Oregon Department of Human Services, Aging and People with Disabilities and Developmental Disabilities

Rule Rule 411-054-0012
Requirements for New Construction or Initial Licensure

(1) An applicant requesting approval of a potential license for new construction or licensing of an existing building that is not operating as a licensed facility, must communicate with the Department before submitting a letter of intent as described in section (3) of this rule.
(2) Before beginning new construction of a building, or purchase of an existing building with intent to request a license, the applicant must provide the following information for consideration by the Department for a potential license:
(a) Demonstrate a past history, if any, of substantial compliance with all applicable state and local laws, rules, codes, ordinances, and permit requirements in Oregon, and the ability to deliver quality services to citizens of Oregon; and
(b) Provide a letter of intent as set forth in section (3) of this rule.
(3) LETTER OF INTENT. Before applying for a building permit, a prospective applicant, with intent to build or operate a facility, must submit to the Department a letter of intent that includes the following:
(a) Identification of the potential applicant.
(b) Identification of the city and street address of the intended facility.
(c) Intended facility type (for example, RCF, ALF, IIC, or memory care), the intended number of units, and maximum resident capacity.
(d) Statement of whether the applicant is able to provide care and services for an underserved population and a description of any underserved population the applicant is able to serve.
(e) Indication of whether the applicant is able to provide services through the state medical assistance program.
(f) Identification of operations within Oregon or within other states that provide a history of the applicant’s ability to serve the intended population.
(g) An independent market analysis completed by a third-party professional that meets the requirements of section (4) of this rule.
(4) Conversion Facility Letter of Intent. If a nursing facility licensee has elected to convert the license to a residential care facility through the conversion facility process, the licensee must submit a conversion facility “Letter of Intent” to the Department at least 90 days prior to the planned closure of the nursing facility. This letter must outline the:
(a) Effective date of the proposed conversion; and
(b) Licensee’s intent to follow OAR 411-085-0025 (Change of Ownership or Operator and Closure)(2) regarding nursing facility closure requirements.
(5) MARKET ANALYSIS. The applicant must submit a current market analysis to the Department before applying for a building permit. A market analysis is not required for CFs or change of owner applicants of existing licensed buildings. The market analysis must include:
(a) A description of the intended population to be served, including underserved populations and those eligible to receive services through the state medical assistance program, as applicable.
(b) A current demographic overview of the area to be served.
(c) A description of the area and regional economy and the effect on the market for the project.
(d) Identification of the number of individuals in the area to be served who are potential residents.
(e) A description of available amenities (for example, transportation, hospital, shopping center, or traffic conditions).
(f) A description of the extent, types, and availability of existing and proposed facilities, as described in ORS 443.400 (Definitions for ORS 443.400 to 443.455) to 443.455 (Civil penalties), located in the area to be served.
(g) The rate of occupancy, including waiting lists, for existing and recently completed developments competing for the same market segment.
(6) The Department shall issue a written decision of a potential license within 60 days of receiving all required information from the applicant.
(a) If the applicant is dissatisfied with the decision of the Department, the applicant may request a contested case hearing in writing within 14 calendar days from the date of the decision.
(b) The contested case hearing shall be in accordance with ORS chapter 183.
(7) Before issuing a license, the Department shall consider the applicant’s stated intentions and compliance with the requirements of this rule and all structural and other licensing requirements as stated in these rules.
(8) BUILDING DRAWINGS. After the letter of intent has been submitted to the Department, one set of building drawings and specifications must be submitted to FPS and must comply with OAR chapter 333, division 675.
(a) Building drawings must be submitted to FPS:
(A) Before beginning construction of any new building;
(B) Before beginning construction of any addition to an existing building;
(C) Before beginning any remodeling, modification, or conversion of an existing building that requires a building permit; or
(D) After application for an initial license of a facility not previously licensed under this rule.
(b) Drawings must comply with the building codes and the Oregon Fire Code (OFC) as required for the occupancy classification and construction type.
(c) Drawings submitted for a licensed assisted living or residential facility must be prepared by and bear the stamp of an Oregon licensed architect or engineer.
(9) 60 DAYS BEFORE LICENSURE OR OPENING A CONVERSION FACILITY. At least 60 days before anticipated licensure, the applicant must submit to the Department:
(a) A completed application form with the required fee.
(b) A copy of the facility’s written rental agreements.
(c) Disclosure information.
(d) Facility policies and procedures to ensure the facility’s administrative staff, personnel, and resident care operations are conducted in compliance with these rules.
(10) 30 DAYS BEFORE LICENSURE. 30 days before anticipated licensure the applicant must submit:
(a) To the Department, one of the following pieces of documentation concerning the individual designated as facility administrator:
(A) Verification of a valid Residential Care Facility Administrator (RCFA) license issued by the Oregon Health Licensing Office, pursuant to OAR chapter 853.
(B) Verification of a provisional Residential Care Facility Administrator license issued by the Oregon Health Licensing Office and valid until December 31, 2021. As of January 1, 2022, the individual must have successfully obtained the RCFA license defined in paragraph (A).
(C) A completed and signed Administrator Reference Sheet that reflects the qualifications and training of the individual designated as facility administrator and a background check request. This documentation will be valid until December 31, 2021. As of January 1, 2022, the individual must have successfully obtained the RCFA license defined in paragraph (A).
(b) To FPS, a completed and signed Project Substantial Completion Notice that attests substantial completion of the building project and requests the scheduling of an onsite licensing inspection.
(11) TWO-DAYS BEFORE LICENSURE. At least two working days before the scheduled onsite licensing inspection of the facility, the applicant must submit, to the Department and FPS, a completed and signed Project Completion/Inspection Checklist that confirms the building project is complete and fully in compliance with these rules.
(a) The scheduled, onsite licensing inspection may not be conducted until the Project Completion/Inspection Checklist has been received by both FPS and the Department.
(b) The onsite licensing inspection may be rescheduled at the Department’s convenience if the scheduled, onsite licensing inspection reveals the building is not in compliance with these rules as attested to on the Project Completion/Inspection Checklist.
(12) CERTIFICATE OF OCCUPANCY. The applicant must submit to the Department and FPS, a copy of the Certificate of Occupancy issued by the building codes agency having jurisdiction that indicates the intended occupancy classification and construction type.
(13) CONFIRMATION OF LICENSURE. The applicant, before admitting any resident into the facility, must receive a written confirmation of licensure issued by the Department.
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Last accessed
Jun. 8, 2021

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