NY Pub Health L § 4663 (2021)
2021 New York Laws PBH - Public Health Article 46-A - Fee-for-Service Continuing Care Retirement Communities Demonstration Program 4663 - Release of Escrowed Funds to the Operator.

* §  4663.  Release  of escrowed funds to the operator. Escrowed funds   shall not be released to the operator unless:1. construction or purchase of the community or an approved phase of a   community has been substantially completed, an occupancy permit covering   the living unit has been issued by the local government having authority   to issue such  permits,  and  the  living  unit  becomes  available  for   occupancy; or1-a. the operator has submitted an application to the commissioner, on   forms  approved  by  the  department,  for authorization to use escrowed   entrance fees to assist the operator in financing  the  construction  or   purchase  of  a  proposed community, and the commissioner, in accordance   with such regulations as may be promulgated by the council, has approved   such application. The commissioner shall not  approve  such  application   unless satisfied that the following conditions have been met:a.  the operator has executed contracts accompanied by an entrance fee   or entrance fee deposit for at least seventy  percent  of  all  proposed   living units or an approved phase of a community;b.  the  aggregate entrance fees or deposits received or receivable by   the operator pursuant  to  executed  fee  for  service  continuing  care   contracts  equal  at least ten percent of the total of the entrance fees   due at occupancy for at least seventy percent  of  all  proposed  living   units or an approved phase of a community;c.  the  operator  has entered into a contract for the construction or   purchase of the community which contract has a fixed maximum price  and,   if  a construction contract, the contractor has secured a performance or   completion bond for the benefit of the operator;d. the operator  has  received  a  firm  commitment  for  a  permanent   mortgage  loan  or  other  long  term  financing  and  conditions to the   commitment  prior  to  disbursement  of  funds  thereunder,  other  than   completion of construction or purchase, are substantially satisfied;e.  the total amount of escrowed entrance fees or deposits that may be   approved for release under this subdivision  shall  not  exceed  fifteen   percent  of the total costs of acquiring, constructing and equipping the   proposed community;f. use  of  the  entrance  fees  or  deposits  shall  not  impair  the   operator's  ability to comply with the requirements of section forty-six   hundred sixty-four of this article;g. the operator's executed contracts or amended contracts referred  to   in  paragraph  a  of  this subdivision, and all contracts generating the   entrance  fees  for  which  release  is  sought,  contain  a   provision   conspicuously disclosing the intended use of entrance fees, and that all   refunds  shall be in accordance with the otherwise applicable provisions   of this article,  the  regulations  adopted  pursuant  thereto  and  the   contract;h.  the  use  of  the entrance fees or deposits under this subdivision   will promote the efficient and cost-effective acquisition or development   of the proposed community; andi. the release, availability and use of the entrance fees comply  with   any other conditions the council shall establish.2. if the entrance fee gives the resident the right to occupy a living   unit  which  has  been  previously  occupied,  the  entrance fee and any   interest earned thereon shall be  released  to  the  operator  when  the   living unit becomes available for occupancy by the new resident; or3.  if  the  entrance  fee applies to a living unit which has not been   previously occupied, the entrance fee and any  interest  earned  thereon   shall  be  released  to  the operator when the commissioner is satisfied   that: a. Aggregate entrance fees received  or  receivable  by  the  operator   pursuant  to executed fee-for-service continuing care contracts equal at   least ten percent of the total of the entrance fees due at occupancy for   at least seventy percent of all proposed living  units  or  an  approved   phase of a community.b.  In  lieu  of  any  escrow  required  pursuant  to this article, an   operator is entitled to  post  a  letter  of  credit  from  a  financial   institution,  negotiable  securities or a bond by a surety authorized to   do business in this state, in a form approved by the commissioner and in   an amount not to exceed the amount established in paragraph  a  of  this   subdivision. The operator shall execute the letter of credit, negotiable   securities or bond in favor of the commissioner on behalf of individuals   who are entitled to a refund of entrance fees from the provider.* NB There are 2 § 4663's