A. Statement of Intent. A provider that intends to undertake a renovation of its facility shall file a statement of intent with the Department at least 30 days before submitting a renovation approval request. If a renovation approval request is not filed by the provider within 60 days after the statement of intent is filed, a new statement of intent shall be filed with the Department at least 30 days before submission of a financial plan described in §B of this regulation. The statement of intent shall describe at a minimum the nature of the renovation.
B. Renovation Approval Request. A request for renovation approval shall:
(1) Be prepared in a form satisfactory to the Department; and
(2) Include at least the following information:
(a) A statement of the purpose and need for the renovation;
(b) A financial plan, prepared by an authority recognized by the Department, that:
(i) Meets the requirements of §C of this regulation, and
(ii) Demonstrates to the satisfaction of the Department that the renovation will not have an unreasonably adverse effect on the financial ability of the provider to furnish continuing care in accordance with the provider's agreements and the Act at each facility of the provider in the State; and
(c) Any further information the Department requires.
C. Financial Plan. A financial plan shall include:
(1) The anticipated costs of the proposed renovation, including:
(a) Construction costs,
(b) Architect and engineering fees,
(c) Financing costs,
(d) Legal and administrative costs, and
(e) Any other related costs;
(2) The anticipated sources and uses of funds to finance the proposed renovation;
(3) A description of any proposed financing, including anticipated terms and costs of financing;
(4) Projected 5-year cash flow statements prepared in accordance with generally accepted accounting principles; and
(5) The key assumptions underlying the cash flow statements.