§ 4657 — Initial disclosure statement

* § 4657. Initial disclosure statement. Prior to the execution of a\ncontract, or before the transfer of any money, other than a refundable\npriority reservation fee or non-refundable priority reservation\nagreement application fee, to an operator by or on behalf of a\nprospective resident, whichever occurs first, the operator shall deliver\nto the person with whom the contract is to be entered into, or the\nperson's legal representative, the most recent annual statement as\nrequired by section forty-six hundred fifty-eight of this article, and\nan initial disclosure statement which contains the following:\n 1. The information contained in the contract, unless a copy of such\ncontract is attached to and made a part of the initial disclosure\nstatement, together with full disclosure of the use of any fees and\ncharges in connection with the contract, including entrance fees;\n 2. The information required in paragraph h and subparagraphs (ii),\n(iii) and (iv) of paragraph i of subdivision two of section forty-six\nhundred fifty-five of this article;\n 3. The name and business address of the provider and a statement of\nwhether the provider is an individual, partnership, corporation, or\nother legal entity;\n 4. The name and address of any person whose name is required to be\nprovided pursuant to subdivisions two and three of this section and any\nprofessional service, firm, association, foundation, trust, partnership,\ncorporation, or any other business or legal entity in which such person\nhas, or which has in such person, a ten percent or greater interest and\nwhich it is presently intended will or may provide goods, leases, or\nservices to the provider of a value of five hundred dollars or more,\nwithin any year, including a description of the goods, leases or\nservices and the probable or anticipated cost thereof to the provider;\n 5. If the facility is to be operated by a manager:\n a. the identities of any other facilities managed by said individual\nor entity and a copy of the agreement currently in effect or to be\nentered into between the provider and the manager for the operation of\nthe facility;\n b. if the manager is incorporated or established and operated on a\nfor-profit basis, the identity of all individuals or entities holding\nany ownership or beneficial interest in the manager, and fees or any\nother compensation anticipated to be paid by the provider to the manager\nfor the operation of the facility; and\n c. the method by which the manager was chosen to manage the facility\nand, if the manager was chosen because of a condition in a mortgage\ncommitment to the provider, the identity of the mortgagee requiring the\ncondition in the commitment;\n 6. A description of the proposed or existing facility, including the\nlocation, size and anticipated completion date, if not completed;\n 7. A statement as to whether the applicant was or is affiliated, or\nhas a contractual relationship, with a religious, charitable, or other\nnonprofit organization, the extent of any such affiliation or\ncontractual relationship, and the extent to which the nonprofit\norganization will be responsible for the financial and contractual\nobligations of the applicant;\n 8. If the facility is already in operation or if the applicant\noperates one or more similar facilities within or outside of this state,\na statement of the changes in the scope of or the rates for care or\nservices provided, including tables showing the frequency and average\ndollar amount of each increase in periodic rates at each such facility\nfor the previous five years or such shorter period as the facility may\nhave been operated by the provider;\n 9. If the applicant is the subsidiary corporation or the affiliate of\nanother corporation, a statement identifying the parent corporation or\nthe other affiliate corporation, the primary activities of such parent,\nor other affiliate corporation, the interest in the applicant held by\nsuch parent or other affiliate corporation, and the extent to which the\nparent corporation will be responsible for the financial and contractual\nobligations of the subsidiary;\n 10. The most recent financial statement of the provider prepared in\naccordance with generally accepted accounting principles applied on a\nconsistent basis and certified by an independent certified or public\naccountant, including a balance sheet as of the end of the provider's\nlast fiscal year and income statements for the last two fiscal years, or\nsuch shorter period of time as the provider has been in operation;\n 11. If construction, lease, rental, or purchase of the facility has\nnot yet been completed, a statement of the anticipated source and\napplication of the funds to be used in such purchase, lease, rental, or\nconstruction, including but not limited to:\n a. an estimate of the cost of purchasing, leasing, renting,\nconstructing and equipping the facility, including, but not limited to,\nsuch related costs as financing expenses, legal expenses, land costs,\noccupancy development costs, and all other similar costs that the\nprovider expects to incur or become obligated for prior to the\ncommencement of occupancy;\n b. an estimate of the total entrance fees to be received from\nresidents upon completion of occupancy;\n c. a description of any mortgage loan or the other long-term financing\nintended to be used for the financing of the facility, including the\nanticipated terms and costs of such financing;\n d. an estimate of any funds which are anticipated to be necessary to\nfund start-up losses and to assure full performance of the obligations\nof the operator pursuant to fee-for-service continuing care contracts\nincluding, but not limited to, any reserves required pursuant to section\nforty-six hundred sixty-four of this article;\n e. a projection of estimated income from fees and charges other than\nentrance fees, a description of individual rates anticipated to be\ncharged, and the assumptions used for calculating the estimated\noccupancy rate of the facility;\n f. a projection of estimated operating expenses of the facility,\nincluding a description of the assumptions used in calculating the\nexpenses and separate allowances, if any, the replacement of equipment\nand furnishings and any anticipated major structural repairs or\nadditions;\n g. identification of assets pledged as collateral for any purpose; and\n h. an estimate of assets pledged as collateral for any purpose;\n 12. A statement indicating community residents who are enrolled in a\nhealth maintenance organization may have nursing facility benefits under\nboth the health maintenance organization subscriber contract and the\nfee-for-service continuing care contract. Such statement shall also\nindicate that if the health maintenance organization and the community\ncannot reach an agreement on appropriate financial arrangements, then\nthe resident may have to be admitted to a facility approved by the\nhealth maintenance organization in order to receive their Medicare\nbenefit for nursing facility services under the health maintenance\norganization subscriber contract;\n 13. The initial disclosure statement and marketing materials of a\ncommunity must clearly include a description of the services offered as\npart of its contract, and must clearly differentiate among the various\ntypes of contracts which it offers;\n 14. In accordance with regulations promulgated by the commissioner,\nthe operator shall prepare a standard information sheet for each\napproved fee-for-service continuing care retirement community, which\nmust be approved by the department, distributed with the community's\nmarketing materials and attached to the initial disclosure statement\nprepared in accordance with this section. The standard information sheet\nshall be prepared in plain language and in twelve point type and shall\ninclude, but shall not be limited to the following information:\n a. a brief description of the community, including its name and\nlocation and amenities and services available;\n b. the name, address, and telephone number of the operator and a\ncontact person employed by the operator;\n c. the number and types of independent living units, adult care\nfacility units and nursing home beds and whether such beds are on-site\nor off-site;\n d. the types of contracts available;\n e. a listing of all fees, charges, and refund options and the services\ncovered by such fees and charges;\n f. any insurance coverage required of residents; and\n g. any other information which the council determines will assist a\nconsumer in comparing the benefits and costs of different continuing\ncare retirement communities and fee-for-service continuing care\nretirement communities; and\n 15. Any other information as may be required by regulations\npromulgated by the commissioner.\n * NB There are 2 § 4657's\n