Current through Register Vol. 46, No. 12, March 20, 2024
(a) In
order to approve a priority reservation application submitted pursuant to section
903.3
of this Part, the commissioner shall have determined that the prospective
applicant or applicant or in the case of an existing life care community
operating under a certificate of the authority, the operator:
(1) has complied with all applicable
requirements of this Part;
(2) has
demonstrated the capability of conducting an analysis of the market demand for
the proposed life care community, if applicable; and
(3) can be expected to meet its obligations
pursuant to this Part and in accordance with any priority reservation agreements
entered into with prospective residents.
(b) If the commissioner approves the priority
reservation application, the commissioner shall issue a written authorization to
the proposed applicant, applicant or operator authorizing that entity to:
(1) construct or otherwise maintain a sales
office;
(2) construct model
units;
(3) enter into cancelable
priority reservation agreements with prospective residents;
(4) solicit, collect and receive priority
reservation fees for direct deposit to an escrow account pursuant to section
903.5
of this Part; and
(5) collect
priority reservation application fees not to exceed $250.
(c) The commissioner's authorization shall
remain in effect as follows:
(1) in the case of
a proposed community, for a period not to exceed 18 months from the commencement
date specifically stated in the commissioner's authorization, subject to the
following conditions:
(i) The commissioner may
rescind such authorization, including any extension thereof, at any time for just
cause, including any material misstatement of fact or misrepresentation in any of
the priority reservation application materials or any materials subsequently
disseminated.
(ii) The commissioner
may extend the authorization upon approval of a written request for such
extension. The duration of such extension shall be specified in the
commissioner's written approval.
(iii) The commissioner's authorization shall be
automatically extended upon submission by the proposed applicant of a certificate
of authority application pursuant to section
900.3
of this Title unless such authorization has already expired, in which case an
application must be resubmitted. The authorization shall remain in effect as long
as the certificate of authority application remains active.
(iv) The commissioner's authorization shall be
automatically extended upon issuance of a certificate of authority to the
applicant pursuant to section
900.7 of this Title
unless such authorization has already expired in which case an application must
be resubmitted. The authorization shall remain in effect as long as the
certificate of authority remains active.
(2) In the case of an existing community
operating under a certificate of authority, the commissioner's authorization
shall remain in effect as long as the operator's certificate of authority remains
in effect provided that the commissioner may rescind such authorization at any
time for just cause, including any material misstatement of fact or
misrepresentation in any of the priority reservation application materials or any
materials subsequently disseminated.
(d) If the commissioner proposes to reject the
priority reservation application, the priority reservation applicant shall be
notified in writing of the proposed rejection including the reason(s) for such
action.
(1) The priority reservation applicant
shall have 30 days from receipt of such notice to request a reconsideration by
the Life Care Community Council.
(2)
The Life Care Community Council shall make a final determination regarding the
application within 90 days of receipt of the request for
reconsideration.
(e) If
the commissioner proposes to rescind an existing authorization, the approved
applicant shall be notified in writing of the proposed rescission including the
reason(s) for such action.
(1) The approved
applicant shall have 30 days from receipt of such notice to request a
reconsideration by the Life Care Community Council.
(2) The Life Care Community Council shall make
a final determination regarding the proposed rescission within 90 days of receipt
of the request for reconsideration.
(3) The approved applicant shall not enter into
any additional priority reservation agreements from the date of receipt of
notification of the proposed rescission unless the council overturns the
commissioner's proposed rescission.
(f) The following notices regarding the
commissioner's authorization shall be provided in writing to all parties who have
entered into priority reservation agreements.
(1) In the case of a proposed community:
(i) notice by the prospective applicant or
applicant of the commissioner's rescission of authorization to enter into
priority reservation agreements and the prospective resident's right to a refund
pursuant to section
903.5(g)
of this Part. If a reconsideration has been requested pursuant to section
903.4(e) of this Part, notice pursuant to this section shall be required only if
the rescission of authorization is upheld by the Life Care Community
Council;
(ii) notice by the
prospective applicant or applicant of the commissioner's extension of
authorization to enter into priority reservation agreements including the new
authorization expiration date and reason for the extension; and
(iii) notice by an approved applicant upon
issuance of a certificate of authority pursuant to section
900.7 of this Title that
the person who paid the reservation fee has the option on a priority basis to
apply the reservation fee to an actual entrance fee or deposit on an entrance
fee, pursuant to section
903.5(f)
of this Part.
(2) In the
case of an existing community operating under a certificate of authority, notice
by the operator of the commissioner's rescission of authorization to enter into
cancelable priority reservation agreements and the prospective resident's right
to a refund pursuant to section
903.5(g)
of this Part. If a reconsideration has been requested pursuant to section
903.4(e) of this Part, notice pursuant to this section shall be required only if
the rescission of authorization is upheld by the Life Care Community
Council.
(g) The
commissioner shall provide written notice to the escrow agent of the
commissioner's rescission of authorization to enter into priority reservation
agreements including instructions to release all reservation fees held in escrow
to the parties who paid the fees.
(h)
(1) An entity whose authorization pursuant to
this section has expired shall require a new approval to enter into priority
reservation agreements and to solicit, collect and receive priority reservation
application fees and priority reservation fees in the same manner as the original
application provided that the commissioner may waive any requirement to submit
information deemed not relevant to such application.
(2) Where there has been any change in the
legal entity which has received the commissioner's authorization pursuant to this
section, the entity shall require a new approval to enter into priority
reservation agreements and to solicit, collect and receive priority reservation
application fees and priority reservation fees in the same manner as the original
application provided that the commissioner may waive any requirement to submit
information deemed not relevant to such change.