1789.1
. (a) Before executing a deposit agreement or continuing care
agreement, or receiving any payment from a depositor or prospective
resident, a provider shall deliver to the other parties in the
deposit or continuing care agreement a disclosure statement in the
form prescribed by the department.
(b) The department shall issue a disclosure statement form that
shall generally require disclosure, at a minimum, of the following
information:
(1) General information regarding the provider and the continuing
care retirement community, including at a minimum all of the
following:
(A) The continuing care retirement community's name, address, and
telephone number.
(B) The type of ownership, names of the continuing care retirement
community's owner and operator, the names of any affiliated
facilities, and any direct religious affiliation.
(C) Whether accredited and by what organization.
(D) The year the continuing care retirement community opened and
the distance to the nearest shopping center and hospital.
(E) Whether the continuing care retirement community offers life
care contracts or continuing care contracts, and whether the
continuing care retirement community is single story or multistory.
(F) The number of the continuing care retirement community's
studio units, one bedroom units, two bedroom units, cottages or
houses, assisted living beds, and skilled nursing beds.
(G) The continuing care retirement community's percentage
occupancy at the provider's most recent fiscal yearend.
(H) The form of contracts offered, the range of entrance fees, the
percentages of a resident's entrance fees that may be refunded, and
the health care benefits included in contract.
(I) Any age and insurance requirements for admission.
(J) A listing of common area amenities and other services included
with the monthly service fee, and a listing of those amenities and
services that are available for an additional charge.
(K) The number of meals each day included in the monthly service
fee, the number of meals available for an extra charge, the frequency
of housekeeping services, and additional cost, if any , for
housekeeping services.
(2) Income from operations during the most recent five years for
which audited financial statements have been completed, including all
of the following:
(A) Operating income (excluding amortization of entrance fee
income).
(B) Operating expense (excluding depreciation, amortization, and
interest).
(C) Net income from operations.
(D) Interest expense.
(E) Unrestricted contributions.
(F) Nonoperating income or expense, excluding extraordinary items.
(G) Net income or loss before entrance fees.
(H) Net cash-flow from entrance fees, that is the total deposits
less refunds.
(3) The name of the lender, outstanding balance, interest rate,
date of origination, date of maturity, and amortization period for
all secured debt.
(4) Financial ratios for each of the three most recent years for
which audited financial statements have been prepared, including all
of the following: debt-to-asset ratio, operating ratio, debt service
coverage ratio, and days cash-on-hand. The formulas for each ratio
shall be determined by the department after consultation with the
Continuing Care Advisory Committee.
(5) The average monthly service fees charged during the most
recent five years, and the percentage changes in the average from
year to year, for each of the following: studio units, one bedroom
units, two bedroom units, cottages and houses, assisted living units,
and skilled nursing units.
(6) Comments from the provider explaining any of the information
included in the disclosure form.
(c) Each provider shall update its disclosure statement at least
annually when it completes its annual audited financial statements.
Each provider shall file its updated version of the disclosure
statement with the department not later than the final filing date
for its annual report.
(d) The form prescribed by the department under this section shall
be used by providers to comply with the requirements of this
section.