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California Residential Care Facility Bond

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How much does a residential care facility bond cost in California?

Residential care facility providers who handle client funds are required by the California Department of Social Services to post surety bonds in varying amounts. The amount of this bond varies according to the type of residential facility and the quantity of funds handled. Applicants should verify their required bond amount with the state prior to bonding.

The cost of a California residential care facility bond depends on the amont of the bond being required. Bonds that are $1,000 or $2,000 are issued instantly for 4-year terms and cost $120. Bonds in amounts of $3,000 or more start at a minimum cost $50 but can vary depending on the bond amount required.

Bond Type
$1,000Residential Care Facility Bond$750 or less safeguarded per month
$2,000Residential Care Facility Bond$751 - $1,500 safeguarded per month
$3,000Residential Care Facility Bond$1,501 - $2,500 safeguarded per month
$4,000-$20,000Residential Care Facility Bond

Why are residential care facilities bonded?

California residential care facilities are bonded to ensure that principals (care facilities) faithfully and honestly handle the money given to them by their clients/residents for services provided. If the facility mishandles or misappropriates the funds, the bond protects harmed parties from financial loss up to the full penal sum of the bond. The principal, in turn, must reimburse the surety for all damages paid out.

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What’s the fine print?

Residential care facility surety bonds in California can be canceled by the surety in accordance with section 996.030 of the Code of Civil Procedure. The cancellation notice must be sent in accordance with the provisions of section 996.320 of the Code of Civil Procedure. These bonds become effective on the date indicated on the bond form and remain in effect for the life of the license. The facility’s name, address and license number must be listed on the surety bond form.

How to become a residential care facility in California

The following licensees must post this surety bond:

  • Adult residential facilities that handle client/resident funds in any amount
  • Adult day programs that handle client/resident funds in any amount
  • Social rehabilitation facilities that handle client/resident funds in any amount
  • Foster family homes that handle at least $50 per client/resident or at least $500 for all clients/residents in any month
  • Foster family agencies that handle at least $50 per client/resident or at least $500 for all clients/residents in any month
  • Group homes that handle at least $50 per client/resident or at least $500 for all clients/residents in any month
  • Small family homes that handle at least $50 per client/resident or at least $500 for all clients/residents in any month
  • Residential care facilities for persons with chronic, life-threatening illnesses that handle at least $50 per client/resident or at least $500 for all clients/residents in any month
  • Residential care facilities for the elderly that handle at least $50 per client/resident or at least $500 for all clients/residents in any month

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