(1) Purpose. The health care authority has established the recovery residence operating revolving loan to maintain an ongoing revolving fund, as authorized by 42 U.S.C. Sec. 300x-25(a) and as described in RCW 41.05.762.

(2) Fund. The fund identified in subsection (1) of this section lends money to pay for the operating start-up costs associated with recovery residence programs. These costs include, but are not limited to:

(a) One-time rent or mortgage payments;

(b) Utility security deposits;

(c) Salaries for on-site staff;

(d) Minimal maintenance costs; and

(e) Furnishings purchased for recovery residences.

(3) Maximum loan amount. A loan from the fund is for an amount of up to four thousand dollars.

(4) Eligible recipients. To be an eligible recovery residence recipient, an entity must:

(a) Be on the registry published on the authority's website or be actively seeking certification and registration under RCW 41.05.760;

(b) Be a Washington state nonprofit organization;

(c) Operate a recovery residence for a group of at least six people;

(d) Prohibit the use of alcohol, marijuana, or any illegal drug in the residence;

(e) Have a policy in place to address any use of alcohol, marijuana, or an illegal drug by residents; and

(f) Allow the use of any prescribed medication for physical health, mental health, and substance use disorders.

(5) Requirements for residents. Residents must:

(a) Pay for the cost of recovery residence housing, including any rent or fees; and

(b) Through a majority vote, establish policies governing residence in the housing, including how residence applications are approved.

(6) Application requirement. To be an applicant, an entity that meets the requirements of subsection (4) of this section must apply for a recovery residence operating loan using the application process described on the authority's website.

(7) Loan repayments.

(a) Each recovery residence loan made under this section must be repaid by the residents of the recovery residence that received the funds. The loan must be paid in full within two years from the date the loan was made.

(b) Residents must repay the loan through monthly installments set by the authority.

(8) Assessment of penalties. The authority may assess a reasonable penalty for each failure to pay the monthly installment described in subsection (7) of this section by the date specified in the loan agreement between the authority and the recovery residence operator involved in the agreement.

(9) Appeals.

(a) An applicant or recipient may appeal an adverse decision notice and request an administrative hearing under chapter 182-526 WAC by following the instructions included in the notice.

(i) An applicant may appeal a denial of a loan request as described in (a) of this subsection.

(ii) A recipient may appeal the following actions including, but not limited to:

(A) Late payment fees;

(B) Default due to nonpayment; or

(C) Default due to losing Washington alliance for quality recovery residences accreditation.

(b) An applicant or recipient of this program has 90 days from the receipt of the adverse decision to appeal and must follow the process contained in the notice.