Residential Facility Class 2&3 Funding Opportunities

Funding Announcement

State Fiscal Year 2023 (July 1, 2022, through June 30, 2023)

State Fiscal Year 2023 The Ohio Mental Health and Addiction Services (MHAS) is pleased to announce that $6,250,000 in grant funding will be made available for state fiscal year 2023 to improve and assist with operating expenses and preserve housing for individuals with severe and persistent mental illness living in OhioMHAS licensed Class 2 and 3 residential facilities (RF2s and RF3s). The approved FY2022-2023 biennium budget introduced Section 337.90. COMMUNITY INNOVATIONS- appropriation item 336504 for, up to $6,000,000 in each fiscal year to be used for operating expenses that result in improved quality of life for adults with severe mental illness living in RF2s and RF3s.  An Additional $250,000 was given by Ohio Housing Finance Agency to address critical repairs.

This year, MHAS is offering up to three grant opportunities to assist operators of eligible RF2s and RF3s experiencing increased operating expenses; operating expenses that increase quality of life and minor updates and repairs and limited critical repairs of their homes that will result in improved quality of life for adults with severe mental illness living in those facilities.    This grant opportunity is focused on improvements to the physical environment, programmatic environment, physical structure, and enhanced safety that can demonstrate enhanced quality of life for residents.  Operators may apply for all 3 Tiers depending on eligibility.

Availability of Funding 

• Enhancing Quality Grant (EQG)- $6,000,000         
  • Tier 1:  An amount per bed to assist with the increase in operating costs available to all eligible RF2s and RF3s.
  • Tier 2:  Additional operating expense funding available to all operators of eligible RF2’s and RF3s. 
• Critical Repairs Grant- $250,000
  • Tier 3:  Critical repairs available to all operators who own an eligible Class 2 Facility.

Tier 1 Funding- Per-Bed Allotment

Purpose: Provides a per bed payment to RF2’s and RF3’s for operating expenses that align with the rules and regulations governing those facilities to improve the quality for adults with severe mental illness residing in those facilities.  These funds can be used for the difference in the increase in the cost of operations and the fee charged to the resident (i.e. RSS, Board Subsidy).

Definition of Operating Expense: An expense a business incurs through its normal business operations.  Operating expenses include wages, salaries and benefits for group home employees. Other operating expenses are related to the building that houses the group home such as utilities, housekeeping, lawn care, regular maintenance and repair. Food materials, supplies, personal care expenses and fees for permits and licenses are operational expenses. Contractual services to perform operational tasks, such as payroll management, financial services or transportation of residents, also qualify as operational expenses.

Cost that are Not Operating Expenses: Rent or mortgage payments, Capital expenses (money spent or set aside to pay for major repairs and improvements, such as replacing a roof or an HVAC system, rewiring, additions, structural repairs or movement of plumbing and electrical.

Availability of Funding: A total of $6,000,000 will be split between Tier 1 and Tier 2 depending on the number of approved applications and requests.  Approved applicants will receive a per bed amount based on the number of licensed beds in the home. As long as there is one resident in the home, the operator will receive a per bed amount for each licensed bed.

Eligibility Criteria: Eligible participants shall meet all of the following criteria:

• Operators of RF2s and RF3s licensed by OhioMHAS who have a current and active license in good standing; or operators with an expired license who have completed and submitted a compliant application according to OAC 5122-30-04(A)(1)(a through h), 5122-30-04(A)(2); and (F)(3)) renewal application in LACTS dated prior to November 30, 2022.
• Operators who have at least one resident living in the home.
• Operator has attended one Technical Assistance (TA) session (please see below for dates, times and registration links).
• Operators who received EQG funding in FY22 and completed, submitted and been in compliance with the final expenditure report and funding requirements.

Ineligible Participants:

• Operators who have an active license, but have an action against them at any stage in the process of Chapter 119 or the Ohio Revised Code.
• Operators who have an expired license and no renewal application or an incomplete and/or non-compliant renewal application.
• An operator may become ineligible if deemed by the OhioMHAS Bureau of Licensure and Certification to be out of compliance with the Ohio Administrative Code or Ohio Revised Code, or outstanding Plan of Correction.  
• Operators who have a pending sale or have plans to give up operations within 1 year of receipt of funds.
• Operators with no residents currently residing in the home.
• Operators who received EQG funding in FY 2022- and DID NOT submit and comply with the final expenditure report and funding requirements.

Allowable Uses of Funds: This funding is to assist operators in increasing the quality within their facilities and the programming and services available to residents.  Funds are to be used exclusively for operations of the licensed home above and beyond resident fees. 

Ineligible Uses of Funds:  Ineligible uses of the RF2 and RF3 Enhancing Quality Program include, but are not limited to the following:

• Funds may NOT be used to supplant (replace) those services that are intended to be paid for by the resident or funder (RSS, Board subsidy, private pay) which includes room, board and personal care services.
• Major construction or renovations, such as structural repairs, structural additions, roof replacement, septic system, etc.  Funds may not be used for critical repairs/maintenance.
• Operator personal expenses, i.e.- items that are not exclusively for the benefit of the residents.
• Purchase or leasing of vehicles

Tier 2 Funding- Specific operating expenses up to $10,000

Purpose: Any additional amount needed for operating expenses that align with the rules and regulations of RF2s and RF3s and which improve the quality for adults with severe mental illness residing in those facilities. 

Availability of Funding: A total of $6,000,000 will be split between Tier 1 and Tier 2 depending on the number of approved applications and requests.  Under Tier 2, applicants request the amount they need for operating expenses up to $10,000.

Eligibility Criteria: Eligible participants shall meet all of the following criteria:

• Operators of RF2s and RF3s licensed by OhioMHAS who have a current and active license in good standing; or operators with an expired license who have completed and submitted a compliant application according to OAC 5122-30-04(A)(1)(a through h), 5122-30-04(A)(2); and (F)(3)) renewal application in LACTS dated prior to November 30, 2022.
• Operators who have at least one resident living in the home.
• Operators who own the facility and have documented proof of ownership (Deed, Mortgage, or online registry), if they intend to use the funds for minor repairs
• Operator has attended one Technical Assistance (TA) session (please see below for dates, times and registration links).
• Operators who received EQG funding in FY22 and completed, submitted and been in compliance with the final expenditure report and funding requirements.

Ineligible Participants:

• Operators who have an active license, but have an action against them at any stage in the process of Chapter 119 or the Ohio Revised Code.
• Operators who have an expired license and no renewal application or an incomplete and/or non-compliant renewal application.
• An operator may become ineligible if deemed by the OhioMHAS Bureau of Licensure and Certification to be out of compliance with the Ohio Administrative Code or Ohio Revised Code, or outstanding Plan of Correction. 
• Operators who have a pending sale or have plans to give up operations within 1 year of receipt of funds.
• Operators with no residents currently residing in the home.
• Operators who received EQG funding in FY 2022- and DID NOT submit and comply with the final expenditure report and funding requirements.

Allowable Uses of Funds:  This funding is to assist operators in increasing the quality within their facilities and the programming and services available to residents.  Funds are to be used exclusively for operations of the business.  In an effort to tie these funds to quality, allowable uses were matched with licensure and certification rules.  The items listed below may help to fulfill requirements in the Ohio Administrative Code (OAC) 5122-30-12 through 5122-30-30:

• Rule 5122-30-12: Safety

Purchase and installation of the following:

• • Fire Safety equipment including smoke detectors, hard-wiring of smoke detectors, fire extinguishers, alarms, and fire alarm monitoring
  • Security lighting and safety devices for emergencies
  • Windows that open and shut according to fire safety code
  • Phones that are accessible for residents
  • Fencing for resident privacy
  • Working locks for resident rooms
  • Grab bars in bathrooms
  • Safety equipment for stoves
• Rule 5122-30-13: Nutrition and Food Safety
  • Refrigerators (at least one refrigerator needs to be accessible to residents)
  • Freezers
  • Contracting with a dietician to develop meal plans
  • Food club memberships
  • Food storage (shelving, food saver)
  • Small appliances (crock pot, instant pot, air fryer)
• Rule 5122-30-14: Sleeping and Living Space
  • Resident living space improvements
  • Mattresses, waterproof mattress covers
  • New furniture, bed-bug resistant furniture
  • Storage space, dressers, and shelves
  • Laundry appliances and supplies
  • Working locks for resident rooms
  • Personalized bedding, curtains, pictures for walls for resident rooms
• Rule 5122-30-15: Housekeeping and Property Maintenance
  • Purchase and maintenance of furnaces, lighting, electrical
  • Minor or cosmetic improvements could include durable flooring for residents, resident living space improvements, minor bathroom and/or kitchen improvements, or other minor improvements that do not require a permit. 
  • HVAC, water heaters, generators, water softener systems, and water purifiers
  • Garbage receptacles
  • Lawn care, snow removal
  • Rodent and pest control
  • Dishes, cups, flatware
  • Blankets, bedding, sheets, towels, window coverings
• Rule 5122-30-18: Accessibility and Communications
  • Telecommunication relay services for residents, text to speech assistance, interpreters, Braille and large print books
  • Accessibility for physical disabilities like ramps and railings (These may require ADA compliance)
• Rule 5122-30-19: Facility Administration and Management
  • Fire safety inspections, electrical inspection, and pest inspections
  • Membership dues for related professional membership, i.e. NAMI, OACFA, Mental Health America
  • Emergency qualified and trained staffing
  • Utilities, cable, and internet
  • Maintenance and repairs of vehicles used exclusively for the residents
  • Software for Asset Management and facility budgets
• Rule 5122-30-20: Qualifications of Operator and Staff
  • First aid and CPR training
  • Tuberculosis testing
  • COVID testing
  • Bureau of Criminal Investigation fees
• Rule 5122-30-21: Staffing Requirements
  • Staff for resident monitoring, well visits, safety checks
  • Increased staffing for the needs of residents, such as twenty-four-hour supervision or increase of onsite supervision for individuals who require more assistance in the community setting.
  • Keys for residents to access the home
  • Technology equipment (computers, WiFi upgrades in homes, technical skills training) that are accessible to staff and residents.
• Rule 5122-30-22: Resident Rights
  • Representative payee program fees
• Rule 5122-30-23: Facility Records
  • Proper storage of facility records such as computers, file cabinets, notebooks
  • Adult incontinence items
• Rule 5122-30-26: Personal Care Services
  • Adult incontinence items
• Rule 5122-30-28: Medication
  • Proper storage of medication such as lock boxes, locked refrigerator for medication
• Rule 5122-30-30: Social, Recreational and Leisure Activities
  • Transportation costs for residents (bus passes, gas, and insurance) associated with community integration activities
  • Enhanced outdoor areas including gardening equipment, outdoor furnishings, outdoor smoking area, games or activities
    • Community space (within the home) for residents to gather
    • Crafts, books, magazines games, recreational equipment, physical activity equipment for residents
    • Gym memberships, pool passes, peer recovery center memberships/dues for residents
    • Community activities and outings for all residents such as bowling, movies, and meals

Ineligible Uses of Funds:  Ineligible uses of the RF2/RF3 Enhancing Quality Program include, but are not limited to the following:

• Funds may NOT be used to supplant (replace) those services that are intended to be paid for by the resident or funder (RSS, Board subsidy, private pay) which includes room, board and personal care services.
• Current expenses in the homes annual budget including existing staff time, licenses, or contracts.
• Major construction or renovations, such as structural repairs, structural additions, roof replacement, septic system, etc.  Funds may not be used for critical repairs/maintenance.
• Operator personal expenses, i.e.- items that are not exclusively for the benefit of the residents.
• Purchase or leasing of vehicles

Tier 3 Funding- Critical Repairs Grant

Purpose: Provides safe housing for adults with severe mental illness who are extremely low income earning less than 30% Area Median Income (AMI) who reside in RF2s only.  These funds will help with critical repairs that will continue to make the homes habitable and safe for residents.

Definition of Critical Repair: Critical repairs are repairs to structural defects, electrical systems, heating systems, and plumbing systems, or required safety items that impact structure of the facility.

Availability of Funding: $250,000 for State Fiscal Year 2023.  Applicants may request up to $10,000 for eligible items.  Projects may cost more, and owner/operator will attest to cover the difference.  Tier 1 and Tier 2 funding may not be combined with Critical Repair Funding.

Operators must include costs from licensed and bonded companies/contractors and all repairs must follow local code and permit restrictions.

Eligibility Criteria: Eligible participants shall meet all of the following criteria:

• Operators of RF2s licensed by OhioMHAS who have a current and active license in good standing; or operators with an expired license who have completed and submitted a compliant application according to OAC 5122-30-04(A)(1)(a through h), 5122-30-04(A)(2); and (F)(3)) renewal application in LACTS dated prior to November 30, 2022.
• Operators who have at least one resident living in the home.
• Operators who have all residents in the home who have a severe mental illness AND who are extremely low income earning less than 30% of the Area Median Income (AMI).
• Operators who own the facility and have documented proof of ownership (Deed, Mortgage, or online registry)
• Operator has attended one Technical Assistance (TA) session (please see below for dates, times and registration links).
• Home was licensed by MHAS before November 30, 2019
• Operators who received EQG funding in FY22 and completed, submitted and been in compliance with the final expenditure report and funding requirements.

Please note that depending on the number of applications received, priority will be given to the following:

• Homes that have been licensed more than 3 years
• Homes that have 50% or more occupancy at the time of application
• Homes that have the most critical needs

Not Eligible Participants:

• Operators who have an active license, but have an action against them at any stage in the process of Chapter 119 or the Ohio Revised Code.
• Operators who have an expired license and no renewal application or an incomplete and/or non-compliant renewal application.
• An operator may become ineligible if deemed by the OhioMHAS Bureau of Licensure and Certification to be out of compliance with the Ohio Administrative Code or Ohio Revised Code, or outstanding Plan of Correction. 
• Operators who have a pending sale or have plans to give up operations within 1 year of receipt of funds.
• Operators who have an expired license and no renewal application or an incomplete and/or non-compliant renewal application.
• Operators with no residents currently residing in the home.
• Operators who received EQG funding in FY 2022- and DID NOT submit and comply with the final expenditure report and funding requirements.
• Operators who do not own their home.

Allowable Uses of Funds:

This funding is to assist operators with critical repairs of their homes to increase the safety and quality of life for the residents residing in the home.  Funds are to be used exclusively for the home indicated on the application.  Funds are to be used for critical repairs only as defined above.

The operator should get 3 bids on the project.  The chosen contractor must be licensed and bonded.

 Structural Defects:

• Unsound or hazardous conditions of walls, ceilings or floors, that threatens structural safety, such as large cracks or holes, buckling or substrate defects
• Loose, broken or missing steps that present a serious risk of tripping or falling
• Active termite infestation, or structural damage from remediated termite infestation
• Unsound or hazardous exterior stairs or porches necessary for ingress and egress from the facility, as evidenced by broken, rotting or insecure steps, floor surfaces or railings
• Buckling or sagging roof indicating a potential for structural collapse or allowing for significant air or water infiltration; serious decay to eaves and soffits
• Severe structural defects in the facility foundation indicating the potential for structural collapse or significant entry of groundwater

Electrical:

• Defective, non-insulated, frayed, outdated, or improper wiring, electrical fixtures without appropriate support, badly cracked outlets, defective electrical panel boxes, and overloaded circuits

Heating and Plumbing Defects:

• Inoperative or defective heating systems creating a potential for fire, improper connection of flues, improper installation of equipment, and/or carbon monoxide hazard
• Defective main water supply and associated piping; serious and persistent levels of rust or contamination in the drinking water

Absence of required safety features:

• Hot water heater (venting, pressure relief valve), or installation in an unsafe location without appropriate shielding
• Remediation of friable asbestos or mold

Ineligible Uses of Funds:

Ineligible uses of the Critical Repair funds include, but are not limited to the following:

• Operator personal expenses, i.e.- repairs that are not exclusively for the benefit of the residents living in the home
• Purchase or lease of a vehicle
• Mortgage payment, staffing, utilities, or food
• Operations such as: staffing, licenses, training
• Remodeling of kitchens and bathrooms, painting, building additions onto existing structure (includes porches and decks), basement conversions
• Previously completed repair work

Application Process for all 3 Funding Tiers:

All Grant related information will be posted to https://mha.ohio.gov/supporting-providers/apply-for-funding/funding-opportunities/housing-grants

• Eligible operators may apply for funds starting the week of January 9, 2023.  You can find the application at this link:  https://www.surveymonkey.com/r/Q6TQFHL
• Paper applications will not be accepted.
• Applications will be electronically submitted online via Survey Monkey.

• Operators will fill out an online application (Survey Monkey) for each home for which they are requesting funding. 
  • Operators will need to meet eligibility requirements for each home for which they are applying for funding.
  • Operators will need to meet eligibility requirements for each Tier that they are applying for funding.
  • Operators will be required to state what the funds will be expended on and will be held to these items per the final expenditure report.
  • All 3 Funding Tiers will be in one application per home.
    • Section 1 will be general information
    • Section 2 will be the Enhancing Quality Application for Tiers 1 and 2
    • Section 3 will be the Critical Repair Grant Application for Tier 3
• Operators will need to upload proof of home ownership (if requesting funds for minor repairs and/or critical repairs), W-9 Form, Direct Deposit (ACH) form and Account Verification (voided check) if you have not already done so with previous Enhancing Quality Grant funding.
• Operators will comply with and agree to assurances listed on the application.   
• Please make sure all forms are filled out with the correct information and signatures or your funds will not be able to be processed.
• Applications are due on February 24, 2023 by 3:00PM
• Applications will be reviewed by the OhioMHAS Housing and Homeless Section to ensure all application and eligibility requirements are met. Operator will be notified by email if application is approved or denied.
• All EQG funding needs to be spent by September 30, 2023.
• Operators will be required to submit an expenditure report detailing all funding spent no later than October 30, 2023. The expenditure report will be emailed with the award letter

Application Elements:

Tier 1: Required documents for upload include: W-9, Direct Deposit (ACH) Form, account verification (voided check)

Tier 2: Required documents for upload include: Documents required for Tier 1 and proof of home ownership if using the funds for minor repairs, and intended expenditure report for additional operating expenses and/or minor repairs.

Tier 3: Documents required for Tier 1, proof of home ownership, and intended expenditure report for work to be completed for the critical repair.

Attachments Required: W-9 Form, Direct Deposit (ACH) form, Account Verification (voided check) and proof of home ownership (if requesting funds for minor repairs and/or critical repairs).

Technical Assistance (TA) Sessions:

MHAS will be offering webinars to provide an overview of all three funding opportunities, review of the application and requirements, as well as an opportunity to answer general questions. All sessions will be covering the same material, please only sign up for one session as there is a registration limit for each session. Attendance at one TA session is required to be eligible for funding.

Trainings and TA Webinars Dates and Links:

Wednesday, January 11, 2023                                     3:00PM-5:00PM https://attendee.gotowebinar.com/register/4457460147925035791

Thursday, January 12, 2023                                          9:30AM-11:30AM https://attendee.gotowebinar.com/register/7107806538400054795

Friday, January 13, 2023                                                2:00PM-4:00PM https://attendee.gotowebinar.com/register/5558312080375345675

Tuesday, January 17, 2023                                            10:00AM-12:00PM https://attendee.gotowebinar.com/register/4992607850326461197

Wednesday, January 18, 2023                                     3:00PM-4:00PM               
https://attendee.gotowebinar.com/register/5789891219417542923  

Thursday, January 19, 2023                                          6:00PM-8:00PM https://attendee.gotowebinar.com/register/571477092597323276

Friday, January 20, 2023                                                11:00AM-1:00PM https://attendee.gotowebinar.com/register/3936904064335968015

Monday, January 23, 2023                                            12:00PM-2:00PM            
https://attendee.gotowebinar.com/register/4309341638012584718  

Tuesday, January 24, 2023                                            10:00AM-12:00PM https://attendee.gotowebinar.com/register/3655282852578828301

Tuesday, January 24, 2023                                            6:00PM-8:00PM               
https://attendee.gotowebinar.com/register/6513315994424425231  

Wednesday, January 25, 2023                                     1:00PM-3:00PM https://attendee.gotowebinar.com/register/2982587345054327307

Thursday, January 26, 2023                                          9:30AM-11:30AM https://attendee.gotowebinar.com/register/2943179748803223051

Wednesday, February 15, 2023                                   2:00PM-4:00PM https://attendee.gotowebinar.com/register/9135210323656602710

Thursday, February 23, 2023                                        9:00AM-11:00AM https://attendee.gotowebinar.com/register/8060957776505541206 

Timeline for Grant (Timeline is subject to change):

January 9-11, 2023	Release of RFA
January 11- February 23, 2023	TA Webinars/Calls
February 24, 2023	Application Due by 3:00PM
February 27-March 15, 2023	Application Review and Funding Decisions Determined
March 29, 2023	All Application revisions MUST be submitted to MHAS by 3:00PM
April 3-7, 2023	Award Letters Emailed
April 7, 2023	Disbursement Requests Sent to 3rd Party Payor
April 21-28, 2023	Automatic Deposits Distributed
September 30, 2023	All Funding must be expended
October 30, 2023	Final Expenditure Report Due by 3:00PM