SECTION 1. Notwithstanding any special or general law to the contrary, the executive office of health and human services shall, subject to appropriation, establish a no-interest, forgivable loan program for the purposes of (i) funding the development of nursing facility specialized care units, (ii) enabling facilities to offset the costs of pay-go capital improvements and (iii) funding innovative projects designed to reduce nursing facility bed capacity in order to meet the needs and preferences of older adults.

Funding to support nursing facility specialized care units shall include, but not be limited to: (a) infectious disease isolation; (b) dementia special care; (c) degenerative neurological units; (d) geriatric psychiatry; (e) traumatic brain injury; (f) in-house dialysis treatment; and (g) behavioral health and substance use disorder. Funding to offset the pay-go capital improvements shall include, but not be limited to: (a) heating, ventilation, and air conditioning systems and air filtration system upgrades to mitigate the spread of airborne illnesses; (b) roof and other infrastructure replacement and repair projects; (c) alternative energy conversion projects; and (d) elevator renovations to comply with new government requirements. Funding to promote innovative projects shall include, but not be limited to: (a) conversion of sections within nursing facilities into affordable housing, veterans housing, or assisted living units to better accommodate individual needs of residents; (b) converting multi-bed rooms to single occupancy to enhance privacy and dignity; and (c) establishing voluntary nursing facility reconfigurations, including financial incentives to reduce capacity and balance supply and demand based on regional needs.