§ 7094. Requirements for Construction Projects on Leased Property.

If a Clinic proposes to use Grant funds for a Project other than equipment acquisition on property where the Clinic is a lessee under a lease agreement, the following requirements shall be satisfied prior to any release of Grant funds pursuant to Sections 7093:

(1) The lease agreement shall provide the Clinic full access to the site to carry on its healthcare purposes. The term of the lease agreement must be at least 5 years.

(2) The Grant Agreement must provide that if the lease agreement is terminated prior to the term provided in (1) above, the Authority is entitled to recover the Grant funds pursuant to Section 7096.

(3) No Projects on leased property shall include improvements to any common areas that are shared with other tenants or areas that are not leased by the lessee Clinic under the lease agreement.

(4) Prior to approval of the Grant by the Authority, the Applicant shall submit the proposed lease agreement for review.

HISTORY

1. New section filed 11-28-2005 as an emergency; operative 11-28-2005 (Register 2005, No. 48). A Certificate of Compliance must be transmitted to OAL by 3-28-2006 or emergency language will be repealed by operation of law on the following day.

2. New Note filed 12-14-2005 as an emergency; operative 12-14-2005 (Register 2005, No. 50). A Certificate of Compliance must be transmitted to OAL by 4-13-2006 or emergency language will be repealed by operation of law on the following day.

3. Repealed by operation of Government Code section 11346.1(g) (Register 2007, No. 11).

4. New section filed 3-13-2007; operative 3-13-2007 pursuant to Government Code section 11343.4 (Register 2007, No. 11).

Note

Note: Authority cited: Sections 15437 and 15438.6(d), Government Code. Reference: Sections 15438(q) and 15438.6, Government Code.