Loans

1. Subject to limitations in this chapter, the department may approve loans for costs related to the renovation of a nursing facility, basic care facility, or assisted living facility. 2. The interest rate for loans distributed from the long-term care facility loan fund is two percent of the outstanding principal balance of the loan. 3. The department shall approve loans to the extent funds are available based on the criteria set forth in this chapter. The department's denial of an application for a loan does not preclude an entity from making future applications. 4. Effective July 1, 2001, projects converting nursing facility bed capacity to basic care bed capacity shall be given preference for a loan. 5. The department shall not approve loans to renovate an assisted living facility unless the facility can demonstrate that accommodations or housing costs are affordable to individuals eligible for assistance. 6. Loan funds may not be awarded for costs that are payable through other state, local, or federal programs. 7. Loan funds may not be awarded to refinance debt. 8. Loan funds may not be awarded for new construction whether attached or detached from an existing building.