New Jersey Administrative Code
Title 5 - COMMUNITY AFFAIRS
Chapter 19 - CONTINUING CARE RETIREMENT COMMUNITY RULES
Subchapter 4 - DISCLOSURE STATEMENT
Section 5:19-4.2 - Contents of disclosure statement
Universal Citation: NJ Admin Code 5:19-4.2
Current through Register Vol. 56, No. 18, September 16, 2024
(a) The disclosure statement shall contain the following information unless the information is contained in the contract:
1. The name and
business address of the provider and a statement of whether the provider is a
partnership, corporation or other type of legal entity;
2. The names and business addresses of the
officers, directors, trustees, managing or general partners and any person
having a 10 percent or greater equity or beneficial interest in the provider
and a description of that person's interest in or occupation with the
provider;
3. With respect to the
provider, any person named in response to (a)2 above and the proposed operator,
if the facility is managed on a day-to-day basis by a person other than an
individual directly employed by the provider:
i. A description of the person's business
experience, if any, in the operation or management of similar
facilities;
ii. The name and
address of any professional service firm, association, trust, partnership or
corporation in which the person has a 10 percent or greater interest and which
may provide goods, leases or services to the facility of a value of $ 500.00 or
more, within any year;
iii. A
description of the goods, leases or services provided pursuant to (a)3ii above
and the probable or anticipated cost thereof to the facility or
provider;
iv. A description of any
matter in which the person has been convicted of a crime or pleaded nolo
contendere to a criminal charge, or has been held liable or enjoined in a civil
action which involved fraud, embezzlement, fraudulent conversion or
misappropriation of property; and
v. A description of any matter in which the
person is subject to a currently effective injunctive or restrictive court
order or, within the past five years, had a state or Federal license or permit
suspended or revoked as a result of an action brought by a governmental agency
or department, which arose out of or related to business activity or health
care, including actions affecting a license to operate a residential health
care facility, rooming or boarding house, nursing home, retirement home, home
for the aged or facility certified under the Act or a similar act in another
state.
4. A statement
whether the provider is or ever has been affiliated with a religious,
charitable or other non-profit organization, the nature of the affiliation, if
any, the extent to which the affiliate organization is responsible for the
financial and contractual obligations of the provider, and the provision of the
Federal Internal Revenue Code, if any, under which the provider or affiliate is
exempt from the payment of income tax;
5. The location and description of the
physical property of the facility, both existing and proposed, and, with
respect to proposed property, the estimated completion date, the date
construction began or shall begin and the contingencies subject to which
construction may be deferred.
6. A
statement of what laws and regulations apply to the operation and maintenance
of the facility and which public agencies have jurisdiction over the
facility;
7. The services provided
or proposed to be provided under contracts for continuing care at the facility,
including the extent to which medical care and other services are furnished
under the basic contract and which other care or services are available at or
by the facility at extra charge;
8.
A description of all fees required of residents subject to contracts for
continuing care, including the application fee, entrance fee and periodic
charges, if any, the manner by which the provider may adjust periodic charges
or other recurring fees and the limitation on the adjustments, if any, and, if
the facility is already in operation or if the provider or operator operates
one or more similar facilities within this State, tables showing the frequency
and average dollar amount of each increase in periodic rates at each facility
for the previous five years or as many years as the facility has been operated
by the provider or operator, whichever is less;
9. The provisions that have been made or will
be made, if any, to provide reserve funding or security which will enable the
provider to fully perform its obligations under contracts to provide continuing
care at the facility, including the establishment of escrow accounts, trusts or
reserve funds, the manner in which the funds shall be invested and the names
and experience of persons who will make the investment decisions;
10. Certified financial statements of the
provider which include balance sheets and income statements for the two most
recent completed fiscal years or for as long as the provider has been in
existence, whichever is less;
11.
If the operation of the facility has not yet commenced, a statement of the
anticipated source and application of the funds used or to be used in the
purchase or construction of the facility, including:
i. An estimate of the cost of purchasing or
construction and equipping the facility which includes related costs such as
financing expenses, legal expenses, land costs, marketing and development costs
and other similar costs the provider expects to incur or become obligation for
prior to the commencement of operations;
ii. A description of any mortgage loan or
other long-term financing intended to be used for the financing of the facility
and the anticipated terms and costs of the financing;
iii. An estimate of the total amount of
entrance fees to be received from or on behalf of residents at or prior to
commencement of operation of the facility;
iv. An estimate of the funds, if any, which
are anticipated to be necessary to fund start-up losses and provide reserve
funds to assure full performance of the obligations of the provider under
contracts for the provision of continuing care;
v. A projection of estimated income from fees
and charges other than entrance fees, a description of individual rates
anticipated to be charged, the assumptions used in calculating the estimated
occupancy rate of the facility and the effect on the income of the facility of
government subsidies, if any, for health care services provided pursuant to the
contracts for continuing care;
vi.
A projection of estimated operating expenses of the facility, including a
description of the assumptions used in calculating the expenses and separate
allowances, if any, the replacement of equipment and furnishings and any
anticipated major structural repairs or additions.
vii. Identification of assets pledged as
collateral for any purpose; and
viii. An estimate of annual payments of
principal and interest required by any mortgage loan or other long-term
financing.
12. The "Bill
of Rights for Continuing Care Retirement Community Residents in Independent
Living," in such terms and in such form as required by this chapter;
13. Notice that the prospective resident
shall have 30 days to review the disclosure statement and written explanation
of residents' rights and responsibilities prior to executing the
contract;
14. Notice of the
resident's right to cancel the agreement within 30 days after signing and then
to receive a full refund, except for the application fee. This notice shall
also advise that the prospective resident may wait to occupy a unit until the
end of the 30-day rescission period;
15. A copy of the rules and regulations of
the facility regarding the resident's responsibilities and conduct acceptable
to the facility, which rules and regulations shall not limit, restrict, or be
otherwise inconsistent with the rights set forth in the "Bill of Rights for
Continuing Care Retirement Community Residents in Independent Living";
and
16. Other material information
concerning a specific facility or provider as the provider wishes. SUBCHAPTER
6. CONTRACTS
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