7 Steps to Open a Residential Care Facility in California
Step 1: Become an Administrator
If you’re reading this, chances are that you have already done this. If not—get on it! You’ll need to do the following before moving on to step two:
Take the 80-hour Initial Certification Training Program. We offer one for RCFE and, soon, ARF.
Pass the state-proctored exam of 100 questions administered by CDSS with a minimum score of 70%. This must be within 60 days of completing the ICTP.
Get a Live Scan fingerprint clearance. Use Form LIC 9163 Request for Live Scan Service. You can find a Live Scan office at https://oag.ca.gov/fingerprints/locations.
Within thirty (30) days of receiving notification of passing, submit a completed initial administrator application packet to the ACS (Administrator Certification Section). Use Form LIC 9214 Application for Administrator Certification.
Of course, there are some folks who own a residential care facility and are not the primary administrator. That’s a whole different story—we’ll explain that in the future.
Step 2: Facility Preparation
Securing a Location
You can’t run a residential care facility without a physical space. Many folks think that you have to own the property you intend to run your facility in. This is untrue. You can also lease a property—you just have to have proof of this. Licensing just wants to know if you have control over a property.
Financial Stability
Licensing also requires that you have three times your monthly operating cost readily accessible and in the name of the applicant. It can be in the form of cash or credit. A six-bed facility can range from $65,000 to $75,000. However, if you’re purchasing a facility that is currently operating, the required sum is only one month of operating costs. You need to furnish your facility, as well as complete any remodeling that you decide to do. Additionally, you need to make sure that your building is up to code (*step three).
Establishing a Business Entity
A residential care facility is a business. You must register your business entity with the California Secretary of State. There are a variety of different types of business tax structures you can register as, each with its own pros and cons. Most assisted living facilities register as a Limited Liability Company (LLC), as its tax structure often works the best for residential care facilities. Consult your tax or business advisor for your specific needs.
Marketing Plan
Your assisted living will not succeed if no one knows about it. What is your plan for marketing your facility? It’s important to:
Understand the demographics of the area you will be serving.
Factor in a marketing budget.
Hire a designated marketing coordinator or outside firm.
Step 3: Contact your Local Fire Marshal for a Pre-Inspection
Safety is an integral part of running an assisted living facility. Fire safety is of the utmost importance, especially in California. During your licensing review process, your analyst will order an inspection of your property, but it is recommended that a request for a pre-inspection is made in order to be prepared for the actual inspection. But what happens during a pre-inspection? According to Health and Safety Code 13235a, “At the time of the pre-inspection, the primary fire enforcing agency shall provide consultation and interpretation of fire safety regulations, and shall notify the prospective licensee of the facility in writing of the specific fire safety regulations which shall be enforced in order to obtain fire clearance approval.” Essentially, the fire marshal shall inform you of what specific regulations are in place, and whether your home meets compliance criteria. . The clearance will tell you how many ambulatory, nonambulatory, and bedridden residents are permitted based on the build configuration of the home. Your hope is to be cleared for full capacity non-ambulatory and one bedridden resident.
Step 4: Complete the License Application
If starting your own assisted living facility is like climbing a mountain, then completing the license application is often the last push before you reach the summit. It is hard and complicated. Plus, the completed application will have approximately 400 pages to be reviewed by CCLD. Pro tip: Use a service to prepare the License Application for you. It’s incredibly lengthy, and mistakes can prolong this entire process. We have over 25 years of experience doing this with an excellent success rate. Let Community Care Options prepare your application for you. The average time of Licensure is 90-120 days. Once you receive your license (hooray!), you can start to find residents and hire staff.
Step 5: Hire Staff
You cannot run a facility on your own. Before your application is approved, you must have a certified administrator in position. It could be you, the licensee, or someone you have hired. Based on the number of beds your facility has, additional positions to consider are: janitorial, administrative, caregivers, activity coordinators, wellness staff, etc. Every employee must be able to pass a fingerprint clearance, just like yours. Once hired, you must train them appropriately and adequately. (We offer staff training packages to make this easier for you.)
Step 6: Obtain Residents
What’s the point of starting this if you don’t have any residents? We recommend establishing relationships with local referral service providers, such as your local social services office or community organizations. Specific Senior Referral Services exist as well—we’re talking from experience, seeing as we have one.
Step 7: Ongoing Compliance
So, your facility is up and running. You have residents, staff—you’ve made it! But the work doesn’t stop there. You must have processes in place to ensure your facility continues to run smoothly once you open it. This includes, but is not limited to:
A staff training schedule
Documentation management
Yearly recertification
Plans for expansion
Succession plans
And more!
It takes a lot of work, patience, and determination to run an assisted living facility. But as these populations continue to grow, the need for assisted living facilities is only increasing. And by owning and operating an assisted living, you are directly making a difference in the lives of many.
