New Mexico Administrative Code
Title 9 - HUMAN RIGHTS
Chapter 2 - AGE
Part 24 - THE ADMINISTRATION OF THE CONTINUING CARE ACT
Section 9.2.24.15 - FINANCIAL RESERVES
Universal Citation: 9 NM Admin Code 9.2.24.15
Current through Register Vol. 35, No. 18, September 24, 2024
A. Liquid Reserves:
(1) A community must maintain liquid reserves and the provider must disclose this information to ALTSD, and actual and prospective residents in its annual disclosure statement.
(2) The liquid reserves shall be sufficient to assure payment of debt obligations and an ongoing ability to provide services to residents.
(3) A community that provides a type A agreement shall, at all times, maintain liquid reserves equal to the principal and interest payments due for a 12-month period on all accounts of any mortgage loan and other long-term debt, as well as three months' worth of net operating expenses.
B. Other Reserves:
(1) Deposits or entrance fees paid by or for a resident constitute reserves which shall be held in trust for the benefit of the resident in a federally insured New Mexico bank, separate from the community's operating accounts, until:
(a) the resident has occupied the resident's unit; or
(b) the resident's contract cancellation period has ended, whichever occurs later.
(2) A community that provides type B agreements shall calculate required reserves on a prorated basis for residents who fall under type B agreements.
C. Certification of Compliance Regarding Financial Reserves:
(1) A provider shall make available to the certified public accountant who is responsible for the community's annual audited financial statement and audit report, a copy of this rule and a copy of the Continuing Care Act, specifically the requirements for financial reserves referenced in Section 24-17-6 NMSA 1978.
(2) The certified public accountant shall certify whether, based upon the audit, the community meets the financial reserve requirements delineated in this rule and in the Continuing Care Act. If the certified public accountant finds that the community does not meet the financial reserve requirements delineated in this rule and in the Continuing Care Act, then the certified public accountant shall state the reason(s) for the community's deficiencies.
D. Corrective Action Plan: If the certified public accountant is unable to attest that the community meets the financial reserve requirements delineated in this rule and in the Continuing Care Act, then the provider shall submit a proposed Corrective Action Plan to ALTSD.
Disclaimer: These regulations may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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