(b)

1. (1) The department may enter into an agreement with one or more entities to facilitate the grant awards. A contracting entity shall act as a third-party administrator to provide operational services under the contract with the department. The services may include, but are not limited to, all of the following:

   1. (A) Supporting the development of the notice of funding availability.
   2. (B) Developing an online application portal.
   3. (C) Executing contracts.
   4. (D) Processing invoices and making grant payments.
   5. (E) Providing technical assistance via webinars, learning collaboratives, application assistance, and other methods.
   6. (F) Reporting.
2. (2) Funds appropriated for the purposes of this section shall be awarded, at the discretion of the department, to qualified grantees that include, but are not limited to, counties, tribes, or jointly applying counties and tribes.
3. (3) Qualified grantees may award grant funds to one or more subgrantees for projects consistent with the requirements of this chapter.

(c) Subject to an appropriation of funds in the annual Budget Act for the following purposes, the department shall award grants for one or both of the following as specified in the annual Budget Act:

1. (1) To preserve or expand capacity of residential adult and senior care facilities through the acquisition, construction, or rehabilitation of property.

   1. (A) Qualified grantees may also use a portion of grant funds to establish capitalized operating subsidy reserves.
   2. (B) Counties and tribes receiving funds under this paragraph shall provide matching funds or real property.
   3. (C) The department, at its discretion, may award grants in a manner that takes into consideration the prioritization of qualified residents who are experiencing homelessness or who are at risk of homelessness.

2. (2) To provide capitalized operating subsidy reserves to existing licensed residential adult and senior care facilities that serve at least one qualified resident, in order to avoid the closure of facilities and to increase the acceptance of new qualified residents, consistent with Provision 19 of Item 5180-151-0001 of the Budget Act of 2021 (Ch. 69, Stats. 2021).

   1. (A) The department shall award grants in a manner that prioritizes preserving the placement of qualified residents currently residing within a licensed residential adult or senior care facility that is at risk of closure and facilities with the highest percentage of qualified residents.
   2. (B) As a condition of accepting funds, facilities are required to prioritize applications from prospective qualified residents, including those who are currently or formerly homeless or who are at risk of homelessness.
   3. (C) The department shall report to the Legislature at the midpoint of program implementation and within six months after program completion on outcome monitoring, the use of funds, and the impact on retention of current capacity and additional capacity as a result of receiving operating subsidies. The report shall include data on the capacity of facilities serving individuals with a serious mental illness.

(d) The department shall develop criteria for the program, including, but not limited to, all of the following:

1. (1) The methodology and distribution of the funds awarded to qualified grantees under paragraphs (1) and (2) of subdivision (c). The department shall consider the distribution of adult and senior care facilities in counties across the state, the share of the latest homeless point-in-time count across the counties, and the relative cost of construction, acquisition, and rehabilitation between counties. The department shall set aside 8 percent of funds for a competitive program for small counties with a population of less than 200,000, and shall redistribute any unexpended funds.
2. (2) The proportion of funds that may be expended on capitalized operating subsidy reserves pursuant to subparagraph (A) of paragraph (1) of subdivision (c).
3. (3) Allowable use of funds awarded under paragraphs (1) and (2) of subdivision (c).
4. (4) Tracking and reporting procedures.

(j) For purposes of implementing this section, contracts entered into or amended pursuant to this section shall be exempt from the following:

1. (1) Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code.
2. (2) The personal services contracting requirements of Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code.
3. (3) Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code and the State Contracting Manual.
4. (4) Notwithstanding Section 11546 of the Government Code, from review or approval of any division of the Department of Technology, upon approval from the Department of Finance.
5. (5) From the review or approval of any division of the Department of General Services.