.16 Action of the Department on Renovation Approval Request.

A. Approval Standards. The Department shall approve a renovation approval request when it determines that a reasonable financial plan, prepared by an authority recognized by the Department, has been submitted for the proposed renovation, and the plan demonstrates that:

(1) The anticipated sources of funds to finance the proposed renovation are equal to or greater than the anticipated uses of funds for the proposed renovation; and

(2) The proposed 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.

B. No Construction Before Approval. A provider may not begin construction of a renovation until the provider receives written approval of the renovation approval request from the Department for the proposed renovation.