Sec. 32.02.01.18. Action of the Department on Expansion Approval Request

A. The Department shall approve an expansion approval request and, if applicable, issue a revised certificate of registration that includes the additional units when it determines that:

(1) A market for the additional independent living and assisted living units appears to exist, based on reliable data; and

(2) A reasonable financial plan, prepared by an authority recognized by the Department, has been submitted for the proposed expansion that demonstrates that the:

(a) Anticipated sources of funds to finance the proposed expansion are equal to or greater than the anticipated uses of funds for the proposed expansion, and

(b) Proposed expansion will not have an unreasonably adverse effect on the financial ability of the provider to furnish continuing care in accordance with the provider's agreements and the Act at each facility of the provider in the State.

B. A provider may not begin construction of the expansion until the provider receives written approval from the Department for the proposed expansion.