Documentation of Commencement of Construction and Substantial

Documentation of Commencement of Construction and Substantial Progress. The following documentation may be reviewed to determine whether commencement of construction or other preparation has been substantially undertaken during a valid Certificate of Need period and whether the holder is making a good faith effort to obligate approved expenditures. A. Commencement of Construction — all of the following must be demonstrated: 1. A letter from the Director of the Health Facilities Licensure and Certification Division stating that final plans have been submitted and approved, prepared by an architect or architectural firm licensed in Mississippi, and that the site is approved. 2. A copy of a legally binding written contract executed by the holder and a contractor to construct and complete the project within a reasonable designated time, stating the specific capital expenditure amount conforming to the amount previously approved. 3. A copy of the contractor’s Mississippi license. 4. A copy of the building permit issued by the applicable governing authority, or if no building permit is required, a letter from the applicable authority stating such. 5. A letter from the applicable governing authority that the proposed project is in compliance with applicable zoning regulations, or if no regulations exist, a letter to that effect. 6. A statement in writing that the proposed construction is not in violation of the Coastal Wetlands Protection Act, Miss. Code Ann. § 49-27-1 et seq., or any federal law pertaining to construction in a federally designated wetlands area. 7. Documentary proof that a progress payment of at least one percent (1%) of the total construction cost stated in the contract has been paid by the holder to the contractor, exclusive of site preparation costs. Page 52 — Mississippi State Department of Health 8. A written statement signed by the holder and the contractor that all site preparation work has been completed. 9. A written statement signed by the holder and the contractor that actual bona fide construction has commenced and describing the details of such preliminary construction. 10. A copy of the Proceed to Construction Written Order previously given to the contractor. B. Other Preparation Substantially Undertaken During the Valid CON Period — evidence may include but is not limited to: For construction projects: acquisition of property (title, evidence of payment); completion of topographic or boundary surveys; site preparation (contractor selection, contract, evidence of payment); completion of site development plan; and architectural plans and drawings (architect selection, contract, evidence of payment, submission to Health Facilities Licensure and Certification, and any letter of findings, comments, or approval of commencement of construction). For establishment of service: hiring or entering contracts with necessary staff or medical professionals; submission of a fire/life safety code inspection request; submission of an application for facility inspection or licensure; and acquisition of equipment (title, lease, etc.). C. Good Faith Effort to Obligate Approved Expenditure — documentation may include, in addition to items under A and B above: documentation of capital expenditure made to date; evidence that permanent financing has been obtained if the approved capital expenditure has not been obligated; if financing has not been obtained, evidence of fund commitment from a lending institution; and evidence of contractual obligation to expend funds.