Current through Register Vol. 46, No. 12, March 20, 2024
Any funds paid by or on behalf of a resident or prospective
resident shall be refundable as follows:
(a) An application fee or other similarly
designated processing fee shall be subject to the refund provisions specified in
the contract.
(b) Entrance fee
deposits shall be refundable as follows:
(1)
Entrance fee deposits shall be fully refundable if the contract is cancelled
within 72 hours of its execution.
(2)
If the prospective resident dies or through illness, injury or incapacity is
precluded from becoming a resident under the terms of the contract, the contract
is automatically rescinded and the prospective resident or his or her legal
representative shall receive a full refund of all moneys paid to the operator,
except for those costs specifically incurred by the community at the request of
the prospective resident or representative and set forth in writing in a separate
addendum to the contract, signed by both parties to the contract. In the event of
a multiple party contract, the contract may remain in effect at the option of the
remaining prospective residents, subject to the terms of the contract.
(3) If the contract includes more than one
resident, and one of the prospective residents dies or through illness, injury or
incapacity is precluded from being a resident under the terms of the contract,
the remaining resident(s) may cancel the contract and shall receive a full refund
of all moneys paid to the operator, except for those costs specifically incurred
by the community at the request of the prospective resident(s) or
representative(s) and set forth in writing in a separate addendum to the
contract, signed by all parties to the contract.
(4) If the community is not substantially
complete as evidenced by meeting the requirements of section
901.3(e)(1)-(3)
of this Part within six months of the completion date specified in the initial
disclosure statement which was issued to the prospective resident or his or her
legal representative the resident or representative shall have the option of
cancelling the contract. In this case, the resident or representative shall
receive a full refund of all moneys paid including earned interest, except for
those costs specifically incurred by the community at the request of the resident
or representatives and set forth in writing in a separate addendum to the
contract, signed by both parties to the contract.
(c) Subsequent to occupancy, the contract shall
be cancelled upon death of a resident in a singly occupied unit; or at least a
30-day written notice by certified mail by the resident or his or her
representative for any reason; or by the operator if the resident has willfully
mismanaged assets needed for payment of monthly care fees. The resident may not
be discharged for inability to pay the monthly care fee except where the operator
can demonstrate willful mismanagement of assets needed to pay the monthly care
fee by the resident. Upon receipt of the required notice or upon the death of the
resident, the operator shall provide for refund of any funds received as follows:
(1) if the required notice is received or if
the death of a resident in a singly occupied unit occurs within the first 90 days
of occupancy, the refund shall be at least equal to the entry fee and any other
prepayment less the actual cost of any services rendered and the actual cost of
refurbishing the living unit for resale;
(2) if the required notice is received or if
the death of a resident in a singly occupied unit occurs after the first 90 days
of occupancy, any refund shall be not less than the entrance fee, except that the
operator may retain no more than two percent per month of occupancy by the
resident of such fee and no more than a four percent fee for processing;
and
(3) any refund made subsequent to
occupancy must be made within 30 days of the resale of the living unit, but in no
event later than one year after the unit has been vacated.
(d) Subsequent to occupancy, if a resident who
is party to a multiple resident contract either dies or otherwise vacates the
unit, the contract shall remain in effect at the option of the remaining
resident(s), subject to the terms of the contract. In the event that the
remaining resident(s) cancel the contract, refunds shall be provided subject to
the provisions of subdivision (c) of this section.
(e) Any refund provisions not herein specified,
shall be subject to the terms of the life care contract.