Cal. Welf. & Inst. Code § 11462.06
Computation and Payment of Aid Grants
Redline — January 1, 2011 → current.View current text →
Current — January 1, 2017
As of January 1, 2011
(a) For purposes of the administration of this article, including the setting of group home rates, the department shall deem the reasonable costs of leases for shelter care for foster children to be allowable costs. Reimbursement of shelter costs shall not exceed 12 percent of the fair market value of owned, leased, or rented buildings, including any structures, improvements, edifices, land, grounds, and other similar property that is owned, leased, or rented by the group home and that is used for group home programs and activities, exclusive of idle capacity and capacity used for nongroup home programs and activities. Shelter costs shall be considered reasonable in relation to the fair market value limit as described in subdivision (b).
(a) For purposes of the administration of this article, including the setting of AFDC-FC provider rates, the department shall deem the reasonable costs of leases for shelter care for foster children to be allowable costs. Reimbursement of shelter costs shall not exceed the fair market rental value, as determined in subdivision (b), of owned, leased, or rented buildings, including any structures, improvements, edifices, land, grounds, and other similar property that is owned, leased, or rented by the provider and that is used for the provider’s AFDC-FC programs and activities, exclusive of idle capacity and capacity used for nonresidential foster care programs and activities. Shelter costs shall be considered reasonable in relation to the fair market value limit as described in subdivision (b).
(b) For purposes of this section, fair market value of leased property shall be determined by either of the following methods, as chosen by the provider: (1) The market value shown on the last tax bill for the cost reporting period. (2) The market value determined by an independent appraisal. The appraisal shall be performed by a qualified, professional appraiser who, at a minimum, meets standards for appraisers as specified in Chapter 6.5 (commencing with Section 3500) of Title 10 of the California Code of Regulations. The appraisal shall not be deemed independent if performed under a less-than-arms-length agreement, or if performed by a person or persons employed by, or under contract with, the group home for purposes other than performing appraisals, or by a person having a material interest in any group home which receives foster care payments. If the department believes an appraisal does not meet these standards, the department shall give its reasons in writing to the provider and provide an opportunity for appeal.
(b) (1) For purposes of this section, fair market rental value of leased property shall be determined by either of the following methods, as chosen by the provider: (A) The fair market rental value determined by a comparative analysis prepared by an independent real estate broker. The comparative analysis shall be performed by a qualified, licensed professional who acts within the scope of the broker’s license, who, at a minimum, meets the standards for brokers, as specified in Chapter 6 (commencing with Section 2705) of Title 10 of the California Code of Regulations, and the comparatives shall be made in accordance with Section 200.465(a) of Title 2 of the Code of Federal Regulations. (B) The fair market rental value determined by an independent appraisal. The appraisal shall be performed by a qualified, licensed professional appraiser who, at a minimum, meets standards for appraisers as specified in Chapter 6.5 (commencing with Section 3500) of Title 10 of the California Code of Regulations. (2) The determinations made pursuant to this subdivision shall not be deemed independent if performed under a less-than-arm’s-length agreement, or if performed by a person or persons employed by, or under contract with, the program for purposes other than performing appraisals, or by a person having a material interest in any program that receives foster care payments. If the department believes an appraisal does not meet these standards, the department shall give its reasons in writing to the provider and provide an opportunity for appeal.
(c) (1) The department may adopt emergency regulations in order to implement this section, in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(c) Notwithstanding the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement applicable provisions of this section by all-county letters or similar instructions until regulations are adopted.
(2) The adoption of emergency regulations pursuant to this section shall be deemed to be an emergency and considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, or general welfare.
(3) Emergency regulations adopted pursuant to this section shall be exempt from the review and approval of the Office of Administrative Law.
(4) The emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State and publication in the California Code of Regulations.
(d) (1) Commencing July 1, 2003, any group home provider with a self-dealing lease transaction for shelter costs, as defined in Section 5233 of the Corporations Code, shall not be eligible for an AFDC-FC rate.
(d) (1) Commencing July 1, 2003, any group home or short-term residential therapeutic provider with a self-dealing lease transaction for shelter costs, as defined in Section 5233 of the Corporations Code, shall not be eligible for an AFDC-FC rate.
(2) Notwithstanding paragraph (1), providers that received an approval letter for a self-dealing lease transaction for shelter costs during the 2002–03 fiscal year from the Charitable Trust Section of the Department of Justice shall be eligible to continue to receive an AFDC-FC rate until the date that the lease expires, or is modified, extended, or terminated, whichever occurs first. These providers shall be ineligible to receive an AFDC-FC rate after that date if they have entered into any self-dealing lease transactions for group home shelter costs.
(2) Lease and rental transactions are subject to restrictions set forth in Section 200.465(c) of Title 2 of the Code of Federal Regulations.
(e) (1) Fair market rental value shall be determined at the execution of the lease and at renewal or extension of the lease, or for a month-to-month tenancy, at the commencement of the audit period.
(2) Lease and rental arrangements shall be reviewed periodically to determine if circumstances have changed and other options are available.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.