Federal & Healthcare
Residential Care Facility Bond
A bond a licensed residential care or assisted living facility files with the state when it handles residents' money.
- Required by
- State licensing agencies, such as the California Department of Social Services
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond runs to the state licensing agency (the obligee). It guarantees the facility will handle residents' money faithfully and honestly, and a resident can be repaid from the bond if the facility misuses or loses their funds.
Who needs it
- Residential care facilities for the elderly
- Assisted living and board-and-care homes
- Adult residential facilities that manage resident funds
What the underwriter looks at
- Amount of resident money handled each month
- Number of residents
- Owner credit
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much is the bond in California?
California Health and Safety Code 1569.60 says the department sets it by the size of the operation, at no less than $1,000.
Is any facility exempt?
In California, a facility that handles less than $50 per resident and less than $500 in total each month does not need the bond.