LAC 48: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 amy 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.