Section 41.37. Community residence and residential treatment facility for children and youth development grants

(a)  The  commissioner  of  the  office  of  mental  health   or   the
  commissioner  of  the  office  of  mental  retardation and developmental
  disabilities is authorized, within appropriations made therefor, to make
  grants to local governmental  units  and  voluntary  nonprofit  agencies
  developing  a community residence as defined in subdivision twenty-eight
  of section 1.03 of this chapter.  The  commissioner  of  the  office  of
  mental  health  is  authorized,  within appropriations made therefor, to
  make grants to voluntary nonprofit  agencies  developing  a  residential
  treatment  facility for children and youth. Such grants shall be limited
  to the development costs incurred prior to the operation of a  community
  residence or a residential treatment facility for children and youth, or
  for  development  costs  incurred  to  expand  the  capacity  to provide
  services at such residences and facilities.
    Development costs which may be eligible for up to one hundred  percent
  reimbursement under this grant include:
    1.  reasonable professional fees and other fees for services which are
  necessary for project development;
    2. initial staffing;
    3. up to six months rent,  construction  loan  or  permanent  mortgage
  payments,  together with other necessary costs associated with rental or
  ownership of property;
    4. reasonable and necessary fees paid to secure financing;
    5. furniture; and
    6. reasonable rehabilitation costs.
    (b) Application for grants shall be made in the manner  and  on  forms
  prescribed  by  the  appropriate  commissioner.  Each commissioner shall
  establish schedules, subject to the approval  of  the  director  of  the
  division  of the budget, indicating the maximum development cost per bed
  for such community residences and residential treatment  facilities  for
  children  and  youth.  Such  schedules  may  include  varying  rates for
  distinct geographic areas of the state, if in the determination  of  the
  commissioner   the  location  of  an  eligible  community  residence  or
  residential treatment facility for children and youth has direct bearing
  on the level of development costs. The commissioner may  also  establish
  varying  rates  based  on the size of an eligible community residence or
  residential treatment facility for children and youth.
    (c) No grant will be awarded by the commissioner if the projected  per
  bed   development  cost  for  the  community  residence  or  residential
  treatment  facility  for  children  and  youth  exceeds   the   schedule
  established in subdivision (b) of this section.
    (d)  No  such  grant will be awarded unless there is prior approval by
  the local  governmental  unit  of  the  area  in  which  such  community
  residence or residential treatment facility for children and youth is to
  be located.
    (e)  The  state comptroller, or his legally authorized representative,
  is authorized and empowered to examine the books  and  accounts  of  the
  offices  relating to program development grants and from time to time to
  examine the books and  accounts  of  each  local  governmental  unit  or
  voluntary   nonprofit   agency  receiving  such  grants,  including  its
  receipts, disbursements, contracts, leases, loans and any  other  moneys
  relating to its financial operation.