La. Admin. Code tit. 48 § VII-712

Current through Register Vol. 50, No. 9, September 20, 2024

Section VII-712 - Organizational Loan

A. Organizational loans are those made to non-profit entities or groups of six or more individuals for the purpose of enabling recovering persons to establish a group recovery home.

B. Restrictions on Organizational Loans

1. must provide for housing for six or more residents in recovery;

2. limited to not less than $500 nor more than $4,000 per group;

3. must be repaid within 24 months of issuance;

4. each loan subject to five percent simple interest rate;

5. may not be used for purchases of property of a personal nature, nor for personal expenses other than as approved by the department and/or the applicant group; uniforms and travel expense to attend work, excepted;

6. any personal property purchased (such as home furnishings) becomes the property of the group recovery home;

7. must be used to defray rental costs, security utility and other required deposits, and basic furnishings required for occupancy;

8. a portion of the proceeds from an organizational loan may be used to liquidate a prior "bridge loan" made to a sponsoring organization on behalf of the resident group;

9. applicant group must meet eligibility requirements established in §709;

10. chartered organizations applying on behalf of a group of six or more individuals must provide assurance of compliance with §703. C and §705 above, and may impose no other regulation on the group recovery home or its residents.

La. Admin. Code tit. 48, § VII-712

Promulgated by the Department of Health and Hospitals, Division of Alcohol and Drug Abuse, LR 15:1081 (December 1989), amended LR 17:603 (June 1991), amended by the Office of Alcohol and Drug Abuse, LR 18:845 (August 1992), LR 19:346 (March 1993).

AUTHORITY NOTE: Promulgated in accordance with R.S. 28:771 and R.S. 36:258 (F)(3).