“For facilities to be eligible for CCE Preservation Program OSP funds, the facility must have a critical monthly or annual operating and cash flow gap that places the facility at risk of closure or at risk of reducing the number of beds for qualified residents. CDSS does not further define “at high risk of closure.” The county may further define this for auditing/monitoring purposes, or to further prioritize among eligible facilities, such as defining a percentage deficit.
The CCE Preservation Program facility eligibility criteria intends to ensure OSP funds are covering actual or projected deficits that may put the facility at risk of closure or reducing beds for the qualified population. State guidance allows facilities to provide a written statement or attestation as part of the application process. Although counties may request further documentation to further define the funding deficit or “gap,” CDSS encourages counties to develop streamlined and low barrier applications.
Due diligence is up to the county in monitoring and compliance. Annual audited financial statements to verify the operating gap for OSP is recommended. Counties may consider tracking the operating gap(s) from the start of the project to show the long-term impact of OSP funding.”