costs incurred after the date of your award, but prior to the PFA execution, will be considered sunk costs and may be used as match if they meet the expense criteria listed in the NOFA.

For more information about CCE Program funding and deadlines, visit our Funding Overview page.

You will be assigned a main point of contact from HORNE who will serve as your grant coordinator throughout the process. A representative from HORNE will contact you to schedule a one-on-one meeting with your new grant coordinator to discuss your CCE award in detail and answer any questions you may have.

Following the transition of the CCE third-party administrator from Advocates for Human Potential to HORNE, all materials related to the CCE program were transferred into a new system of record managed by HORNE. Additional information or clarification may be requested as CDSS and HORNE continue review of your application.

The transition is part of our ongoing mission to expand the state’s housing and care continuum, improve housing stability, and prevent the cycle of homelessness or unnecessary institutionalization. We expect this transition to benefit CCE awardees as the program continues to evolve. HORNE will utilize processes and systems already being implemented in similar programs supporting vulnerable populations.