British Columbia Order in Council — Order under Human Resource Facility (O.C. 555/2000)

O.C. 555/2000

British Columbia — Orders in Council

PROVINCE OF BRITISH COLUMBIA ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL Order in Council Na. - 555, , Approved and Ordered , Lieutenant Governor Executive Council Chambers, Victoria On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that, on the recommendation of the Minister of Finance and Corporate Relations, the attached Capital Asset Loan Criteria apply for the purposes of

section 45 of the Financial Administration Act to the making of capital funding loans under the Human Services Providers Financing Program. Minister for Children and Families Minister of Finance a~rate Relations (This

part is for administrative purposes only and is not part of the Order.) Authority under which Order is made: Act and section:- Financial Administration Act, s. 45 Other (specify):- Human Resource Facility Act March6,2000 3,Cf /00/13

1.0 Purpose HUMAN SERVICES PROVIDERS FINANCING PROGRAM (HSPFP) CAPITAL ASSET LOAN CRITERIA 1.1 To provide financial assistance in the form of a loan to a person for a purpose referred to in

section 1 of the Human Resource Facility Act (HRF

A) including acquiring, developing or operating facilities for one or more of the following purposes: (

a) a residence or facility for the care of children (

b) a special home for the care of persons with disabilities (

c) an activity centre or workshop for persons with disabilities (

d) a residence or facility for the support or treatment of persons with addictions (

e) a special human resource facility or program designated by the Lieutenant Governor in Council. 1.2 Loans under this program are made for the purpose of assisting the applicant in acquiring interest in land and improvements thereon, erecting capital improvements on land owned by the applicant, and/or purchasing equipment that will become a fixture (i.e., from part of the land, such as the heating ventilation and air conditioning equipment). Loans will not be provided for purchases of equipment that might not form part of the land. 1.3 Loans will be provided only for financing of initiatives consistent with Ministry for Children and Families (MCF) objectives. 2.0

Definitions 2.1 "Person" means a corporation, partnership or party, and the personal or other legal representatives of a person to whom the context can apply according to law. 2.2 "Human resource facility agreement" means an agreement made by the minister or any agent of the government of the Province of British Columbia with a person, who has received or is to receive a loan from the government to acquire, develop or operate a human resource facility. 2.3 "Human resource facility" means land and improvements, all or part of which provide or are intended to provide any of the services referred to in

Section 1.0 2.4 "Human re~ource purpose" means the purpose listed in

Section 1.0 2.5 in these criteria the terms "applicant(s)", "person", "group of persons", and "agencies", are used interchangeably and all have the same meaning. 3.0 General HRF A Requirements 3.1 Unless otherwise stated, loans provided under this program will be interest free. KJH C:\Documents and Settings\bdebeck\Local Settings\Temporary Internet Files\OLK5F\HSPFP Capital Asset Loan Criteria .doc

HUMAN SERVICES PROVIDERS FINANCING PROGRAM (HSPFP) CAPITAL ASSET LOAN CRITERIA 3.2 Applicants must enter into a human resource facility agreement with the Province of British Columbia. 3.3 Without limiting the terms that maybe included in an agreement under HRFA, a human resource facility agreement must include a restriction that all or part of the human resource facility must be used only for human resource purposes. \ 3.4 Pursuant to the restriction referred to in paragraph 3.3, the minister or other agent of the government will file a written notice in the Land Title Office containing: (

a) a description of the human resource facility sufficient for the registrar to identify it in the records of the Land Title Office, and (

b) a statement that the human resource facility is subject to a human resource facility agreement that includes a restriction referred to in paragraph 3.3. 3.5 When a notice is filed under HRFA, the registrar will make a notation of the filing in the proper register against the land affected. Unless the written consent of the minister, MCF is filed in the land title office: (

a) a person who owns or leases a human resource facility must not transfer, mortgage, lease or otherwise dispose of that person's interest in the human resource facility, and (

b) the registrar must not register a transfer or other disposition referred to in paragraph 3.6(a). 3.6 Once a notation is made: (

a) the human resource facility agreement and, if applicable, any amendment to it is binding on all persons who acquire an interest in the land affected, and (

b) if a transfer, mortgage, lease or other disposition of a person's interest in a human resource facility is registered without the written consent of the minister being filed as required under HRF A, the minister may apply to the Supreme Court for an order for specific performance of the human resource facility agreement by the new owner or for any other remedy. 4.0 General Project Requirements 4.1 The project must not adversely impact other services or facilities within the given sector or program delivery area. 4.2 The project must be viable without ongoing government support, and the project must have demonstrable benefits to government and its direct clients and/or other persons who depend on services funded indirectly by government. 4.3 The project should fill a recognizable and documented need with a particular sector or program area.

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HUMAN SERVICES PROVIDERS FINANCING PROGRAM (HSPFP) CAPITAL ASSET LOAN CRITERIA 4.4 Where MCF provides a loan to a project that has a recognized risk, the risk will be weighed against the requirement for public good and the appropriate security obtained, given the circumstance. 4.5 When the loan applicant is a person or a group of persons, who have contract(

s) with MCF, the maximum amount of the loan will not normally exceed 50% of the total value of all applicant annual revenues, from all sources, including revenues from contracts with MCF. In exceptional cases, with the recommendation of the MCF Evaluation Committee (see paragraph 6.4), a higher amount may be approved. 5.0 Application 5 .1 Applications for capital loans for purposes identified in

Section 1.0 of these criteria may be made by person(

s) providing services in support ofMCF programs. 5.2 All applications must be made to the Senior Financial Officer, MCF. Submission of an eligible application is not a guarantee of funding. 5.3 The amount of the loan will be determined on a case-by-case basis. 5.4 All loan approvals are subject to the availability of government funding. 5.5 All loan applications must contain the information found in the attached

Schedule A and be submitted in a format specified by MCF to facilitate evaluation and decision-making. To ensure this program is accessible to as many agencies as possible within funding limitations, evaluation will also consider the applicant's ability to obtain funding from other sources (either private or other government programs), the ability to repay the loan and the pay back period. 5.6 The MCF Evaluation Committee may waive some of the

Schedule A requirements for loans under $50,000. 6.0 Loan Application Review and Evaluation 6.1 Factors considered in assessing applications include: ? the applicant's ability to repay the loan ? a well-documented plan which supports ministry programs and objectives ? compliance with Financial Management Operating Policy (FMOP) ? the availability of funds 6.2 All the information contained in an application or provided to MCF (see

Schedule A), will be held in strict confidence subject to applicable laws including the Freedom of Information and Protection of Privacy Act. Applications must be complete before they will be considered._ KJH C:\Documents and Settings\bdebeck\Local Settings\Temporary Internet Files\OLK5F\HSPFP Capital Asset Loan Criteria .doc

HUMAN SERVICES PROVIDERS FINANCING PROGRAM (HSPFP) CAPITAL ASSET LOAN CRITERIA 6.3 The Financial Services Branch, MCF, will conduct an initial review for completeness, feasibility and adherence to government legislation, regulation and policy. 6.4 A MCF Evaluation Committee comprised of no fewer than four members will carry out a final in-depth review and analysis.

The committee will consist of: ? an Assistant Deputy Minister, MCF ? the Senior Financial Officer, MCF ? a Regional Executive Director, MCF ? the Director, Capital and Asset Management Branch, MCF ? any other person deemed appropriate by MCF for a particular application. 6.5 The applicant may be required to make a presentation, in support of the application, to the MCF Evaluation Committee.

The MCF Evaluation Committee will recommend approval, conditional approval or rejection to MCF's Senior Financial Officer, who will either approve or reject the application. 6.6 If an application is rejected, written explanation will be provided of the reasons for the rejection.

A rejected application may be re-submitted for consideration upon the applicant satisfying the conditions outlined in the rejection notice. 7 .0 Construction of Facilities 7.1 Facility design, specifications and construction budget must be approved by the Director, Capital and Asset Management Branch, MCF, prior to any tendering or awarding of construction contract( s ). 7 .2 Construction cost overruns will be the responsibility of the applicant. 7.3 During the construction phase, the construction site of the facility must be available at any time for inspection by an authorized official of MCF. 7.4 The applicant must ensure that all construction activities conform to the applicable standards and regulations of authorities having jurisdiction. 8.0 Loan Advances 8.1 Funds may be paid out using one of two methods: (1) the Lump Sum Method or

(2) Percentage of Completion Method. The method selected and the amount of the loan will be determined on a case-by-case basis at the discretion ofMCF. Option 1 - Lump Sum Method 8 .1.1 This option requires the applicant to arrange interim financing with a financial institution during the construction phase. A commitment letter will be issued by MCF KJH C:\Documents and Settings\bdebeck\Local Settings\Temporary Internet Files\OLK5F\HSPFP Capital Asset Loan Criteria .doc

HUMAN SERVICES PROVIDERS FINANCING PROGRAM (HSPFP) CAPITAL ASSET LOAN CRITERIA and should satisfy the applicant's financial institution's collateral requirements during the construction phase. 8.1.2 Upon receipt of a certified Notice of Substantial Completion (97% complete), signed by the applicant's authorized signatories (architect), MCF will pay to the applicant, the agreed loan amount.

Option 2 - Percentage of Completion Method 8.1.3 When the loan is approved, a mobilization advance for start-up costs, based on a percentage of the construction budget, will be provided. 8.1.4 The balance will be advanced monthly, in multiples of $5,000, as a percentage of completed construction and supported by the project engineer's certificate citing costs to date and costs to complete signed by the authorized applicant's signatories. 8.2 If, at any time, the cost to complete the project exceeds remaining funds available under the loan, MCF will be under no obligation to advance further funds until such time as the applicant has provided sufficient funds to cover the deficiency. 8.3 Unless otherwise stated in the loan agreement, and depending on financing arrangements, progress payment requests are to be approved by the Director, Capital and Asset Management Branch, MCF. 8.4 The applicant's certificate is to be signed by the applicant's authorized signatory certifying all funds under the loan have been employed specifically for the purpose of the benefit of the project. 9.0 Completion and Contractor Payments Withheld (Holdbacks) 9.1 Immediately after completion of the project, the applicant will submit to MCF a certificate of completion containing or which is accompanied by: ? a detailed statement, dated and signed by an officer of the applicant showing all project costs incurred and paid by the applicant ? all invoices or other evidence of payment or indebtedness for those project costs as may be requested by MCF . ? a certificate dated and signed by an officer of the applicant certifying that the project has been completed in accordance with the approved plans and specifications and to the satisfaction of the applicant. 9 .2 Unless otherwise stated in the loan agreement and depending on the financing arrangements, copies of the Architects' Certificate and Building Inspection Report must be forwarded to and approved by the Director, Capital and Asset Management Branch, MCF, before final progress payment will be paid. 9 .3 On completion of construction, the construction contractor must supply the applicant with the "as built drawings" which the applicant will hold for future reference.

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HUMAN SERVICES PROVIDERS FINANCING PROGRAM (HSPFP) CAPITAL ASSET LOAN CRITERIA 9.4 The applicant is responsible for.withholding 10% from each payment (up to 10% of the total contract value) to the contractor until substantial completion (97%) and until performance achievement or quality criteria is attested to by: ? an architect's certificate of completion which attests to the satisfactory completion of construction, which has been provided to the applicant, and ? the building has been subjected to, and passed, a building inspection. 9.5 The applicant will also withhold an additional 15% from each contractor payment (up to 15% of the total contract), to offset failure by the contractor to satisfy any obligations to subcontractors. 9.6 Forthwith after completion of the project, the applicant will submit to MCF a certificate attesting to full payment of all contractors, sub-contractors and suppliers. 10.0 Security 10.1 In addition to paragraph 3.3, as a condition of funding, depending on the amount of the loan and the risk assessment, MCF may require as security payable on demand, a mortgage of the lands and buildings.

This condition will be considered on a case by case basis. 10.2 Where collateral is held or assigned as security, the Director, Capital and Asset Management Branch, MCF, must register the loan. 10 .3 Where registration is not specified, registration must be completed: ? in accordance with general statutes and regulations of the province, and ? in consultation with, or in accordance with procedures that may be specified by, the ministry of the Attorney General. 11.0 Loan Repayment Period 11.1 At the discretion ofMCF, capital loans will normally be repayable within five years; however, in exceptional circumstances, additional periods of one or two years may be considered.

Applications that have a shorter time frame will be given preferential consideration. If the contract(

s) upon which the application is based terminate(

s) prior to the end of the repayment period, any outstanding loan balances immediately become due and payable. 12.0 Annual Repayment Amount 12.1 The annual repayment amount, of not less than 1/n (n = approved loan years) of the original loan balance, is to be paid by way of cheque to the Minister of Finance and Corporate Relations, Province of British Columbia, no later than January 31st of the fiscal year to which the payment relates (April 1st to March 31st).

If the annual repayment amount is not received arrears will be deducted, at an amount equal to the contracted loan repayment amount, from the person's regular monthly/annual MCF contracted payments unless otherwise approved by the Senior Financial Officer, MCF. KJH C:\Documents and Settings\bdebeck\Local Settings\Temporary Internet Files\OLK5F\HSPFP Capital Asset Loan Criteria .doc

HUMAN SERVICES PROVIDERS FINANCING PROGRAM (HSPFP) CAPITAL ASSET LOAN CRITERIA 13.0 Interest On Overdue Payments 13.1 - In the event that payment(

s) fall into arrears, interest will be charged at a rate of interest equal to the government's cost of borrowing, unless otherwise approved by the Senior Financial Officer, MCF. 14.0 Monitoring Responsibilities 14.1 Each year the Financial Services Branch, MCF, will review with the applicant the status of the applicant's detailed fund raising (revenue) plan to evaluate the applicant's financial position and make adjustments where necessary.

Where payments are in arrears, the Senior Financial Officer, MCF, will take whatever action is appropriate to the circumstance. 14.2 Depending on the funding agreement, upon the earliest of receipt of Certified Notice of Substantial Completion, or approval of the loan, the Senior Financial Officer, MCF will requisition funds. 14.3 The Senior Financial Officer, MCF, has the spending authority for this program. 14.4 The Senior Financial Officer, MCF will in conjunction with Legal Services Branch, Ministry of Attorney General, prepare the loan agreement. 14.5 The Senior Financial Officer, MCF will have responsibility for ensuring that the loan agreement complies with the Financial Administration Act, Financial Administration Act Regulations, and government policy and procedures. 14.6 The Senior Financial Officer, MCF, will provide periodic reports to the MCF Executive Committee on the status of all loans made under this financing program. -14.7 The Director, Capital and Asset Management Branch, MCF, will have responsibility for ensuring that the human resource facility agreement complies with HRFA. 14.8 The Director, Capital and Asset Management Branch, MCF, will have responsibility for filing a notice on title under HRFA

section 2.1 (3) in the Land Title Office and for removing the notice from title when the loan has been repaid. 14.9 Each year for the life of the loan, Senior Financial Officer, MCF, (or designate) will review the applicant's audited annual financial statements. 14.10 The Senior Financial Officer, MCF, will ensure the annual payment has been made or the funds deducted from future funding, and will provide exception reports to the MCF Executive Committee on non-compliance. 15.0 Site Inspections 15.1 The Director, Capital and Asset Management Branch, MCF will, as appropriate, ensure that physical inspections of the construction of the facility are carried out to monitor construction progress, compliance to codes, contract and drawings, contractor performance and quality criteria.

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HUMAN SERVICES PROVIDERS FINANCING PROGRAM (HSPFP) CAPITAL ASSET LOAN CRITERIA 15.2 The Director, Capital and Asset Management Branch, MCF will attend final inspection phases (substantial completion) to ensure adherence to codes, contract, and drawings, construction quality, contractor performance, errors or omissions. 15.3 The Director, Capital and Asset Management Branch, MCF monitors the use of the funds by ensuring that funds are expended in an appropriate and timely manner and that the certificate of completion has been appropriately completed and attested to by the applicant's architect. 15.4 The Director, Capital and Asset Management Branch, MCF will approve/accept the certificate of completion, on behalf ofMCF. 15.5 The Director, Capital and Asset Management Branch, MCF will ensure that inspections of the facility are carried out as required by not less than once per year, to ensure the facility, its furnishing and equipment are maintained to standards required by MCF. 15.6 The Director, Capital and Asset Management Branch, MCF will provide exception reports to the MCF Executive Committee on non-compliance.

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Schedule A HUMAN SERVICES PROVIDERS FINANCING PROGRAM (HSPFP) CAPITAL ASSET LOAN CRITERIA All HSPFP Capital Asset Loan applications must contain the following information and be submitted in a format specified by the Ministry for Children and Families (MCF) to facilitate evaluation and decision making. To ensure this program is accessible to as many agencies as possible within funding limitations, evaluation will also consider the applicant's ability to obtain funding from other sources ( either private or other government programs), the ability to repay the loan and the pay. back period. The MCF Evaluation Committee may waive some of the

Schedule A requirements for loans under $50,000. The application must include: (

a) the applicant's legal name, address, and telephone number (

b) the name, address, and telephone number of applicant's contact person (

c) MCF contract and component

schedule number(s), region(s), and other funding sources for the specific program areas affected by the application (

d) a full description of the proposed facility ( sufficient for the registrar to identify it in the records of the Land Title Office), improvements or equipment, its use and purpose, for which aid is requested (

e) the applicant's architects' drawings (as required) and estimated total cost of the proposed facility (will include construction, land, equipment costs, and soft costs such as architect and engineering fees, permits and licenses) (

f) a report on the project is to be provided by the applicant's architect or project engineer certifying adequacy of the project budget for the purpose of completing construction of the project, completeness of the plans and specifications, compliance with building codes and regulations, adequacy of structural, electrical and mechanical systems, review and approval of project budget, review and approval of survey, construction schedule, lot plan and soil report (if applicable) (

g) the applicant's prior three years audited financial statements (

h) the applicant's most recent (current) year to date financial statements (audited or un-audited) (

i) the applicant's proposed future five-year business plan (include all sources of revenue)

G) the applicant's proposed future five-year fund raising business plan (

k) the applicant's proposed future five-year cash flow projections (1) the applicant's proposed future five-year repayment plan (

m) any other financing sources (bank loans) and their pay back schedules KJH C:\Documents and Settings\bdebeck\Local Settings\Temporary Internet Files\OLK5F\HSPFP Capital Asset Loan Criteria .doc

HUMAN SERVICES PROVIDERS FINANCING PROGRAM (HSPFP) CAPITAL ASSET LOAN CRITERIA (

n) a list of liens, mortgages, encumbrances and restrictions against assets owned by the applicant (

o) the name(

s) of applicant's lawyer(s), accountant(s), and financial institution(

s) dealt with (

p) the applicant's professional and financial references (

q) if an incorporated applicant, a certified copy of the applicant's Board of Directors Resolution authorizing the loan application (

r) a list ofregistered owner(

s) of the property (

s) a written undertaking by the applicant that they shall; ? provide and maintain standards and care as required by MCF ? assume full responsibility for any deficit arising as a result of construction and operation of the proposed facility ? not expend any excess funds received from any source for the cost of the proposed facility without the prior written consent of MCF ? provide audited financial statements on an annual basis or on the request ofMCF ? maintain the facility, its furnishings, and equipment to standards as required by MCF ? make the facility available at any time for inspection by an authorized official of MCF ? immediately advise MCF, in writing, of any adverse changes to operating objectives, such as insufficient funding, with which to repay the loan. (

t) any other information MCF considers necessary or appropriate. KJH C:\Documents and Settings\bdebeck\Local Settings\Temporary Internet Files\OLKSF\HSPFP Capital Asset Loan Criteria .doc

Document details

Collection	British Columbia — Orders in Council
Citation	O.C. 555/2000
Type	order_in_council
Volume / chapter	arc oic 0555 2000
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	30481b65127511c729a7ad52e2256b388266a4cf

Source file is stored in the law ingest library (pdf).