[Tools & Resources]

FCF Basics Explained

By now, you may have heard the news about MA DDS changes to reimbursements for capital leases: as of October 1, 2019, all development costs will be included in the occupancy rate calculation as long as the capital lease company applies for and is awarded a Facilities Consolidation Loan Program (FCF) loan.

You can read more about those changes here, but if you’re wondering what in the world FCF is – we are here to help with some of the basics.

What is FCF?

The Facilities Consolidation Fund (FCF) is a loan program administered by Community Economic Development Assistance Corporation (CEDAC) that finances up to 50% of total development cost for clients of the Department of Mental Health (DMH) or the Department of Developmental Services (DDS).

Basically, FCF provides permanent, deferred payment loans for 30-year terms for projects that meet the guidelines.

FCF History

FCF was created in 1993 as a $50 million loan fund for non-profit developers developing community residences in response to the closing of institutions throughout the State. CIL has been incorporating FCF into our MA group home development since the mid-90’s to move the last individuals out of Belchertown State School, as well as the Dever School in Tauton.

Who is Eligible?

  1. Only for non-profits, or companies that partner with a nonprofit where the nonprofit has majority control.
  2. Only available for individuals affected by the facilities consolidation and community expansion and restructuring initiatives of DMH and DDS.  
  3. People currently in homes, on a wait list, in the community but under-served, people with no other place to go, homeless.
  4. Need an agency committed to funding appropriate level of support services.

What Kind of Housing is Eligible?

The goal for all housing applying for FCF must be to provide non-institutional settings which respond to the needs and desires of individuals being served. Specific examples include:

  • Existing single or multi-family with 2-6 bedrooms
  • New construction homes
  • Accessible homes
  • Single room occupancy units
  • Group homes
  • Units within larger developments in which DMH or DDS consumers are integrated

Housing applying for FCF also must meet specific design guidelines, and those guidelines are dependent on which State agency:  DMH – None, Building Code Compliance only; DDS – Program Design and Cost Guide for new construction and renovation.

Why Apply for FCF?

Under the new guidelines, MA DDS reimburses 100% of development costs for homes that apply for and are awarded FCF. This enables service providers to take advantage of CIL's financing, while CIL handles the application process and ensures that homes meet the applicable design requirements. Additionally, once FCF funds are received, the agency's lease payments are decreased proportionately. 

Want to know more about FCF and working with CIL? We’d welcome the chance to talk with you. If you’d like more reading, extensive information can be found on CEDAC’s website.

 


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