N.M. Admin. Code § 7.29.4.8

Current through Register Vol. 35, No. 23, December 10, 2024

Section 7.29.4.8 - APPLICATION PROCEDURES FOR FINANCIAL ASSISTANCE

A. Contingent upon a sufficient balance in the Fund, the Department and the Authority may establish one or more application cycles in any state fiscal year. At the beginning of any application cycle, the Department and the Authority will notify eligible entities that applications are being accepted for financing of Capital Projects.

B. The Department and the Authority will provide forms and/or guidelines for application to apply for Program funds. The application shall be signed by the Authorized Representative and submitted to the Department. The application shall include the following:

(1) type of Financial Assistance being sought and itemization of the proposed use or uses of the Financial Assistance;

(2) detailed description of the circumstances which justify the need for the Capital Project, including:

(a) eligibility of application entity

(b) programmatic appropriateness

(c) facility need as covered in Section 9.2.a.

(d) needs of community as covered in Section 9.2 b.

(3) detailed description of the Capital Project to be financed. Information on each Capital Project must include:

(a) description of the scope of work of the Capital Project;

(b) the estimated cost of the Capital Project;

(c) the target date for the initiation of the Capital Project and the estimated time to completion;

(d) the estimated useful life of the Capital Project and selected components (furnishings, equipment, etc.), as detailed on the application form;

(e) proof of applicable licenses and certifications; and

(f) other data as requested by the Department or the Authority.

(4) a copy of the Applicant's articles of incorporation and by-laws;

(5) a copy of the Applicant's Internal Revenue Service tax exempt determination letter;

(6) a letter certifying that the Capital Project was duly authorized and approved by the Applicant's governing body;

(7) identification of the source of funds for repayment of the Financial Assistance and the source of funds to operate and maintain the Capital Project over its useful life;

(8) the Applicant's audited financial reports for the most recent three years;

(9) the requested loan payback period;

(10) any existing title insurance policies, title abstracts or searches of the real property owned by the Applicant;

(11) information on the current and proposed services of the Applicant to the sick and medically indigent;

(12) additional information as requested by the Department, Board or Finance Committee.

C. The Department shall conduct a review of the application for eligibility, completeness and programmatic priority.

D. The Department will refer the applications to the Finance Committee. The Finance Committee will consider the Capital Project and may confer with outside parties as necessary to obtain more information on the financial feasibility, Capital Project feasibility, and readiness to proceed. The Finance Committee will make a written recommendation to the Board. Such recommendation will include approval or disapproval of specific Capital Projects and the estimated costs thereof. The Finance Committee may also, at its discretion, recommend interest rates, loan periods, loan amounts and amounts of contracts for services.

E. Once a recommendation has been made on the application by the Finance Committee, the Board will act on the application no later than the next regular Board meeting at which such item may be properly considered, or 45 days after Finance Committee action, whichever comes first. The Board may approve all or part of the application as recommended by the Finance Committee. Board approval may specify, at the Board's discretion, terms and conditions of the Financial Assistance as necessary to ensure repayment, including but not limited to, maximum loan term and maximum annual payments.

F. The Board will notify the Applicant of the approval or disapproval of its application by telephone and will mail written notification by certified mail within seven working days of Board action. Written notification of the approval will be accompanied by an Agreement to be signed by an Authorized Representative of the Applicant and returned to the Board by certified mail.

G. All communications regarding an Eligible Entity's original application shall be directed to the Department.

N.M. Admin. Code § 7.29.4.8

7.29.4.8 NMAC - Rp 7 NMAC 29.4.8, 12/28/01