Supplement 8H Consent 2013 0506 - Laserfiche WebLink

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line 1 (i) The loan shall have a principal obligation not in excess of line 2 an amount equal to 90 percent of the total construction cost. line 3 (j) The borrower shall offer reasonable assurance that the line 4 services of the health facility will be made available to all persons line 5 residing or employed in the area served by the facility. line 6 (k) The office has determined that the facility is needed by the line 7 community to provide the specified services. In making this line 8 determination, the office shall do all of the following: line 9 (1) Require the applicant to describe the community needs the line 10 facility will meet and provide data and information to substantiate line 11 the stated needs. line 12 (2) Require the applicant, if appropriate, to demonstrate line 13 participation in the community needs assessment required by line 14 Section 127476. line 15 (3) Survey appropriate local officials and organizations to line 16 measure perceived needs and verify the applicant’s needs line 17 assessment. line 18 (4) Use any additional available data relating to existing facilities line 19 in the community and their capacity. line 20 (5) Contact other state and federal departments that provide line 21 funding for the programs proposed by the applicant to obtain those line 22 departments’ perspectives regarding the need for the facility. line 23 Additionally, the office shall evaluate the potential effect of line 24 proposed health care reimbursement changes on the facility’s line 25 financial feasibility. line 26 (6) Consider the facility’s consistency with the Cal-Mortgage line 27 state plan. line 28 (l) In the case of acquisitions, a project loan shall be guaranteed line 29 only for transactions not in excess of the fair market value of the line 30 acquisition. line 31 Fair market value shall be determined, for purposes of this line 32 subdivision, pursuant to the following procedure, that shall be line 33 utilized during the office’s review of a loan guarantee application: line 34 (1) Completion of a property appraisal by an appraisal firm line 35 qualified to make appraisals, as determined by the office, before line 36 closing a loan on the project. line 37 (2) Evaluation of the appraisal in conjunction with the book line 38 value of the acquisition by the office. When acquisitions involve line 39 additional construction, the office shall evaluate the proposed line 40 construction to determine that the costs are reasonable for the type 96 AB 975— 17 —