Fla. Admin. Code Ann. R. 69O-193.050 - Minimum Liquid Reserve Requirement
(1) A Minimum Liquid Reserve (MLR)
Calculation shall be filed with the Office, on or before May 1 of each year if
the provider's fiscal year end is December 31 or within 120 days of the last
day of the fiscal year of the provider if the provider has declared a fiscal
year other than the calendar year, on Form OIR-A3-477, "Minimum Liquid Reserve
(MLR) Calculation," effective 7/20, hereby incorporated by reference and
available at
https://www.flrules.org/Gateway/reference.asp?No=Ref-14462.
The filings shall be submitted electronically at
https://www.floir.com/iportal.
(2) The Office may require a recalculation of
the minimum liquid reserve requirement and resubmission of Form OIR-A3-477 in
the event of additional long-term financing or other occurrences resulting in a
change to the aggregate amount of all principal and interest payments due
during the fiscal year on any mortgage loans or other long-term financing or a
change to all leasehold payments and all costs related to such payments
financing of the facility. Any increase in required minimum liquid reserves
must be funded not later than 61 days after the minimum liquid reserve
calculation is filed.
(3) For
purposes of the MLR requirement, long-term financing includes, lease payments,
mortgage payments, the long-term portion of any construction loan, and any
long-term debt between affiliates or controlling parties of the provider that
relate to the real property or fixtures of a facility.
(4) Where a provider has elected to fund the
MLR upon release of entrance fees as provided by Section
651.023(6)(d),
F.S., the funds shall be deposited directly from the entrance fee account into
MLR accounts.
(5) A provider shall
have and maintain reserves for property taxes as provided in Section
651.035, F.S., even if there is
no long-term debt or financing on the facility.
(6) To request Office approval of a
withdrawal of MLR funds, a provider must file Form OIR-A3-1284, "Request for
Withdrawal from Minimum Liquid Reserves," effective 7/20, hereby incorporated
by reference and available at
https://flrules.org/Gateway/reference.asp?No=Ref-14463.
The filing shall be submitted electronically at
https://www.floir.com/iportal.
(7) If a provider, or its escrow agent or
trustee, intends to use funds from a debt service reserve that is included in
computing a provider's minimum liquid reserve pursuant to Section
651.035(1)(b),
F.S., rather than filing Form OIR-A3-1284 as required in subsection (6) above,
the following process applies:
(a) The
provider, or its escrow agent or trustee if so authorized in the agreement
under which such debt service reserve is held, shall submit the documents
listed below.
1. An affidavit, sworn to by an
officer or director of the provider, stating that the provider anticipates
being unable to make its scheduled debt service payment and a withdrawal from
the debt service reserve included in the minimum liquid reserves pursuant to
Section 651.035(1)(b),
F.S., is required to avoid a payment default. The affidavit shall include all
of the following information:
a. The amount
of the payment;
b. The payment due
date;
c. The maximum amount of the
withdrawal needed to make the payment;
d. The date the anticipated date of the
withdrawal;
e. The account(s) from
which the withdrawal will be made, which should match the account information
and escrow statements previously provided to the Office; and
f. If there is a discrepancy in this account
information, a written explanation of the discrepancy and any relevant
documentation at the time of filing.
2. A document providing the following
information with respect to the effect of the withdrawal on the provider's
minimum liquid reserves and compliance with Section
651.035, F.S.
a. A statement of whether the lender or
trustee will require the provider to deposit additional funds in the debt
service reserve to repay the amount withdrawn.
b. If the provider will be required to
deposit additional funds in the debt service reserve to repay the amount
withdrawn, the anticipated or proposed schedule for funding.
c. If the withdrawal will result in the
provider being out of compliance with Section
651.035, F.S., the provider
shall submit a preliminary plan or anticipated timeline for coming into
compliance. If the provider intends to work with a consultant to establish a
plan, as proscribed in its financing documents, the provider should provide a
brief explanation of that process and the anticipated date that such a plan
will be completed.
(b) The request must be made at least 30 days
before the anticipated date of the withdrawal.
(c) The Office will approve requests that
contain all of the components specified in paragraph (7)(a) within 30 days of
filing.
(d) The Office's approval
of a withdrawal from a debt service reserve included in the minimum liquid
reserves pursuant to Section
651.035(1)(b),
F.S., does not constitute approval of the plan submitted pursuant to
sub-subparagraph (7)(a)2.c. above.
(e) The filing shall be submitted
electronically at https://www.floir.com/iportal.
Notes
Rulemaking Authority 651.015(3), 651.026 (2)(d), 651.035(9) FS. Law Implemented 651.026, 651.035 FS.
New 7-16-92, Formerly 4-193.050, Amended 3-12-20, 7-21-22.
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