Process for Change in Residential Capacity

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Process for Residential Change in Capacity:

Effective January 1, 2020, the established rates for the Alternative Residential Model (ARM) community care facilities vendored to serve four or fewer consumers.

The establishment of these rates is intended to support our system readiness for changes in Home and Community Based Settings (HCBS) where individuals will need access to choosing single rooms when preferred over shared room settings. However, changing your vendored capacity is not necessarily required to be found in HCBS compliance.

The process for requesting a residential change in capacity is meant to be a permanent change to your vendorization, as opposed to a variable, sliding scale rate depending on a home’s current occupancy.

If you currently have more residents than your desired capacity level, you will need to work with your consumer planning teams and conduct appropriate IPP planning before any changes to your vendorization can be made. In addition, you need to contact Community Care Licensing (CCL) and change the capacity on your license. Should you wish to make this change to your vendorization, please submit a formal letter on your agency’s letterhead requesting this change and attach your updated license which reflects your new capacity.

Additionally, a program design addendum reflecting the new residential capacity of four (4) with adjusted direct care staffing hours also needs to be submitted. Considering residential services have a monthly rate, the effective date for the change in capacity rate will be the first of the month.

The first of the month effective date may vary depending on when the request was received. See example below:

  • Any request from January 1-15, the effective date is March 1st
  • Any request from January 16-31, the effective date is April 1st

Breakdown of Capacity Change Process:

1. IPP planning has been conducted. 
2. Obtain license change from CCL reflecting a total capacity of 4.
3. Program design addendum reflecting a capacity of 4
4. Direct Care Staffing Schedule updated.
5. Send in a formal capacity change request on agency letterhead identifying the 4 individuals (name & UCI #) residing in the home.

Please note the capacity change process can take between 8 to 10 weeks to complete and there is no retroactive payment for a change in capacity. Once ALL required documents are received by Resource Development the capacity change process can then be initiated. Resource Development will then start the process in making changes to the vendor capacity and issue a response letter once completed. All capacity change documents will then be added to your vendor file.

Submit your capacity change request electronically to



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