1. (a) Implementing a permit of approval.

   1. (1)

      1. (A)

2. (i) Applicants approved to construct a new facility or expand an existing facility have nine (9) months from the date of the issuance of the permit (or from the date of the final judicial decision on the permit of approval application) to sign a construction contract.

   1. (ii) The construction contract shall specify that the:
3. (a) (a) Foundation for the facility will be completed within six (6) months of the signing of the contract; and

4. (b) (b) Facility will be completed within eighteen (18) months from the date of the signing.

   1. (iii) A license must be obtained within fifteen (15) months from the due date of foundation.

      1. (B)

         1. (i) In the event that the construction contract is not signed within nine (9) months, the foundation is not completed within six (6) months of signing the construction contract, or the project is not completed and a license is not obtained within fifteen (15) months of the due date of the foundation, the permit must be terminated by the Health Services Permit Agency.
         2. (ii) Appeals of the termination will be made to the Health Services Permit Commission within thirty (30) days of notice of termination.
         3. (iii) Notice of the termination of a permit will be through certified letter to the holder of the permit.
         4. (iv) Notice of hearings on appeal of the termination will be by mail to the holder of the permit and affected parties and legal notice in a newspaper of statewide coverage.

   2. (2)

      1. (A) Applicants that have made a preliminary application for a United States Department of Housing and Urban Development-insured loan on or before the ninetieth day following the issuance of their POA and have not received an approval from the United States Department of Housing and Urban Development by the start of the eighteenth month following the issuance of the POA may request an extension of the POA for up to an additional six (6) months.

      2. (B) In order to receive the extension, the applicant must provide the agency with a letter from the United States Department of Housing and Urban Development documenting:

         1. (i) The date of preliminary application; and
         2. (ii) That the delay in approval was not due to inaction or delays by the applicant.
      3. (C) This request for an extension on the permit of approval must be made at least three (3) weeks prior to the end of the eighteenth month.
   3. (3) Projects not requiring construction or renovation must be licensed within one (1) year of the date of the permit of approval (or within one (1) year of the date of the final judicial decision on the permit of approval application).

   4. (4)

      1. (A) After project approval, if the applicant wishes to change the approved project, the proposed changes are subject to permit of approval if they are such that in themselves they would be subject to review.
      2. (B) If an applicant proposes a change that was a significant reason for the approval of the project, then that proposed change must go before the commission to determine whether the change shall require review.
   5. (5) A permit of approval once issued to an approved applicant is not transferable to any other institution or party without approval of the commission.

   6. (6) Extensions.

      1. (A) The commission may approve a request for extension of time if good cause is presented.
      2. (B) Any request for an extension must be made in writing to the agency prior to the expiration of the date on which the phase or project was to be completed.
      3. (C) Under no circumstances will an extension be granted for more than six (6) months at a time.
      4. (D) An applicant may request subsequent extensions.

   7. (7)

      1. (A) The above stated timelines also apply to projects that were exempted from permit of approval review.
      2. (B) The starting date for exempted projects will be the date of the exemption, e.g., exempted construction projects will have nine (9) months from the date of exemption to sign a construction contract.

5. (b) Reporting.

   1. (1) It will be the sole responsibility of the applicant to keep the agency informed of its progress during the approval period.
   2. (2) Documentary evidence of the signed construction contract, the construction of the foundation, and the application for licensure must be submitted to the agency.

   3. (3) A progress report to the agency on the project is required:

      1. (A) At the time the construction contract is due;
      2. (B) At the time the foundation is due to be completed; and
      3. (C) Every six (6) months after that until the project is licensed.

   4. (4) Failure to submit these progress reports may result in the approved party having to appear before the commission to show cause why the permit should not be terminated.

      1. (c) Termination or surrender of a permit of approval or license. Any increase or decrease in beds or services due to the expiration, termination, revocation, or surrendering of a permit or the expiration, termination, revocation, or surrendering of a license must be recorded with the agency at least sixty (60) days prior to the deadline for filing applications for a review cycle in order to be considered in the review cycle.

Codification Notes: "POA" means permit of approval.