1. (a) The Authority shall give consideration to a private nonprofit corporation or public agency in an area or region of the state if a county, or Counties Applying Jointly, affirmatively supports this designation and collaboration in lieu of a county directly receiving Grant funds for real property acquisition or for construction or renovation on real property acquired with Grant funds by the designated private nonprofit corporation or public agency. The designated private nonprofit corporation or public agency shall comply with all of the following requirements:

   1. (1) The designated private nonprofit corporation or public agency shall provide the Program(s) services.

   2. (2) The designated private nonprofit corporation or public agency shall execute a Grant Agreement that:

      1. (A) Complies with the provisions contained in Section 7324.

      2. (B) Provides that in the event the designated private nonprofit corporation or public agency fails to provide Crisis Residential Treatment, Crisis Stabilization services, or Family Respite Care as provided in the Grant Agreement, title to the real property shall be given to the county or Counties Applying Jointly.

         1. (i) In the event the county or Counties Applying Jointly do not take and hold title to the real property when the designated private nonprofit corporation or public agency fails to provide Crisis Residential Treatment, Crisis Stabilization services, or Family Respite Care as provided in the Grant Agreement, the Authority may take any action necessary to take and hold title to the real property.
   3. (3) The designated private nonprofit corporation shall provide, upon request, Audited Financial Statements and shall retain all Project and financial records necessary to substantiate the purposes for which the Grant funds were spent for a period of three years after the certification of Project completion has been submitted.

   4. (4) The designated private nonprofit corporation or public agency shall provide, upon request, a current title report that shows all of the following:

      1. (A) No easements, exceptions or restrictions on the use of the site that shall interfere with or impair the operation of the Project.
      2. (B) A fee title subject to the lease agreement described in subdivision (a)(5).
      3. (C) A deed of trust recorded in the chain of title against the real property that contains the lease agreement described in subdivision (a)(5).

   5. (5) The designated private nonprofit corporation or public agency shall enter into a lease agreement with the county or Counties Applying Jointly for use of the real property for Crisis Residential Treatment, Crisis Stabilization or Family Respite Care for the useful life of the Project, including any renewals. The lease agreement shall provide that:

      1. (A) In the event the designated private nonprofit corporation or public agency fails to provide Crisis Residential Treatment, Crisis Stabilization or Family Respite Care services as provided in the Grant Agreement, title to the real property shall be given to the county or Counties Applying Jointly.

         1. (i) In the event the county or Counties Applying Jointly do not take and hold title to the real property when the designated private nonprofit corporation or public agency fails to provide Crisis Residential Treatment, Crisis Stabilization or Family Respite Care as provided in the Grant Agreement, the Authority may take any action necessary to take and hold title to the real property.

Note: Authority cited: Sections 5848.5 and 5848.6, Welfare and Institutions Code. Reference: Section 5848.5, Welfare and Institutions Code.

History

1. New section filed 11-26-2018 as an emergency; operative 11-26-2018 (Register 2018, No. 48). A Certificate of Compliance must be transmitted to OAL by 5-28-2019 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 11-26-2018 order transmitted to OAL 4-22-2019 and filed 5-20-2019 (Register 2019, No. 21).