Community Care Bond
If you run an adult day program, group home, or residential care facility in California, you need what’s known as a community care facility licensing bond. Learn what this bond is, how it works, how much it costs, and more.
What is a community care facility licensing bond?
Anyone who wishes to apply for a license to operate a community care facility in California must obtain this bond. A community care facility licensing bond ensures bondholders comply with all statutes, ordinances, rules, and regulations for their industry and state.
The bond protects community care facilities from those who handle client or resident funds. If a licensee is unfaithful or dishonest in handling money, the injured party can file a claim against the bond for any monetary losses.
Get Your Community Care Bond:
Who needs a community care licensing bond?
In California, individuals who run any of the following community care facilities must obtain a bond:
- Adult residential facility
- Adult day program or social rehabilitation facility
- Foster family home/agency
- Group home
- Small family home
- Residential care facility
How does a California community care bond work?
There are three parties involved:
- Principal: The community care facility that must purchase the bond
- Obligee: The California Department of Social Services
- Surety: The financial institution that issues and backs the bond
The bond guarantees that the principal fulfills all their obligations to the obligee. If someone files a claim against the bond, the surety will investigate whether it’s legitimate. If it is, the surety will pay out the claim upfront and then seek full reimbursement from the principal.
How much does a community care facility licensing bond cost?
The cost of this bond starts at 1% of the total bond amount for applicants with excellent credit scores. Your bond requirement could range from $1,000 to $100,000. If your requirement is $3,000 or less, it doesn’t require a credit pull (so we can issue it instantly). Bond requirements above that amount require a credit pull and a signed application.
How to Apply for a Community Care Facility License
You may need to complete and submit the following forms depending on your license type. See the Application Packet for complete details and links to forms.
- Application
- Designation of administrative responsibility
- Surety bond
- Monthly operating statement
- Administrative organization
- Affidavit
- Financial information
- Balance sheet
- Budget information
- Personnel report
- Health screening report
- Criminal record statement
- Emergency disaster plan
- Facility sketch
- Fire inspection
How to Get Your California Community Care Facility Bond
To apply, you must provide proof of your financial capability, business history information, and credit score. If you get stuck anywhere in the application or have questions, don’t hesitate to call ZipBonds at (888) 435-4191. We’re always happy to help!
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.