AB 839: Residential care facilities for the elderly: financing.

Existing law provides for the licensure and regulation of residential care facilities for the elderly (RCFEs) by the State Department of Social Services.

Under existing law, the California Health Facilities Financing Authority Act, the California Health Facilities Financing Authority is authorized to make and fund loans through the issuance of revenue bonds, and award grants, to finance or refinance projects by participating health institutions, as defined. Under the act, projects include construction, expansion, remodeling, renovation, furnishing, or equipping, or funding, financing, or refinancing of a health facility, as defined, or acquisition of a health facility to be financed or refinanced with funds provided in whole or in part pursuant to the act. Under the act, the California Health Facilities Financing Authority Fund is created, with moneys in the fund continuously appropriated to the authority for carrying out the purposes of the act.

This bill would expand the above-described program to include RCFEs by adding an RCFE to the definition of health facility under the program. The bill would make conforming changes to related provisions. The bill would clarify that other provisions under existing law relating to health facilities would not be affected by the expanded definition, as specified.

Under existing law, an RCFE is defined as a housing arrangement chosen voluntarily by persons 60 years of age or over, or their authorized representative, where varying levels and intensities of care, supervision, and certain services are provided, and whereby persons under 60 years of age with compatible needs may be allowed to be admitted or retained in an RCFE, as specified.

Under the California Health Facilities Financing Authority Act, one of the types of health facilities is a multilevel facility, which is an institutional arrangement where an RCFE is operated as a part of, or in conjunction with, an intermediate care facility, a skilled nursing facility, or a general acute care hospital. Under that provision, elderly means a person 62 years of age or older.

This bill would modify that definition of elderly to mean a person 60 years of age or older.

By expanding the purpose for which the above-described continuously appropriated fund may be used, with regard to RCFE projects, the bill would make an appropriation from that fund. The bill would make legislative findings relating to the purpose of the bill.