CCAPP Recommended Procedures for Procuring Short-Term
Rental Space for Overflow, Quarantine, or Isolation Capacity
Issue: There is an immediate need to provide emergency short term capacity to house COVID positive clients, to house clients who are awaiting test results, or to expand capacity where demand has exceeded space available for residential treatment.
Response: CCAPP recommends the following procedure for the use of short-term rentals for these needs. These steps align with the Department of Health Care Services (DHCS) processes, and executive orders concerning the pandemic.
1. Contact your county contract manager to determine if more capacity is needed; be sure to question whether network adequacy is being met in your county. Indicate that your rate will likely be far less than out of network rates would be for clients unable to access care in the county system. Explore whether an increased rate for the additional space will be accepted due to the higher cost of short term rent and higher costs to recruit new staff. If your contract manager reports that no additional beds are needed, contact CCAPP so that we may verify the status of network adequacy for your county.
2. Locate one or more short term rentals (Airbnb, VRBO, etc.). Ensure that the home rules allow for the number of clients and staff you intend to utilize the space for. Review the features of the listing to make sure that smoke detectors, CO2 detectors, and fire extinguishers are in place before choosing a rental. Check to see that there is no local ordinance limiting the length of rental for the location (some cities limit short term rentals to 30 days).
3. Calculate the approximate cost of adding additional capacity using a short term rental. Include increased cost of daily rent. Typically rent is two to three times higher than standard leases, although many vacation rentals are suffering badly with low bookings and will likely make a deal for lower terms and longer booking, especially during the winter months. “Hosts” can be approached via message section on the apps. Hosts are allowed to reduce contracts by sending a special invite through the app to provide a rate that is lower than the advertised rate. DO NOT make agreements to pay hosts outside of the app. All protections are still provided when a reduced rate is established as long as payment is made through the app.
4. Complete the Supplemental Application Request for Additional Services (DHCS 5255) – Adding the address of the short-term rental as an integral facility for your license.
5. Complete the Facility staffing Data DHCS 5050.
6. For lease agreement, draft a letter indicating that you intend to use the short-term rental to provide residential alcohol and/or other drug treatment services. Make a screen copy of the short-term rental fee screen and a screenshot showing that the property is available for the time period expected to be rented.
7. Electronically submit Supplemental Application (DHCS 5255), Facility Staffing Data form (DHCS 5050), Standard From 850, floor plan, and lease agreement letter for review to [email protected].
8. If necessary, submit a fee waiver as follows:
Written request to DHCS for a fee reduction or waiver. The request must include:
• Identify whether the request is for a reduction or waiver of fee(s);
• Identify the type of fee requested to be reduced or waived (i.e., renewal application fee, relocation fee, etc.) and the specific fee amount being requested to pay if seeking a fee reduction;
• Describe how this reduction or waiver is specific to the COVID-19 emergency;
• Describe the economic hardship or displacement that occurred due to the emergency; • Identify the provider type (MHRC, PHF, NTP, DUI, AOD Residential or Outpatient);
• Identify the provider number and legal entity name; • Identify the program/facility name;
• Identify the facility physical address;
• Identify the facility mailing address; and
• Identify the Program Director and contact person.
9. Contact the fire department for the jurisdiction where the short-term rental is located to encourage a quick response for a fire inspection to complete Standard Form 850 – Fire Inspection Safety Request.
10. Book the short term rental for the day in which the inspection will occur; bring exit signs and fire extinguishers in the event that the fire department requires these and they are not present. If possible, coordinate this time with DHCS so that the video inspection of the premises can be made on the same day.
11. Attend the inspection complete Standard Form 850 and video site inspection.
12. Notify insurance provider concerning use of offsite space for client quarantine or capacity expansion to ensure that coverage is extended for this purpose.
The term of the license will be the standard two years regardless of the short term rental contract. Programs must decide before the short term rental booking expires whether they intend to lease for additional months. No action is necessary to extend the short term rental agreement. If the program decides to no longer use the short term rental, it must notify the department using Supplemental Application (DHCS 5255). If the space is surrendered, using the space at a later time will require submitting Supplemental Application (DHCS 5255) to add the space (repeat the process). The fire clearance shall remain valid for two years only where there are no changes in capacity or ownership of the program.