(A) The purpose of this rule is describe the process whereby a government entity or private nonprofit agency incorporated to provide alcohol and drug addiction services may request state participation in construction or renovation of a certified residential and/or outpatient facilities for alcohol and drug addiction services to the extent that funds are available. The rule applies to funding appropriated by the general assembly to the department or funding appropriated by the general assembly to a specific alcohol and drug addiction program or board created under Chapter 340. of the Revised Code.
(B) The department shall set forth the criteria upon the availability of funds and provide notification of the funding availability. The department shall provide instructions to present an application that would result in recommended funding.
(C) Requirements for assistance under this section for funding that is not appropriated to a specific provider or board shall be as follows:
(1) Documentation that the project is consistent with their respective alcohol, drug addiction and mental health services board or alcohol and drug addiction services board, established by Chapter 340. of the Revised Code, community plan priorities.
(2) A notarized letter verifying proof of at least a twenty per cent match from the agency or the amount of match determined by the director pursuant to division (A) (3) of section 3793.20 of the Revised Code.
(3) Projects must include a written recommendation by their respective alcohol, drug addiction and mental health services board or alcohol and drug addiction services board supporting their application.
(4) Projects must fund an alcohol, drug addiction and mental health services board, an alcohol and drug addiction services board and/or an ODADAS certified non-profit provider.
(D) Prior to the disbursement of any state funds, the applicant shall enter into an agreement with the department which, subject to the department's discretion, shall contain at a minimum, the provisions set forth below:
(1) The applicant shall assure operation of the facility in accordance with the agreement.
(2) The applicant agrees to use and maintain the project for the length of the agreement for the purposes stated in the application unless otherwise agreed to in writing by the department. If the project ceases to be used for said purpose, the applicant shall reimburse the department a prorated amount of the state funds received by the applicant, or shall permit the department to operate or transfer the operation of the project, including the assignment of any contracts or other interests, to another approved organization for the balance of the agreement.
(3) The terms of the agreement shall expire the earlier of:
(a) Twenty-five years from date of the agreement, or
(b) The date when all capital bonds, any of the proceeds of which were expended for the project costs, are no longer outstanding.
(4) Applicant must agree to spend funds as proposed in the application unless the applicant submits a written change of intent request and obtains written approval from the department.
(5) The applicant must require all contractors and subcontractors to comply with all applicable federal, state and local laws in the performance of the work related to the project. The contractors and subcontractors shall accept full responsibility for payment of all unemployment compensation, insurance premiums, all income tax deductions, social security deductions and any and all other taxes or payroll deductions required for all employees engaged by the contractors and subcontractors in the performance of the work authorized by this contract.
(6) Applicant must agree to locate the project, or indicate that the project will be located upon real estate which the applicant owns in fee simple or in which the applicant has a long-term leasehold interest for a term of at least twenty-five years. Where the applicant holds a leasehold interest, the terms of lease are subject to the department's approval. The applicant must further covenant that the premises are, and shall remain for the term of the participation agreement, free and clear of all liens, encumbrances, restrictions and conditions which could prevent or interfere with the use of the project facilities, except such as may be imposed by zoning ordinances and regulation.
(7) The applicant shall grant the department a mortgage in the project premises to secure that the funds awarded for the project are used as specified in the agreement between applicant and the department. Where applicant holds a leasehold interest, applicant shall assist the department in obtaining a mortgage from the owner of the premises for the aforementioned purpose, or subject to the department's approval, the applicant shall provide the department an alternate security.
(8) The applicant shall obtain the services of registered architects or engineers to perform any design work required for the project through the department of administrative services, general services administration, state architect's 3793:1-1-04 2 office (SAO). The applicant shall also select a contractor through SAO.
(9) The applicant may be required to deposit matching funds into an escrow account maintained by the department.