2023 New York Laws › PBH - Public Health › Article 46 - Continuing Care Retirement Communities › 4606 - Initial Disclosure Statement.

§  4606.  Initial  disclosure  statement.  Prior to the execution of a
  contract, or before the transfer of any money, other than  a  refundable
  priority   reservation   fee   or  non-refundable  priority  reservation
  agreement application  fee,  to  an  operator  by  or  on  behalf  of  a
  prospective resident, whichever occurs first, the operator shall deliver
  to  the  person  with  whom  the  contract  is to be entered into or the
  person's legal  representative  the  most  recent  annual  statement  as
  required  by  section  forty-six  hundred  seven of this article, and an
  initial disclosure statement which contains the following:
1. The information contained in the contract, unless a  copy  of  such
  contract  is  attached  to  and  made  a  part of the initial disclosure
  statement, together with full disclosure of the  use  of  any  fees  and
  charges in connection with the contract, including entrance fees;
2.  The  information  required  in paragraph i and subparagraphs (ii),
  (iii) and (iv) of paragraph j of subdivision two  of  section  forty-six
  hundred four of this article;
3.  The  name  and business address of the provider and a statement of
  whether the provider is  an  individual,  partnership,  corporation,  or
  other legal entity;
4.  The  name  and  address of any person whose name is required to be
  provided pursuant to subdivisions two and three of this section and  any
  professional  service, firm association, foundation, trust, partnership,
  corporation, or any other business or legal entity in which such  person
  has,  or which has in such person, a ten percent or greater interest and
  which it is presently intended will or may  provide  goods,  leases,  or
  services  to  the  provider  of a value of five hundred dollars or more,
  within any year,  including  a  description  of  the  goods,  leases  or
  services and the probable or anticipated cost thereof to the provider;
5. If the facility is to be operated by a manager:
a.  the  identities of any other facilities managed by said individual
  or entity and a copy of the agreement  currently  in  effect  or  to  be
  entered  into  between the provider and the manager for the operation of
  the facility;
b. if the manager is incorporated or established  and  operated  on  a
  for-profit  basis,  the  identity of all individuals or entities holding
  any ownership or beneficial interest in the manager,  and  fees  or  any
  other compensation anticipated to be paid by the provider to the manager
  for the operation of the facility; and
c.  the  method by which the manager was chosen to manage the facility
  and, if the manager was chosen because of  a  condition  in  a  mortgage
  commitment  to the provider, the identity of the mortgagee requiring the
  condition in the commitment.
6. A description of the proposed or existing facility,  including  the
  location, size and anticipated completion date if not completed;
7.  A  statement  as to whether the applicant was or is affiliated, or
  has a contractual relationship, with a religious, charitable,  or  other
  nonprofit   organization,   the   extent  of  any  such  affiliation  or
  contractual  relationship,  and  the  extent  to  which  the   nonprofit
  organization  will  be  responsible  for  the  financial and contractual
  obligations of the applicant;
8. If the facility  is  already  in  operation  or  if  the  applicant
  operates one or more similar facilities within or outside of this state,
  a  statement  of  the  changes  in the scope of or the rates for care or
  services provided, including tables showing the  frequency  and  average
  dollar  amount  of each increase in periodic rates at each such facility
  for the previous five years or such shorter period as the  facility  may
  have been operated by the provider;
9.  If the applicant is the subsidiary corporation or the affiliate of
  another corporation, a statement identifying the parent  corporation  or
  the  other affiliate corporation, the primary activities of such parent,
  or other affiliate corporation, the interest in the  applicant  held  by
  such  parent or other affiliate corporation, and the extent to which the
  parent corporation will be responsible for the financial and contractual
  obligations of the subsidiary;
10. Most recent  financial  statement  of  the  provider  prepared  in
  accordance  with  generally  accepted accounting principles applied on a
  consistent basis and certified by an independent  certified,  or  public
  accountant,  including  a  balance sheet as of the end of the provider's
  last fiscal year and income statements for the last two fiscal years, or
  such shorter period of time as the provider has been in operation;
11. If construction, lease, rental, or purchase of  the  facility  has
  not  yet  been  completed,  a  statement  of  the anticipated source and
  application of the funds to be used in such purchase, lease, rental,  or
  construction, including but not limited to:
a.   an   estimate  of  the  cost  of  purchasing,  leasing,  renting,
  constructing and equipping the facility, including, but not limited  to,
  such  related  costs  as  financing  expense, legal expense, land costs,
  occupancy development costs,  and  all  other  similar  costs  that  the
  provider  expects  to  incur  or  become  obligated  for  prior  to  the
  commencement of occupancy;
b. an estimate  of  the  total  entrance  fees  to  be  received  from
  residents upon completion of occupancy;
c. a description of any mortgage loan or the other long-term financing
  intended  to  be  used  for the financing of the facility, including the
  anticipated terms and costs of such financing;
d. an estimate of any funds which are anticipated to be  necessary  to
  fund  start-up  losses and to assure full performance of the obligations
  of the operator pursuant to  life  care  contracts  including,  but  not
  limited  to, any reserves required pursuant to section forty-six hundred
  eleven of this article;
e. a projection of estimated income from fees and charges  other  than
  entrance  fees,  a  description  of  individual  rates anticipated to be
  charged,  and  the  assumptions  used  for  calculating  the   estimated
  occupancy rate of the facility;
f.  a  projection  of  estimated  operating  expenses of the facility,
  including a description of  the  assumptions  used  in  calculating  the
  expenses  and  separate allowances, if any, the replacement of equipment
  and  furnishings  and  any  anticipated  major  structural  repairs   or
  additions;
g. identification of assets pledged as collateral for any purpose;
h. an estimate of assets pledged as collateral for any purpose; and
12.  A  statement indicating that community residents who are enrolled
  in a health maintenance organization may have nursing facility  benefits
  available  under  both  the  health  maintenance organization subscriber
  contract and the continuing care  retirement  contract.  Such  statement
  shall  also indicate that if the health maintenance organization and the
  community  cannot  reach   an   agreement   on   appropriate   financial
  arrangements,  then  the  resident may have to be admitted to a facility
  approved by the health maintenance  organization  in  order  to  receive
  their  Medicare  benefit  for nursing facility services under the health
  maintenance organization subscriber contract.
13. The initial disclosure statement  and  marketing  materials  of  a
  continuing  care retirement community must clearly include a description
  of the services offered as part of  its  contract,  including,  but  not
  limited  to,  any  limitations on nursing facility services. The initial

  disclosure statement  and  marketing  materials  of  a  continuing  care
  retirement  community which offers various types of contracts, which may
  include life  care  contracts,  must  clearly  differentiate  among  the
  various types of contracts which it may offer.
14.  In  accordance  with  regulations promulgated by the council, the
  operator shall prepare a standard information sheet  for  each  approved
  continuing  care  retirement  community,  which  must be approved by the
  department  of  health,  distributed  with  the  community's   marketing
  materials  and  attached to the initial disclosure statement prepared in
  accordance with this section. The standard information  sheet  shall  be
  prepared  in  plain  language and in twelve point type and shall include
  but shall not be limited to the following information:
a. a brief description  of  the  community,  including  its  name  and
  location and amenities and services, including meal options, available;
b.  the  name,  address,  and  telephone  number of the operator and a
  contact person employed by the operator;
c. the number and  types  of  independent  living  units,  adult  care
  facility  units  and nursing home beds and whether such beds are on-site
  or off-site;
d. the types of contracts available;
e. a listing of all fees, charges, and refund options and the services
  covered by such fees and charges;
f. any insurance coverage required of residents; and
g.  any  other  information  which  the  continuing  care   retirement
  community  council  determines  will  assist a consumer in comparing the
  benefits and costs of different continuing care retirement communities.
15.  Any  other  information  as  may  be  required   by   regulations
  promulgated by the council.