(1) A social services district may establish a differential payment rate for child care services provided by licensed or registered child care providers that have been accredited by a nationally recognized child care organization. Legally-exempt child care providers are not eligible for a differential payment rate under this paragraph. If the social services district chooses to provide a differential rate, the differential rate must be at least five percent higher than the actual cost of care or the applicable market rate, whichever is less. The differential rate may not exceed 15 percent of the actual cost of care or the applicable market rate, whichever rate is less.

(2) A social services district must establish differential payment rates for any eligible child care provider as defined in section 415.1(g) of this Part for child care services provided during nontraditional hours (evening, night or weekend hours). The differential rate must be at least five percent higher than the actual cost of care or the applicable market rate, whichever is less. The differential rate may not exceed 15 percent of the actual cost of care or the applicable market rate, whichever is less.

(3) A social services district must establish differential payment rates for licensed and registered child care providers for child care services provided to a child experiencing homelessness. A social services district may establish differential payment rates for legally-exempt child care providers for a child experiencing homelessness. The differential rate for licensed and registered child care providers must be at least five percent higher than the actual cost of care or the applicable market rate, whichever is less. There is no minimum differential rate for legally-exempt child care providers. The differential rate may not exceed 15 percent of the actual cost of care or the applicable market rate, whichever is less.

(4) The differential payment rates the district sets may be different for each category established in this subdivision. The social services district must indicate in the district's consolidated services plan or integrated county plan the percentage that it will provide for each category. The social services district must indicate the rate that it will provide for child care providers that qualify for multiple differential payment rates, pursuant to this section. The total percentage must not exceed 25 percent of the applicable market rate or the actual cost of care. A social services district may request a waiver from the office to establish a payment rate that is in excess of 25 percent above the applicable market rate upon a showing that the 25 percent maximum is insufficient to provide access within the district to such child care providers or services, as applicable.

(1) The standard market rate of payment for legally-exempt group child care programs is the actual cost of care up to 75 percent of the applicable market rate for day care center providers as set forth in this section.

(2) A social services district may establish one or both of the following categories of enhanced rates for child care services provided by legally-exempt group child care programs:

(3) When a social services district establishes an enhanced market rate for child care services provided by eligible legally-exempt group child care programs in accordance with subparagraphs (2)(i) and (ii) of this subdivision, the district may pay up to 87 percent of the applicable market rate for day care centers when all requirements of both subparagraphs are met.

(4) An enhanced market rate established pursuant to this subdivision will only be available to those legally-exempt group child care programs that have submitted documentation to the applicable legally-exempt caregiver enrollment agency verifying compliance with:

(5) The applicable social services district and its designees, or applicable legally-exempt caregiver enrollment agency shall inspect any legally-exempt group child care program that requests or receives an enhanced market rate pursuant to this subdivision.

(6) The social services district must indicate in the district’s consolidated services plan or integrated county plan the percentage and category of any enhanced market rate it will provide for child care services provided by eligible legally-exempt group child care programs.

(7) A legally-exempt group child care program may receive an enhanced market rate pursuant to this subdivision and one or more differential rates pursuant to this section, provided however, that the total payment made to a legally-exempt group child care program must not exceed either 100 percent of the applicable market rate for day care centers as set forth in this section, or the actual cost of care, whichever is less.

(1) Effective May 1, 2019, the following are the local market rates for each social services district set forth by the type of provider, the age of the child and the amount of time the child care services are provided per week.

(2) There are two market rates for informal child care, a standard market rate and an enhanced market rate. The standard market rate for informal child care will be 65 percent of the applicable registered family day care market rate. The enhanced market rate for informal child care will be 70 percent of the applicable registered family day care market rate. The enhanced market rate will apply to those informal child care who have provided notice to, and have been verified by, the applicable enrollment agency, as having completed 10 or more hours of training annually in the areas set forth in section 390-a(3)(b) of the Social Services Law. This 10 or more hours of training must be in addition to the training requirements in section 415.13 of this Part. A social services district has the option, if it so chooses in the child care portion of its Child and Family Services Plan, to increase the enhanced market rate for informal child care providers to up to 75 percent of the applicable registered family day care market rate.

(3) The market rates are established for each of five groupings of social services districts. The rates established for a group apply to all districts in the designated group. The district groupings are as follows: