California Health and Safety Code 1562.15 – (a) (1) If a licensee who is also the owner of an adult …
(a) (1) If a licensee who is also the owner of an adult residential facility notifies the city and county of an intent to sell the property, as required by Section 1562.2, the licensee shall give the city or county the first opportunity to make an offer to purchase the property, at a price that reflects its fair market value, and continue the operation of the adult residential facility. The city or county shall notify the licensee of its intent to purchase the property within 60 days after the notice required by Section 1562.2.
(2) (A) After the city or county has made an offer pursuant to paragraph (1), the licensee may accept that offer or any other offer received by the licensee.
Terms Used In California Health and Safety Code 1562.15
- County: includes city and county. See California Health and Safety Code 14
- department: means State Department of Health Services. See California Health and Safety Code 20
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Residential facility: means any family home, group care facility, or similar facility determined by the department, for 24-hour nonmedical care of persons in need of personal services, supervision, or assistance essential for sustaining the activities of daily living or for the protection of the individual. See California Health and Safety Code 1502
- State: means the State of California, unless applied to the different parts of the United States. See California Health and Safety Code 23
(B) Notwithstanding paragraph (1), an individual or entity planning to continue operating the licensed adult residential facility may make an offer to purchase the facility, and the licensee may accept the offer at any time. The individual or entity that makes an offer to purchase a facility pursuant to this subparagraph shall provide a written statement to the licensee and the department that the individual or entity agrees to continue the operation of the adult residential facility and apply for licensure as an adult residential facility upon completion of the sale of the existing facility.
(3) A city or county shall have maximum flexibility in seeking and securing available funding sources to purchase a residential care facility under this section, including any federal, state, local, and private funds. Funding from multiple sources may be combined for purposes of this paragraph. The purchase of property under this section is subject to all existing requirements otherwise applicable by law to the purchasing city or county.
(b) (1) A city or county that purchases an adult residential facility pursuant to this section may either take over operation of the facility, or, if possible, enter into a long-term lease for its operation with a nonprofit or for-profit entity. A nonprofit or for-profit entity selected by the city or county shall have a demonstrated history of providing adult residential facility services to individuals in need of those services, including, but not limited to, Medi-Cal and Supplemental Security Income (SSI) recipients.
(2) A lease entered into pursuant to paragraph (1) shall include a requirement that the lessee maintain licensure of the property as an adult residential facility.
(Added by Stats. 2020, Ch. 146, Sec. 3. (AB 2377) Effective January 1, 2021.)